Standard Terms & Conditions for Credit Facilities

1. Key Definitions

• "Application Form" — The Credit Facility Application Form submitted by the Borrower/s through Partners to AFPL for applying for and availing of the Loan.
• "Borrower/s" — The applicant(s) and co-applicant(s) who have been sanctioned the Loan by AFPL, including their successors and assigns as applicable.
• "Borrower's Dues" — Outstanding principal, interest, fees, costs, charges, expenses, stamp duty, and all other sums payable by the Borrower to AFPL under the Loan Documents.
• "Business Day" — A day on which the relevant/local office of AFPL is open for normal business transactions.
• "Due Date" — The date(s) on which any amounts fall due as specified in the Application Form and/or Loan Documents.
• "Delayed Payment Charges" — Additional amount payable by the Borrower on account of delay in payment of any Instalment.
• "Effective Date" — Unless specified otherwise, the date of disbursement of the Loan to the Borrower.
• "Events of Default" — The occurrence of any one or more events of default as stipulated in Paragraph 7.
• "Fee" — Aggregate amount payable by the Borrower to AFPL towards documentation fee, servicing fee, loan processing fee, platform fee, and registration fee.
• "Interest" — Interest payable by the Borrower on the Loan at the applicable Rate of Interest.
• "Instalments" — Unless otherwise specified, the instalments of principal and interest spread throughout the tenure of the Loan and due payable per the Repayment Schedule.
• "Loan" — The loan/financial assistance sanctioned in the form of a credit limit facility by AFPL to the Borrower.
• "Loan Documents" — The Application Form, Standard Terms and Conditions, MILT/Loan Documents, and all writings executed in relation to the Loan.
• "Most Important Loan Terms" or "MILT" — The document containing the salient terms and conditions pertaining to the Loan, accepted/confirmed by the Borrower.
• "Pre-Instalment Interest (PII)" — Amount payable by the Borrower at the applicable interest rate on the Loan from the Effective Date to the date immediately prior to the commencement of Instalments.
• "Rate of Interest" — The rate of interest applicable on the Loan as specified in the MILT/Loan Documents.
• "Repayment Schedule" — The schedule of repayment of the principal amount and interest in the amounts and dates specified in the MILT/Loan Documents.

2. Loan and Disbursement

• AFPL may grant the Loan to the Borrower on the basis of information and representations in the Application Form. Grant of the Loan is at the absolute discretion of AFPL.
• The Loan, sanctioned in the form of a credit limit facility, can be availed in tranches subject to the condition that the total limit availed shall not exceed the maximum limit specified in the MILT/Sanction Letter.
• Once a limit that has been availed is repaid, the principal amount repaid will be re-instated to the original sanctioned Loan amount.
• Every request for a Loan shall be assessed individually at AFPL's sole discretion, based on internal policies and eligibility criteria.
• Once the Application Form is accepted, the Borrower shall not be entitled to cancel the Loan or refuse disbursement without AFPL approval and payment of applicable cancellation charges.

3. Interest and Charges

• The Borrower shall be liable to pay Interest on the Loan at the Rate of Interest as applicable, calculated on a daily balance of the outstanding Loan.
• Interest on the Loan accrues from the date of disbursement/Drawdown.
• The Rate of Interest is subject to change prospectively based on monetary policies of the Reserve Bank of India and other factors impacting interest rates.
• Pre-Instalment Interest, if unpaid, will be capitalised to the outstanding Loan amount and shall become part of the Loan amount.
• The Borrower agrees to bear and pay to AFPL fees and charges with applicable taxes as specified in the Application Form/Loan Documents and the AFPL website.

4. Repayment

• The Borrower shall repay the Loan together with interest and all other charges in accordance with the Repayment Schedule specified in the MILT/Loan Documents.
• All payments shall be made without any deduction, set-off, or counterclaim.
• Prepayment of the Loan is subject to the applicable Prepayment Charge as specified in the MILT.

5. Events of Default

An Event of Default occurs if the Borrower:

• Fails to pay any amount due under the Loan Documents on the due date.
• Breaches any representation, warranty, or undertaking under the Loan Documents.
• Becomes subject to insolvency proceedings or is unable to pay its debts as they fall due.
• Ceases or threatens to cease to carry on business.
• Provides false or misleading information in connection with the Loan.
• Undergoes any change in constitution, ownership, or management that adversely affects AFPL's interests.

6. Security

AFPL shall release all securities on full repayment of all Borrower Dues, subject to any legitimate right or lien for any other claim. If AFPL exercises a right of set-off, the Borrower shall be given notice with full particulars of the remaining claims and the conditions under which AFPL is entitled to retain the securities.

7. Governing Law and Jurisdiction

These Standard Terms and Conditions shall be governed by and construed in accordance with the laws of India. Any disputes arising out of or in connection with the Loan shall be subject to the exclusive jurisdiction of the courts at Bangalore, Karnataka.

Contact Information

Avanti Finance Private Limited

#2727, 2nd Floor, 1st Main Road, HAL 3rd Stage, New Thippasandra, Bangalore 560075

CIN: U64920KA2016PTC138355 | Toll-Free: 1800 309 5021