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The Capital Loan Agreement is a crucial document used in Indian financial transactions when a borrower seeks substantial funding for business operations, expansion, or asset acquisition. This agreement type is essential for both lenders and borrowers as it provides a legally binding framework that complies with Indian banking regulations, including the Banking Regulation Act, 1949, and RBI guidelines. The document comprehensively covers loan terms, security arrangements, representations, warranties, and covenants, while incorporating specific Indian legal requirements such as stamp duty compliance and registration requirements where applicable. It's particularly important for corporate borrowings and includes provisions for security creation, enforcement under the SARFAESI Act, and dispute resolution through Indian courts or tribunals.

1. Parties: Identifies the lender and borrower with their complete legal names, addresses, and registration details

2. Background: Sets out the context of the loan, including the borrower's requirement for capital and the lender's agreement to provide the loan

3. Definitions and Interpretation: Defines key terms used throughout the agreement and establishes rules of interpretation

4. Loan Amount and Purpose: Specifies the principal amount of the loan and its intended use

5. Interest Rate and Computation: Details the applicable interest rate(s), calculation method, and payment frequency

6. Disbursement Terms: Conditions precedent to disbursement and the mechanism for loan drawdown

7. Repayment Terms: Schedule of repayment, including principal and interest payment dates

8. Security: Details of the security/collateral provided for the loan

9. Representations and Warranties: Statements of fact and assurances given by the borrower

10. Covenants: Positive and negative obligations of the borrower during the loan term

11. Events of Default: Circumstances that constitute default and their consequences

12. Rights and Remedies: Lender's rights and remedies in case of default

13. Expenses and Indemnity: Allocation of costs and indemnification obligations

14. Notices: Process and addresses for serving notices under the agreement

15. Governing Law and Jurisdiction: Specifies Indian law as governing law and jurisdiction for disputes

16. Miscellaneous: Standard boilerplate provisions including amendments, waivers, severability