STANDARD TERMS AND CONDITIONS GOVERNING FACILITY/LOANS

I. INTRODUCTION

These terms and conditions (“Terms”) between you and SK Finance Limited (“SKFL”/ “Company”)/ (“we”, “us”) form the basis of your relationship with us and the terms on which you will participate in Facility (defined below).

Where we have published/executed a document which is referred to within these Terms (such as a loan agreement), the content of said document shall also form part of these Terms and shall be deemed as being accepted by you. In the event of any inconsistencies or contradictions between these Terms and a document referenced within them, the decisions of SKFL shall be final and binding. Please read these Terms and the loan agreement carefully and ensure that key terms such as interest rate, repayment, security, prepayment etc. are clearly stated before you execute the agreement.

All individual applicants, co-applicants and guarantor(s) [collectively, “the Applicant(s)”, which expression shall, as the subject or context may admit or require, mean any or each of the Applicant/s and/or Borrower/s and/or Co-Applicant(s) and/or Guarantor(s)] , who wish to avail financial assistance across various loan types including Commercial Vehicle Loan, Car Loan, Tractor Loan, Construction Equipment Loan, Two Wheeler Loan, Mortgage Loan, Home Renovation-Mortgage Loan, Insurance Loan, Personal Loan (the “Facility”) from SKFL for the purpose stipulated in the loan application form, sanction letter and/or loan Agreement ( “Purpose”) are required to fill in complete details as required by SKFL and shall submit to SKFL for applying for the Facility.

SKFL shall be entitled at its sole and absolute discretion to reject/approve any application submitted by the Applicant(s) (“Application Form”) for availing the Facility. In the event of any such rejection, SKFL shall not be liable to inform the Applicant(s), the reason for such rejection. SKFL shall peruse the application form along with the additional documents so submitted by the Applicant(s), and if the same is to the satisfaction of SKFL, SKFL shall provide sanction letter to the Applicant(s) outlining the key terms and conditions with respect to the Facility (“Sanction Letter”) and thereafter shall execute a formal loan agreement between SKFL and the Applicant(s) for availing the said Facility (“Loan Agreement”). The Application Form, Sanction Letter, the Loan Agreement, and such other document executed with respect to the Facility shall collectively be referred to as Transaction Documents.

Please be notified that the Company is registered as composite Corporate Agent with the Insurance Regulatory and Development Authority of India (“IRDAI”), and accordingly may provide several options of various insurance products to the Applicant(s). To ensure that the Applicant makes an informed decision, the Company shall explain the features, benefits, premium, exclusions, and terms & conditions of such insurance products. It is also clarified that there shall be no linkage between the financial Facility being availed and the insurance product purchased, if any. The final decision in this regard shall be made by the Applicant(s)' voluntarily at his/hersole discretion, after having fully understood the features, terms, conditions and the suitability of the product. The Company hereby advises the Applicant(s) that in case he/she is coerced, forced or induced in this regard in any manner whatsoever, or if any commission/reward is offered for purchasing any insurance product, by any of the employees, representatives, etc. of the Company, then the Applicant(s) must immediately notify the Company by connecting with the customer support/service desk, the details of which are displayed on the website.

II. AT THE TIME OF LOAN APPLICATION:

The Applicant(s) wishes to apply for a loan as mentioned in the form. The Applicant(s) confirms that information given in the application form is true, correct, genuine, to the best of my knowledge and belief, and complete in all aspects, in accordance with their valid government identity proof and the SKFL can use the information for legitimate purpose, as may be required and permitted under the regulatory and statutory guidelines, such as for the purpose of disclosure to authorities and law enforcement agencies, reporting to agencies as prescribed. The Applicant(s) declares that no information has been withheld and/or suppressed in any form. The Applicant(s) hereby understand that the Applicant(s) may, at any time review or withdraw the said consent for processing of personal data by connecting on the customer service desk at 1800 103 9039, or raising a request on www.skfin.in. The Applicant(s) also understand that withdrawing the consent may affect continuance of the facility availed by the Applicant(s). Further, the Applicant(s) understand that such withdrawal of consent shall not affect the lawfulness of processing of personal data based on consent before its withdrawal. The Borrower undertakes to inform/intimate SKFL immediately of any change(s), update(s) in the information provided to SKFL, including but not limited to any change in email/address/contact number, or occupation/employment/constitution. In case any of the above information/details is/are found to be false or untrue or misleading or misrepresenting. The Borrower is aware that he shall be held liable for it and the SKFL may take such necessary action as it deems fit. The Applicant(s) further consent and confirm that the Company may, if it so requires, validate and/or authenticate the details submitted by the Borrower, from other sources, such as government portals and/or websites, etc. The Applicant(s) also acknowledges and agrees that the grant of facility/loan shall be subject to compliance by the Applicant(s) of the terms and conditions set out in the loan application form, sanction letter and information displayed on the website of the Company. The Applicant(s) also understands that these Terms and Conditions mentioned/ updated from time to time on the website of the Company shall prevail. The Applicant(s) further agrees that their loan shall be governed by the terms and conditions of the Company that are in force and may be amended by the Company from time to time. The Applicant(s) certifiesthat the Applicant(s) is/ are a citizen(s) and resident(s) of India and is not recognized/ defined as Non-Resident Indian (NRI) under any applicable laws or regulations. The Applicant(s) understands that the Company reserves the right to retain the documents submitted (if any) with the link and will not return the same to the Applicant(s). With respect to such documents being retained by the Company, if any, please note that such document shall not be further processed and/ or used by the Company for any purposes which are not in consonance with the applicable laws. The Applicant(s) understands that sanction of loan is at the sole discretion of the Company and the Company may reject the loan application without providing any reasons. The Applicant(s) reserve no right to appeal against this decision of the Company. The Applicant(s) further authorises the Company and/or its associates/subsidiaries/affiliates to verify any information of office/residence of the Applicant(s) and/or family members and/or employer/banker of the Applicant(s) and/or to do any such acts as they deem necessary and is permissible under the regulatory guideline or law in force. The Applicant(s) further agrees that the Company may disclose any information relating to the Applicant(s) (including personal details, account status, and default committed by the Applicant(s)) to CKYC/CERSAI, NeSL, CIC, RBI and/or any regulatory/statutory authority under the law in force. The Applicant(s) understands and agrees that the processing fee/ login fees and documentation charges is paid by Applicant(s) and are non-refundable and non-adjustable with any other fee(s) and/or charge(s) taken by the Company and shall be charged separately. In case the application is rejected by the Company for any reason whatsoever, or if the same is withdrawn by the Applicant(s) the Company may also levy a cancellation fee in the event of loan cancellation

The Applicant(s) also understands that any payment during the tenure of the loan has to be made directly to the Company in its account, and that receipt for cash payment shall be obtained and it shall be the sole responsibility of the Applicant(s) to obtain such receipt.

The Applicant(s) is aware that the following information/documents shall be required in order to process the loan application;
• Proof of existence and proof of address need to be submitted by entities as per the https://strapi.skfin.in/uploads/List_of_KYC_Documents_4ef659570e.pdf.;
• Proof of identity and address proof: Passport/voters ID/Driving License/Aadhar Card or proof of possession of Aadhar (on a Voluntary basis);
• PAN/ Form 60 to be mandatorily submitted; PAN is mandatory for Company, Partnership, LLP and HUF;
• Latest photographs of all the Applicant(s), authorised signatories and guarantor;
• Date of Birth Proof: Driving License/PAN Card/ Passport copy/ Birth certificate/ 10th mark sheet bearing date of birth;
• Bank statements: Latest statements/ Bank passbook (updated within 90 days);
• Documents related to income and expenditure, documents related to any other loan, if taken;
• Any other documents related to Applicant(s) credit assessment as required by the Company.

The Applicant(s) declares that the Applicant(s) does not hold the Company or its agent(s) responsible for delivery/ colour/make performance of the assets applied for under the application. The Applicant(s) understand that the interest rate will be charged depending upon the prevailing interest rate and the risk profile of the Applicant(s) as assessed by the Company, loan tenor, loan product, etc., and may vary from customer to customer. For further details, the Applicant(s) shall refer ‘Policy on determining of Interest rate, processing fees & other charges’ as displayed on the website of the Company Microsoft Word - Policy on Determining Interest Rates Processing and Other Charges on delay in repayment of interest and/ or any other repayment by the Applicant(s) beyond the repayment due date, the Company shall be entitled to charge Late Payment Charges, interest rate, schedule of charges, prepayment charges, fees and such other charge as may be intimated by the Company to the Applicant(s) from time to time, along with the reason thereof. The Applicant(s) also understands that the repayment shall be made in accordance with the repayment schedule that shall be provided with the sanction letter/ loan agreement, and in case of any further details, the Applicant(s) may refer to the Company website. The Applicant(s) understand that the Company may modify the charges at any time during the tenure of the loan prospectively after providing intimation to the Applicant(s) through SMS/ Email/ Letter/ Website. The Applicant(s) hereby confirms and declares that the Applicant(s) is neither related to any of the directors of the Company, nor are his/her relatives as defined under the Companies Act, 2013 and Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended from time to time. In case any such relation exists, the Applicant(s) undertakes to disclose the same in the application form for availing the Facility. The Applicant(s) declares and confirms that no litigation/insolvency proceedings and/or suit for recovery of outstanding dues or monies whatsoever nature and/or for attachment of the assets and/or properties and/or proceedings have been field/initiated and/or are pending against the Applicant(s) by any company, individual or others and that the Applicant(s) has never been adjudicated insolvent by any court or any other authorities. The Applicant(s) further declares that no proceedings have been filed against the Applicant(s) for winding up, dissolution, administration or re-organisation, or for the appointment of a receiver, trustee or such similar officer.

The Applicant(s) hereby confirms and duly undertakes that the loan availed will be utilized by the Applicant(s) for the purposes as specified to the Company. The Applicant(s) also confirms that the loan is not being used for any antisocial activities or speculative activities, investment in stocks and shares, or any purpose linked to capital market activities, or for purposes not permitted by law. The Applicant(s) may receive information/series etc., for marketing purposes through Telephone/SMS/mobile/WhatsApp/emails by the Company and its agent. The Applicant(s) has no objection if Company sends promotional call/SMS/WhatsApp/ on their mobile number/email. The Applicant(s) also hereby confirm, consent and permit the Company to contact the Applicant(s) between 07:00 A.M. – 0900 P.M. for telephonic verification purposes, providing updates (if any) credit assessment and due diligence, facilitating expedited processing and sanctioning of the loan application Further the Applicant(s) understand that in case the Applicant(s) wish to withdraw the aforesaid consent, the Applicant(s) can do so by contacting the Company’s customer service desk. The Applicant(s) hereby consents to receive information from central KYC registry through SMS/email on the above registered email address/ mobile number. The Applicant(s) hereby confirm that the acknowledgement receipt for submission of application form has been received by the Applicant(s). The Applicant(s) understands that the loan application shall be disposed of within 15 days after submission of prescribed documents by the Company. The Applicant(s) shall ensure updation of his/her contact information like address, email ID and mobile number with the Company to ensure that all information/ updates relating to their loan account/ transactions/ new product etc. are received by them. In the event of non-updation of records, the Company shall not be responsible in any manner whatsoever for non-receipt of information/ updates by the Applicant(s) and the consequences thereof. The Borrower hereby declares, confirms and consents that the Company may use the Borrower’s existing KYC details available with the Company for any additional facility granted to the Borrower, if any. The Applicant(s) hereby consent and authorise the Company to download the Applicant’s credit information report and/or such other similar reports from any credit bureaus, credit reference agencies, credit information companies or any other entity formed and authorised by RBI in such regard, during the tenure of the loan, for its ongoing due diligence purposes.

The Applicant(s) expressly confirms, consents and permits that the Company may use the personal information provided by the Applicant(s) for legitimate purpose, as may be required and permitted under the regulatory and statutory guidelines, such as for the purpose of disclosure to authorities and law enforcement agencies, reporting to agencies as required. The Applicant(s) may at any time, review or withdraw the said consent provided to the Company for processing of personal data in writing or by raising the request on CHATBOT (www.skfin.in) or connecting with Company’s customer service desk at 1800 103 9039; however, such withdrawal of consent may affect continuance of the facility availed by the Applicant(s). Further, the Applicant(s)) understand that such withdrawal of consent shall not affect the lawfulness of processing of the personal data based on consent before its withdrawal.

III. KEY TERMS AND CONDITIONS PERTAINING TO THE FACILITY.

(a) The Applicant(s) shall enter into a formal agreement pertaining to the Facility wherein the Applicant(s) shall confirm and bind itself with various terms and conditions with respect to the Facility such as, disbursement of facility, interest & amortization, prepayment, fees and operating expenses, taxes, security and insurance, increased cost, cross liability, covenants and representative and warranties of Applicant(s), event of default, set-off, indemnity, disclosure of information, confidentiality etc. Sanction Letter shall form a part of this formal agreement and all terms and conditions relating to the Facility stipulated in the Sanction Letter shall be construed as a terms and conditions contained in this agreement. However, in the event of any conflict between the terms of the Sanction Letter and the agreement, the agreement shall prevail. In the event of any disagreement or dispute between the Company and the Applicant(s) regarding the materiality or reasonableness of any matter, the opinion of the Company as to the materiality shall be final and binding on the Applicant(s)

(b) The processing fee and such other fees and charges as specified in the Transaction Documents in relation to the Facility are non-refundable in nature. All such charges shall become payable on/before the due date as stipulated in the Sanction Letter and/or Loan Agreement.

(c) The interest at the rate as prescribed in respective Transaction Documents executed with the parties to the Facility shall be charged on the overdue amount for payment delayed beyond the due date of instalment.

(d) The change in interest rate and charges shall become effective prospectively from each date of such change or at a later date as agreed by SKFL.

(e) The Applicant(s), on the request of the Company, shall obtain loan suraksha policy to secure the loan during the term of this Agreement.

(f) Disbursement: The disbursement of the Facility shall be subject to the performance by the Applicant(s) of all the conditions precedent as stipulated in the respective facility documents. All payments to be made by SKFL to the Applicant(s) shall be made by NEFT/ RTGS or by cheques/demand drafts or any other mode as agreed at the time of execution of transaction documents. The collection charges, if any, in respect of all such payments shall be solely borne by the Applicant(s). The Disbursement made to the Applicant(s) shall be deemed to be effective, and the interest on the Facility will begin to accrue, from the date of actual disbursement of the Loan/Facility in case loan is disbursed through electronic mode, and/or from the date of handover of the cheque/draft/pay order and the like to the Borrower(s), where the disbursement is made through cheque/draft/pay order and the like, as the case may be. In the event of cancellation of loans at the behest of the Applicant(s) or due to insufficiencies identified in the details submitted by the Applicant(s), the Company shall have the right to levy cancellation charges on the Applicant(s) due to the cost incurred by the Company and SKFL may at its discretion waiver or set-off any processing fees received from the Application(s) against the applicable cancellation charges. The Company shall be entitled to deduct charges that are paid / to be paid by the Company on behalf of the Applicant(s), including but not limited to the insurance premium, stamp duty etc. Further, the Applicant(s) understand that the insurance premium payable towards insurance will be part of the loan amount sanctioned and shall be repayable as part of the EMIs in accordance with the Company’s repayment schedule provided in the KFS. The Company may at its discretion waive or set-off any processing fees received from the Applicant(s) against the applicable cancellation charges.

(g) The Borrower hereby consents and authorises the Company to download his/her credit information report and/or such other similar reports from any credit bureaus, credit reference agencies, credit information companies or any other entity formed and authorized by RBI in such regard, during the tenure of the loan, for its ongoing due diligence purposes. The Applicant(s) do hereby agrees and consents, as a pre-condition relating to the grant of Facility, that, in case the Applicant(s) commits any default in the repayment of any of the outstanding amounts, the Company and/or RBI shall have unqualified right to disclose and furnish information to Credit Information Companies (CIC), CKYC, CERSAI, NeSL, CRILC and other agency so authorized by regulatory/statutory body, Applicant(s) name as defaulter in such manner and through such medium as the Company or RBI in their absolute discretion may think fit. Notwithstanding the above, the Applicant(s) understands that as a precondition relating to grant of the Facility to the Applicant(s), the Company requires the Applicant(s)’s consent for the disclosure by the Company of information and data relating to the Applicant(s), of the Facility availed of /to be availed by the Applicant(s), obligations assured/ to be assured by the Applicant(s) in relation thereto and default, if any, committed by the Applicant(s) in discharge thereof. Without prejudice to the aforesaid, the Applicant(s) hereby confirms, agrees and gives consent:
(i) To disclose such information for the purposes of credit reference checks, verification, assignment, etc. disclose any information/documents relating to the Applicant(s) (pertaining to the Facility availed by the Applicant(s)) to any third party appointed by it. The Applicant(s) further authorizes the Company to disclose said information /documents to RBI, income tax authorities, credit bureau, third parties, credit rating agencies, databanks, corporates, banks, and financial institutions or any other government or regulatory authorities, statutory authorities, quasi-judicial authorities.
(ii) To publish the name of the Applicant(s) and/or the names of its directors as defaulters with or without the photograph in any local/regional/national newspaper/magazine etc. and/or through electronic medium which includes publication on the website etc. and/or in such other manner and through such other medium as the Company/RBI may in their absolute discretion think fit.
(iii) The Company shall also have the authority to seek and/or receive any information as it may deem fit in connection with the Facility and/or the Applicant(s) from any source or person or entity to whom the Applicant(s) hereby authorizes to furnish such information.
(iv) The Company shall register the details of Applicant(s), in case of Applicant(s) being a non-profit organisation, on the DARPAN Portal of NITI Aayog, if not already registered, and maintain such registration records for a period of five years after the business relationship between the Applicant(s) and the Company has ended or the account has been closed, whichever is later

(h) Return/Destruction of SPDCs/PDCs: SKFL shall immediately return/destroy old SPDCs/PDCs as received from the Applicant(s) or any parties to the Loan Agreement, and which are in the custody of SKFL in the following conditions: (i) When the relationship status of the Applicant(s) with the SKFL is closed (for instance, in case of loan foreclosure, repayment of loan, loan maturity, etc.) or (ii) When the NACH of the Applicant(s) is activated. There shall not be any liability on SKFL to return the SPDCs/ PDCs obtained from the Applicant(s) as a part of the facility obtained by the Applicant(s) from SKFL.

(i) The Applicant(s) shall ensure that all payments made through digital payment platforms shall be made by Applicant(s) from their own account in line with the AML norms as prescribed. In the event the repayment is made by a third party, it shall be the sole ownership and responsibility of the Applicant(s) or other parties to the Loan Agreement to duly inform SKFL, and Applicant(s) undertakes to complete all documentation formalities as requisitioned by SKFL.

(j) Repayment: The loan is to be repaid in instalments as agreed to in the Transaction Documents over the tenure of the loan. The repayment of instalment commences from the date specified in the Transaction Documents. Instalment amount would comprise principal and interest, which are payable in Equated Monthly Instalment (EMI) as set out in the Transaction Documents. Accordingly, the Applicant(s) must ensure:
• To keep sufficient funds in the designated account 2-3 days prior to due date of EMI.
• The Applicant(s) should not (a) issue stop payment instructions for any cheque issued towards EMI payment or close/change the bank account in which the repayment instruments are drawn; (b) cancel or vary any payment arrangement (unless required by SKFL).
• The Applicant(s) agrees, acknowledges and confirms that the PEMII (if any) along with interest and other amount shall be paid in time and at its sole responsibility. The Applicant(s) further confirms that the Applicant(s) has provided cheques to the Company and provides its consent that the Company may use the same as security payment cheques, for repayment and/or PEMII (if any), as the Company deems fit. To this effect, the Applicant(s) shall not make the Company liable in any manner whatsoever. Time is the essence for performance of parties’ obligations. Prepayment/foreclosure shall mean closure of loan before maturity of the loan and charges shall be applicable on prepayment shall be applicable in all cases where the Applicant(s) has closed the loan prior to the maturity of the Facility. Prepayment shall mean repayment of the entire Outstanding Amount to the satisfaction of SKFL prior to the tenure of the loan, as agreed under the Transaction Documents and SKFL shall levy prepayment/foreclosure charges for such cases. The prepayment shall take effect only when cash has been received or SI/ECS/cheques/NEFT/ RTGS/ NACH have been cleared/ credited and the Applicant(s) has repaid the amount prior to maturity of the tenure of the loan, the Company shall levy the prepayment charges as mentioned in the schedule of charges and the interest shall be accordingly charged only for such period for which the loan was outstanding. In such regard, the Applicant(s) shall not make Company liable for such charges levied by the Company. • The Parties hereby agree and confirm that if the Applicant(s) defaults in repayment of the Facility, the same shall be construed as non-compliance with the material terms and conditions of loan repayment and shall be deemed to be an Event of Default under the loan agreement. In such case, the Company is fully authorized to levy penal charges for such default by the Applicant(s). The Company shall charge interest on Amount Due (overdue EMI) at the contracted rate of interest till such default is cured by the Applicant(s). In addition, thereto, the Company shall also levy Late Payment Charges for such default in accordance with the terms mentioned in the loan agreement in relation thereto from the date of default till the date of payment to the satisfaction of the Company. The Parties hereby agree that in case the Applicant(s) fails to submit any documents as informed/mandated by the Company from time to time, including but not limited to RC, Insurance, Property Documents, NOC/ NDL (in case of BT), Security Documents, then the Company may, at its sole discretion and as it may deems fit, hold the disbursement of up to 20% of the total amount sanctioned to the Borrower. However, no interest shall be levied on the aforesaid portion of the sanctioned amount which is so withheld by the SKFL. Additionally, the Company may levy a charge, at its discretion, as per schedule of charges (as updated on the website from time to time) a charge for non-submission/ delayed submission till all the documents are submitted to the satisfaction of the Company. Thereafter, the Company shall disburse the aforementioned remaining amount within 7 days from the receipt of all such documents by the Company. The Company may adjust any charges incurred during the non-submission period on actuals as incurred by the Company on behalf of the borrower for obtaining such documents to ensure that the loan granted is secured.

(k) Security (wherever applicable): The Applicant(s) shall maintain in favor of SKFL, a valid and enforceable first and exclusive security interest on the property and all proceeds receivable by the Applicant(s) at any point of time, or any other right or interest arising from or in connection with the property/security. All the security documents of the Applicant(s) shall be deposited with SKFL and it shall have paramount rights/lien over such documents. The Applicant(s) agrees and confirms that the Company may, at its sole discretion, till the entire repayment of amount due, withhold the no objection certificate, security related document or the like in case either loan(s)/ facility(ies) is closed by the Applicant(s).
Any Security(ies) furnished by the Applicant(s) for the Loan Agreement executed shall also be collateral for any other obligations owing by the Applicant(s) to SKFL.

(l) The Company shall release NOC and all original documents to the Applicant(s) within 30 days after closure of loan, i.e. the date on which the loan(s)/facility(ies) account is closed in the records of the Company and to the satisfaction of the Company and the responsibility of release of charges (if any) registered with any authority and ensuring security is free from any encumbrances shall be of the Applicant(s). The Applicant(s) shall have an option to either collect the said original documents with respect to the security from the branch where the loan account was serviced or any other office where the documents are available. In the event the Applicant(s) does not provide any option or is non-contactable, the Company may at its discretion send across the NOC to the branch of the Applicant(s) and provide an intimation to collect the NOC. The Applicant(s) understands that the Company may retain the security documents in the event when the property of the Applicant(s) has been collateralised against another loan availed by the Applicant(s) or any other reason which shall be duly communicated by the Company to the Applicant(s) through digital means of communication on the address/ number available with the Company in its records. The Applicant(s) agrees that the Company may not dispatch the security (Property) documents at the address prescribed by the Applicant(s) as there are security issues and the Company shall hand over the document to the Applicant(s) in person through its representative. In case if any support in this regard is required by the Applicant(s), they can connect with the customer support/service desk of the Company at the details displayed on the website www.skfin.in. The Applicant(s) understands that it shall be the Applicant(s)’s responsibility to ensure that correct/ updated contact details such as address, mobile number. Email ID etc. are available with the Company. The Applicant(s) further understands that the Company shall not be responsible in any manner whatsoever if the Applicant(s) does not receive the communication due to inaccurate contact details updated in the Company’s records

(m) In accordance with the applicable law(s) as amended or modified from time to time, where the Applicant(s) is a company or LLP, the Applicant(s) shall ensure registration of charges with the relevant Registrar of Companies within requisite timelines.

(n) Disclosure: (i) SKFL is authorized to disclose from time to time any information relating to the loan to any credit bureau (existing or future) approved by Government of India and/or RBI without any notice to the Applicant(s). SKFL is also authorized to make inquiries with any Credit Bureau and get the applicant’s Credit Information Report. Terms mentioned herein are subject to change without prior notice. The Applicant(s) further acknowledges that SKFL is authorized to share/disclose information (a) relating to the Applicant, including information relating to any default committed by the Applicant(s) in discharge of their obligation or otherwise; (b) to such credit bureaus/ credit reference agencies. Such entities may further make available processed information or data or products thereof to banks/financial institutions and other credit grantors. SKFL also provides information relating to credit history/repayment record of the Applicant(s) to a credit information company (specifically authorised by the RBI), in terms of the Credit Information Companies (Regulation) Act, 2005. (ii) The Applicant(s) hereby gives specific consent to SKFL for disclosing/submitting the 'financial information' as defined in Section 3(13) of the Insolvency and Bankruptcy Code, 2016 ('Code') read with the relevant Regulations/ Rules framed under the Code, as amended and in force from time to time and as specified there under from time to time, in respect of the Credit/ Financial facilities availed from SKFL, from time to time, to any 'Information Utility' ( 'IU') as defined in Section 3(21) of the Code, in accordance with the relevant Regulations framed under the Code, and directions issued by RBI to the NBFCs from time to time and hereby specifically agree to promptly authenticate the 'financial information submitted by SKFL, as and when requested by the concerned 'IU'.

(o) Any default pursuant to these Terms and/or the terms of the Agreement (whether demand for repayment is actually made or not) then and in such case and at any time thereafter, SKFL through its officers, agents or nominees shall have the right (without prejudice to the right under the Loan Agreement) to take any one or more than one of the following actions without the specific intervention of a court or any court order:
(I) with a notice period of 15 days/without any notice and assigning any reason and attire risk at expense of the Applicant(s) and if necessary as attorney and in the name of the Applicant(s) to take charge and/or possession of, seizure, recover, appoint receiver of and remove the hypothecated asset, if any. SKFL will be within its rights to use a tow-van to carry away the hypothecated asset/ and/or;
(II) enter into or upon any place or premise where the hypothecated asset may be kept or stored and inspect, value or insure the same at the costs and expenses of the Applicant(s); and /or,
(III) with prior notice through any specified mode of communication, sell by auction or by private contract or tender, dispatch or consign for realization or otherwise dispose of or deal with the hypothecated asset in the manner SKFL may think fit;
(IV) proceed to take possession of the collateral security and exercise powers to make auction of the same for realizing the due amount of SKFL;
(V) Notwithstanding the aforesaid SKFL on occurrence of any one of the following events shall be entitled to repossess the hypothecated asset without providing any notice or intimation to the Applicant(s):
a) In case any fraudulent activity is done by the Applicant(s) or any other person in relation to the hypothecated asset and/ or loan under the loan agreement which in the opinion of SKFL is prejudicial to the interest of SKFL.
b) If the hypothecated asset is sold to the third party.
c) If the Applicant(s) has expressed his willingness to surrender the possession of the hypothecated asset voluntarily.
d) If there is reasonable apprehension to SKFL or its officers/ agents that such notice may defeat the taking of possession of the hypothecated asset due to any foul play or forcible resistance from the part of the Applicant(s).
e) If the hypothecated asset is used in unlawful activities.
(VI) SKFL shall have provided one final chance to the Applicant(s) for repayment of all outstanding amounts before sale/ auction of the hypothecated asset except in cases where the sale/ auction of the hypothecated asset is pursuant to any proceedings before any judicial, quasi-judicial or governmental authority or arbitrator.
(VII) SKFL will return the hypothecated assets to the Applicant(s) provided all the outstanding amounts and other SKFL dues are cleared in full to the satisfaction of SKFL or as otherwise agreed by both parties. If satisfied with the genuineness of Applicant(s)’s inability to pay the EMI as per the repayment schedule detailed in the Loan Agreement which resulted in the repossession of hypothecated assets, SKFL may, at its discretion, consider handing over the hypothecated assets after receiving the EMI in arrears. However, the same would be subject to SKFL being convinced of the arrangements made by the Applicant(s) to ensure timely repayment of EMI in the future.

(p) Know Your Customer/Due Diligence Requirements: In line with the requirements of SKFL policy, the Know Your Customer (KYC) documents along with other documentation need to be submitted at the time of applying for a loan or as and when requested by SKFL. The Applicant(s) is fully aware of the KYC requirements applicable on SKFL from RBI and confirms that the information/ clarification/ documents/signage provided by it on its identity, address, authorized signatory, board resolution, PAN and all other material facts are true and correct and the transaction, etc. are bonafide and as per law. The Applicant(s) further confirms that it has disclosed all facts/ information as are required to be disclosed for adherence and compliance with the provisions related to the KYC Policy. The Applicant shall be solely responsible for updating their mobile number, address, email ID, etc. The Applicant(s) hereby consents to provide to the Company, any additional information required from the Applicant(s) as deemed fit by the Company which has not been specified in the internal KYC Policy of the Company, in order to conduct its credit due diligence. The Applicant(s) hereby confirms that the Company can seek/ download the records of the Applicant(s) from the CKYC registry for KYC compliance and periodic updation during the tenure of loan. The Applicant(s) consents to Company to use the Applicant(s)’s CKYC number available in the Company’s database for conducting periodic review/ enhanced due diligence or for updating the records of the Applicant(s). SKFL reserves the right to recall the Facility, enforce the Security and guarantees, if any, and appropriate proceeds thereof towards the outstanding and recover the balance from the Applicant(s), if any or close the account in case the required documents are not provided by the Applicant(s) to SKFL. The Company hereby advises the Applicant(s) that in order to comply with the PML Rules, in case of any update in the documents submitted by the Applicant(s) prior to and/or at the time of execution of the Loan Agreement and thereafter, as necessary, the Applicant(s) shall submit to the Company the update of such documents. This shall be done at the earliest but not later than 30 days from the update to the documents for the purpose of updating the records at Company’s end. The Applicant(s) hereby gives his consent to the Company to retrieve the updated KYC records of the Applicant(s) from the Central KYC Records Registry from time to time in accordance with the PML Rules, and also allows the Company to update the Company’s own KYC records being maintained for the Applicant(s).

(q) The Applicant(s) shall keep and maintain in accordance with good business practice and applicable laws, all statutory books, books of accounts, bank statement/pass books and other records of the Applicant(s) and in particular, maintain records showing the operations and financial conditions of the Applicant(s) and such records shall be open to examination by the Company and/or its authorized representatives and the Applicant(s) shall if so required by SKFL, furnish to SKFL at such intervals as SKFL may request a schedule or copy of all entries which shall have been made in the said registers. The register shall clearly indicate which of the security/assets have been hypothecated/ mortgaged/pledged or otherwise charged to the Company or to any other person/ entity.

(r) Governing Law and Jurisdiction: All documents executed in relation to the Facility shall be governed by and construed in accordance with the laws of India. The Parties hereto expressly agree that all disputes arising out of and/or relating to the Transaction Documents including any collateral document shall be subject to the exclusive jurisdiction of a competent court as mentioned in respective Transaction Documents.

(s) Dispute Resolution: The Applicant(s) is aware that under the circumstances of any dispute which may arise between the Applicant(s) and SKFL, either directly or indirectly, shall be referred to or settled as per the terms and conditions under the Dispute Settlement Mechanism as may be separately agreed and executed between the Applicant(s) and the Company in writing, wherever applicable. In any other circumstance all matters, questions, disputes, default, difference and or claims arising out of and/or concerning and/or in connection and/or in consequence of breaches, termination or invalidity thereof, whether or not obligations of either or both, SKFL and the Applicant(s), be subsisting at the time of such dispute and whether or not the Transaction Documents have been terminated or purported to the terminated or completed shall be settled by arbitration in accordance with the provision of Arbitration and Conciliation Act, 1996 or any statutory amendment thereof which shall be presided over by an arbitrator in accordance with the Transaction Documents. The language to be used in the arbitral proceedings shall be English and the award of the arbitrator shall be final and binding on both, SKFL and the Applicant(s). The seat of arbitration shall be as specified in the respective Transaction Document.

(t) Fees, charges, costs and claims: All costs (including advocates Legal cost), charges, expenses, applicable taxes, valuation charges, CIC charges, CERSAI charges, duties (including stamp duties), registration charges or any other charges in connection with the Transaction Documents, any document executed pursuant hereto and the creation enforcement, realization or attempted realization of any security insuring and taking possession of, maintaining storage and selling of the any asset shall be incurred and paid by the Applicant(s) alone. Applicant(s) shall reimburse the same at the actual to SKFL within 24 hours of SKFL’s demand. SKFL shall also be entitled to recover from the Applicant(s) any other charges or costs incurred, or claims suffered by SKFL in connection with the Facility, including on account of execution, stamping of the Loan Agreement and any other documentation or security creation pursuant to the Transaction Documents. If at any time hereafter it is found or required that any extra stamp duty is payable on any of the Transaction Documents and/or if it is ascertained that stamp duty at a rate higher than the duty presently paid on said Transaction Documents are payable/required to be paid, then the Applicant(s) shall immediately pay the same with penalty and interest (if any). Upon failure to pay the same, such amount shall form part of the amount due under the Loan Agreement.

(u) Conditions Precedent: SKFL shall make any disbursement under the Facility subject to the fulfilment of the following conditions:
(i) The Applicant(s) meeting SKFL’s requirement of creditworthiness. SKFL shall be entitled to make or cause to be made market inquiries or Credit Bureau checks of such nature as it may deem fit in this regard and, further, it shall be entitled to call for such credentials from the Applicant(s) as may be required.
(ii) The Applicant(s) are in compliance of all the terms and conditions under the Transaction Documents, and there exists no default or breach under the Sanction Letter, Loan Agreement or any circumstance which may make it improbable for the Applicant(s) to fulfil his/her/their obligations under the Transaction Documents.
(iii) In relation to the Applicant(s), absence of any pending, ongoing or threatened proceedings which, if adversely determined, may have an adverse effect on: (i) the ability of the Applicant(s) to comply with the Facility Documents, or (ii) the interests of SKFL.
(iv) Execution, filing, registration and delivery, by the Applicant(s), of all Facility Documents in the form, manner and substance acceptable to SKFL.
(v) If required by SKFL or under any law provision of such evidence as may be acceptable to it, the Applicant(s) to satisfy SKFL: (i) about the utilization of the proceeds of the prior disbursements (if any) under the Facility, and (ii) that the disbursement is required for and shall be utilized only for the purpose for which the Facility is sanctioned. (vi) To avail the Facility from SKFL, the Applicant(s) assures to SKFL that the Applicant(s) has complied with all the provisions of the act applicable on the Applicant(s) and till date the Applicant(s) has, neither directly nor indirectly, breached/ contravened any provisions under the applicable law, statute or regulation or any judgment or decree to which any of the Applicant(s) and/or business and/or its undertaking is subject.
(vii) The Applicant(s) shall notify SKFL of any change, including and not limited to the following, occurred between the date of loan application and the date of disbursement of Facility, and even otherwise, within 15 (fifteen) days of such change.
a. Make any change in the residential and official status of the Applicant(s) or occupation/ business of the Applicant(s) or in the details of the relatives in the Applicant(s)’s entity or any adverse circumstances connected with the financial position of the Applicant(s) and/or any adverse change with regard to the security or title thereto (however unimportant the Applicant(s) may consider the same);
b. Make any change in the constitution, management or existing ownership, shareholding pattern or control or share capital of the Applicant(s).

(v) Non-cooperative Applicant(s)s:
(i) The Applicant(s) agrees to fully cooperate and comply with the terms and conditions provided under the Loan Agreement and other ancillary documents in congruence with the Facility availed by the Applicant(s) from SKFL. In the event, the Applicant(s) fail to cooperate and fulfil the obligations pursuant to the terms and conditions under the Loan Agreement, SKFL shall deem the Applicant(s) as Non-Cooperative Applicant(s).
(ii) SKFL shall on failure to repay the outstanding dues under the Facility by the Applicant(s) after repeated reminders (written/verbal) by SKFL, classify the delinquent Applicant(s) who have not paid their dues for 90+ days as NonCooperative Applicant(s) in SKFL’s database. SKFL shall send a notice in writing on 60 DPD (“Days Past Due”) in the Applicant(s)’s account to such delinquent Applicant(s) in physical/digital mode to provide justification for not responding appropriately to the reminder(s) received, before their names are tagged as Non-Cooperative Applicant(s). After receipt of the notice by the delinquent Applicant(s), if adequate reasoning is not provided by such Applicant(s) or the overdue amount is not paid off in entirety in accordance with the Income Recognition and Asset Classification Norms, the Applicant(s) shall be classified as Non-Cooperative Applicant(s) and the same shall be intimated to such Applicant(s) by SKFL.
(iii) SKFL may in its sole discretion change such classification of Applicant(s) as a Non-Cooperative Applicant(s) and the Applicant(s) shall not remain as a Non- Cooperative Applicant(s) upon upgradation of Applicant(s)’s account, however no intimation for such upgradation shall be sent across to the Applicant(s) by SKFL.

(w) Regulatory Declarations (in case Applicant(s) is a company): The Applicant(s) shall declare that none of its directors is a director/senior officer of a director/senior officer of a banking company, or in a specified near relation of a director/senior officer of the Company. Except to the extent disclosed to SKFL, all the Applicant(s)'s contracts or agreements with, or any commitments to, any affiliates or group companies (if applicable) are on an arm's length basis. Further, no director of SKFL is a director, manager, managing agent, employee or guarantor of the Applicant(s)/its subsidiary/holding company, or holds substantial interest, in the Applicant(s)/its subsidiary/holding company and no directors of any other Company, including directors of scheduled cooperative bank and directors of subsidiaries/ trustees of mutual fund/venture capital funds holds substantial interest or is interested as director or as a guarantor of the Applicant(s). The Applicant(s) or any directors/ promoters/ associates concerns/ of any of the Applicant(s) (including the Guarantor) are not and, to the best of their knowledge:
i. on the Export Credit Guarantee Corporation's (ECGC's) specified approval list; or
ii. convicted under the provisions of Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974; or
iii. on RBI's wilful defaulters/ caution list; or
iv. on the Company's defaulter list; or
v. or not qualified to act as director in accordance with applicable Law.
In case where the above negative confirmations/ declarations are not true, then the Applicant(s) shall provide a written declaration with details of such relationship to SKFL. If the details of such declaration change during the term of the Facility, then the Applicant(s) shall promptly provide a written declaration to SKFL of any such changes.

(x) The Applicant(s) shall provide information to SKFL in case any subsequent credit facility is availed by them from any other lending institutions. The Applicant(s) shall provide information to SKFL in case any additional credit facility is availed/has been availed by them individually or as a “group” from the Company. “Group” shall mean loan availed by various relatives (as defined under the Companies Act, 2013) or in the name of various entities within the Group such as company, partnership, trust, society, special purpose vehicle, mutual funds etc. and includes Guarantors as well.

(y) The Applicant(s) shall not be entitled to cancel the Facility or refuse to accept the disbursement of the Facility, except with the approval of SKFL and on payment to SKFL, of such cancellation charges as mentioned in Schedule of Charges. However, SKFL shall have the right to terminate, at any point in time, all and/or any undrawn part of the Facility by giving notice to the Applicant(s).

(z) It shall be the responsibility of the Applicant(s) to ensure that the insurance policy with requisite endorsement in favor of SKFL is submitted to SKFL. Additionally, in the event of prepayment/foreclosure of loan prior to term of the loan, the Applicant(s) shall be liable to liaise with the respective insurance company to surrender the insurance policy submitted to the SKFL.

(aa) In the light of RBI Circular dated November 12, 2021 bearing reference no. RBI/2021-2022/125 DOR.STR.REC. 68/21.04.048/2021-22, SKFL has displayed on the website the regulatory requirements, example along with terms, for the customers, the process of categorization of the loan account as NPA i.e., Non-Performing Asset and SMA i.e., Special Mention Account.

(bb)The Applicant(s) hereby acknowledges and understands that in the event of any suspicion and/or indication of commission of any wrongdoing and/or fraudulent activity(ies), the Company may, at its behest and sole and absolute discretion, engage with an external auditor or conduct an internal audit for identification, detection and investigation of such wrongdoing and/or fraudulent activity(ies), and the Applicant(s) undertakes to extend his prompt and full cooperation in relation to such audit as and when may be required by the Company. Further, in the event that pursuant to such audit, the audit report received by the Company is inconclusive, and/or is delayed as a consequence of non-cooperation by the Applicant(s), the Company shall be entitled to proceed in such manner as it may deem fit and take further necessary actions, including but not limited to concluding the status of Applicant(s)’s loan account as fraud or otherwise, as the case may be, on the basis of the records and material available with the Company and the Company’s own internal investigation and assessment in such regard.

(cc) The Applicant(s) also confirms and undertakes the following;
(i) Tax Deduction at Source (TDS): As per the provisions of the Income Tax Act, 1961, the Applicant(s) acknowledges and agrees that any interest payments made on the loan may be subject to Tax Deducted at Source (TDS). The Applicant(s) shall be responsible for deducting TDS as applicable and providing the Company with the necessary TDS certificates in the prescribed form within the stipulated time frame.
(ii) GST Compliance: The Applicant(s) agrees to comply with the Goods and Services Tax (GST) laws as applicable to the loan transaction. Any GST applicable on the loan processing fees, prepayment charges, or any other fees/charges shall be borne by the Applicant(s) and paid at the prevailing rates.

(dd) For any service related issue, Applicant(s) can get in touch with SKFL as per the details mentioned in the Customer Grievance Redressal mechanism displayed on the website

(ee) The Company shall provide Key Fact Statement (KFS) to Applicant(s) with all necessary information including but not limited to details of the loan, fees, charges, APR details, recovery mechanism, details of grievance redressal officer, coolingoff period etc.

(ff) SKFL reserves the right to modify these terms and conditions at any time and update these terms and conditions from time to time. The updated terms and conditions will be effective upon posting on our Company’s Website. The Applicant(s) is responsible for understanding these terms and conditions before applying for a loan request; if Applicant(s) continues to use the Website or submit a loan request, the Applicant(s) will have agreed to the amended terms. In the event specific schedule of charges for any loan product has not been separately provided on the website of the Company, the Applicant(s) is advised to refer to the loan agreement therefor available under the disclosure tab for complete details on applicable charges.

(gg) For quick perusal by the Applicant(s), the copy of the loan agreements and these Terms and Conditions are uploaded on the website of the Company in vernacular language so that the Applicant(s) can read, understand and interpret the contents in the language known to the Applicant(s). In the event of conflict/inconsistency between the English language and any other vernacular language of the loan agreements and/ or these Terms and Conditions, the contents of English language shall prevail for all intents and purposes.

(hh) Additional Terms for Digital Lending: Applicant(s) availing loans through digital lending mode from the Company shall be provided with all the information relating to the product features, loan limit, cost so as to make the Applicant(s) aware of these aspects. In the event, the Applicant(s) intends to exit the Loan, the Applicant(s) may do so within the Cooling off period of 3 day(s) for Loan having tenure of 7 or more days and 1 day for Loan having tenure of less than 7 days, from the date of execution of the Agreement, during which the Applicant(s) may exit the Loan by giving written notice to the Company provided that the Applicant(s) shall be liable to pay the principal amount and the proportionate APR during this period. APR shall mean effective annualized rate charged by the Company to the Applicant(s). For Applicant(s) continuing with the loan even after cooling off period, pre-payment shall continue to be allowed as per extant RBI guidelines. The disbursements in such cases shall always be made into the bank account of the Applicant(s) except for disbursals covered exclusively under statutory or regulatory mandate (of RBI or any other regulator), flow of money between the Company for co-lending transactions and disbursals for specific end use, provided the loan is disbursed directly into the bank account of the end-beneficiary. The Applicant(s) shall be provided with an option to give or deny consent for use of specific data, restrict disclosure to third parties, data retention, revoke consent already granted to collect personal data and if required, make the app delete/ forget the data. The purpose of obtaining Applicant(s)’s consent shall be disclosed at each stage of interface with the Applicant(s). Explicit consent of the Applicant(s) shall be taken before sharing personal information with any third party, except for cases where such sharing is required as per statutory or regulatory requirement.

(ii) The Applicant(s) confirms that these Terms, along with the terms and conditions mentioned in the Loan Agreement shall be considered as the material terms and conditions which the Applicant(s) shall be required to adhere to before, during and after the term of the loan, as applicable. The Company may levy charges on the Applicant(s) for non-adherence to Terms hereunder, and/ or the applicable terms and conditions as defined in the Loan Agreement. There shall be no capitalization of the penal charges being charged for non-adherence herein, i.e. no further interest shall be computed on such penal charges by the Company. The Applicant(s) may refer to the updated most important terms & conditions applicable to the Applicant(s) displayed herein on an ongoing basis.

Baroda