Standard terms and conditions governing facility/loans

I. Introduction

These terms and conditions (“Terms”) form the basis of relationship between SK Finance Limited (“SKFL”) and its customers/applicants (“Applicant(s)”) and the terms on which the applicants will take financial assistance from SKFL, and participate in Facility (defined below).

Where a document has been published/executed, 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 the Applicant(s). 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 the Applicant(s) executes the Loan 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 submit complete details as may be required by SKFL for applying for the Facility.

SKFL shall be entitled at its sole and absolute discretion to reject/approve any application submitted by Applicant(s) (“Application Form”) for availing Facility. In the event of any such rejection, SKFL shall not be obligated to inform the Applicant(s), reason for such rejection. SKFL shall peruse Application Form along with the additional documents so submitted by Applicant(s), and if the same is to the satisfaction of SKFL, SKFL shall provide to the Applicant(s) a statement of key facts of the loan agreement to the Applicant(s) containing legally significant and deterministic facts that state basic information required to assist in taking an informed financial decision (“Key Fact Statement”/ “KFS”), along with sanction letter outlining the key terms and conditions with respect to Facility (“Sanction Letter”). Thereafter, a formal loan agreement shall be executed between SKFL and Applicant(s) for availing said Facility (“Loan Agreement”). Application Form, KFS, Sanction Letter, Loan Agreement, and such other document executed in relation to Facility shall collectively be referred to as Transaction Documents.

Please be notified that SKFL 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 Applicant(s). To ensure that Applicant makes an informed decision, SKFL shall explain features, benefits, premium, exclusions, and terms & conditions of such insurance products. It is also clarified that there shall be no linkage between financial Facility being availed and insurance product purchased, if any. Final decision in this regard shall be made by the Applicant(s)’ voluntarily at his/her sole discretion, after having fully understood the features, terms, conditions and suitability of the product. SKFL 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 SKFL, then Applicant(s) must immediately notify SKFL by connecting with customer support/service desk, details of which are displayed on website.

II. At the time of loan application:

The Applicant(s) who wishes to apply for a loan shall submit a properly filled Application Form and submission thereof shall constitute acceptance of the terms, conditions and other declaration specified therein. The information given in the application form should be true, correct, genuine, to the best of his/her knowledge and belief, and complete in all aspects, in accordance with their valid government identity proof and 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. No information should be withheld and/or suppressed in any form. 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, shall be promptly and at the earliest intimated to SKFL. In case any of the above information/details is/are found to be false or untrue or misleading or misrepresenting, the Applicant shall be held liable for it and SKFL may take such necessary action as it deems fit. Submission of the application form shall also be deemed as the Applicant(s)’ consent and confirmation that (a.) SKFL may, if it so requires, validate and/or authenticate the details submitted by the Applicant, from other sources, such as government portals and/or websites, etc; and (b.) the Applicant(s) is/ are a citizen(s) and resident(s) of India and is/are not recognized/defined as Non-Resident Indian (NRI) under any applicable laws or regulations. 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 SKFL. These Terms and conditions mentioned/ updated from time to time on the website of SKFL shall prevail for all matters and purposes. The loan/financial facility advanced by SKFL shall be governed by the terms and conditions of SKFL that are in force, and as amended from time to time. SKFL reserves the right to retain the documents submitted (if any) with the link and will be under no obligation to return the same to the Applicant(s). With respect to such documents being retained by SKFL, if any, please note that such document shall not be further processed and/ or used by SKFL for any purposes which are not in consonance with the applicable laws. The sanction of loan is at the sole discretion of SKFL and SKFL may reject the loan application without providing any reasons. The Applicant(s) reserve no right to appeal against this decision of SKFL. SKFL and/or its associates/subsidiaries/affiliates shall also be duly authorised 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. SKFL may also 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 processing fee/ login fees and documentation charges paid by the Applicant(s) are non-refundable and non-adjustable with any other fee(s) and/or charge(s) taken by SKFL and shall be charged separately.

Any payment during the tenure of the loan has to be made directly to SKFL in its account, and that it shall be the sole responsibility of the Applicant(s) to obtain receipt for cash payment. All repayments through digital platforms shall be made from the Applicant’s own account in line with AML norms. If any repayment is made by a third party, it shall be the sole responsibility of the Applicant to inform SKFL and provide a Source of Funds Declaration along with KYC Documents of such third party, as may be required by SKFL.

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 SKFL.

In case of vehicle loan/Facility, SKFL or its agent(s) shall not be held responsible for delivery/ colour/make/ performance of the assets applied for under the application. The interest rate will be charged depending upon the prevailing interest rate and the risk profile of the Applicant(s) as assessed by SKFL, loan tenor, loan product, etc., and may vary from customer to customer. For further details, the Applicant(s) may refer ‘Policy on determining of Interest rate, processing fees & other charges’ as displayed on the website of SKFL. On delay in repayment of interest and/ or any other repayment by the Applicant(s) beyond the repayment due date, SKFL 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 SKFL 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 Transaction Documents, and in case of any further details, the Applicant(s) may refer to SKFL website. The Applicant(s) understand that SKFL may modify the charges at any time during the tenure of the loan after providing intimation to the Applicant(s) through SMS/ Email/ Letter/ Website, and any such modification shall be made effective prospectively. The Applicant(s) shall be required to make appropriate disclosures in the Application Form and provide undertakings to SKFL in the following events:

Applicant(s) is related to any of the directors of SKFL, or is a “relative(s)” as defined under Companies Act, 2013 and Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended from time to time; or
there is any ongoing 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 against the Applicant(s), or if the Applicant(s) has been adjudicated insolvent by any court or any other authorities; or
any 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. Whenever any application is filed for initiation of insolvency resolution process under the Insolvency and Bankruptcy Code, 2016 against the Applicant(s), SKFL shall be required to be promptly intimated and kept updated in this regard by the Applicant(s).

The Applicant(s) shall ensure to utilize the Facility availed from SKFL for the purposes as disclosed and specified in the Transaction Documents, and that the loan is not 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 and/or promotional purposes through Telephone/SMS/mobile/WhatsApp/emails by SKFL and its agent. The Applicant(s), vide the Application Form, also confirms, consents and permits SKFL 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 in case the Applicant(s) wish to withdraw the aforesaid consent, the Applicant(s) can do so by contacting SKFL’s customer service desk. The Applicant(s) also consents to receive information from central KYC registry through SMS/email on the above registered email address/ mobile number. The loan Application Form shall be disposed off within 15 days after submission of prescribed documents by SKFL. The Applicant(s) shall be solely responsible to ensure updation of his/her contact information like address, email ID and mobile number with SKFL 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, SKFL shall not be responsible in any manner whatsoever for non-receipt of information/ updates by the Applicant(s) and the consequences thereof and any notice/ communication to be issued to the Applicant by SKFL shall be sent to the last recorded address available with SKFL as per its records and the same shall be deemed valid. The consents and authorisations given by the Applicant(s) to SKFL for availing any Facility, including without limitation consent to use KYC details, shall also continue for any additional facility granted to the Applicant, if any.

Through Transaction Documents, the Applicant(s) shall expressly confirm, consent and permit SKFL to use the personal information provided by 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 SKFL for processing of personal data in writing or by raising the request on CHATBOT (www.skfin.in) or connecting with SKFL’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. KFS and Sanction Letter shall form a part of this formal agreement and all terms and conditions relating to the Facility stipulated in the KFS and Sanction Letter shall be construed as terms and conditions contained in this agreement. However, in the event of any conflict between the terms of the KFS, Sanction Letter and the Loan Agreement, the opinion of SKFL shall be final and binding. In the event of any disagreement or dispute between SKFL and the Applicant(s) regarding the materiality or reasonableness of any matter, the opinion of SKFL as to the materiality shall be final and binding on the Applicant(s)

(b) Processing fee & such other fees and charges as specified in Transaction Documents in relation to Facility are non-refundable in nature. All such charges shall become payable on/before due date as stipulated in the respective Transaction Document.

(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) Change in interest rate & charges shall become effective prospectively from date of such change, or at a later date as intimated by SKFL.

(e) Applicant(s), on SKFL’s request, 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 Applicant(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), SKFL shall have the right to levy cancellation charges on the Applicant(s) due to the cost incurred by SKFL and SKFL may at its discretion waiver or set-off any processing fees received from the Application(s) against the applicable cancellation charges. SKFL shall be entitled to deduct charges that are paid / to be paid by SKFL on behalf of the Applicant(s), including but not limited to the insurance premium, stamp duty etc. Further, 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 SKFL’s repayment schedule provided in the KFS. SKFL may at its discretion waive or set-off any processing fees received from the Applicant(s) against the applicable cancellation charges.

(g) Vide the Transaction Documents, the Applicant shall consent and authorise SKFL 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. Further, the Applicant(s) shall also agree and consent, 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, SKFL 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 SKFL or RBI in their absolute discretion may think fit. Notwithstanding the above, it is hereby clarified that, as a precondition relating to grant of the Facility to the Applicant(s), SKFL requires the Applicant(s)’s consent for the disclosure by SKFL 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, vide the Transaction Documents, the Applicant(s) shall ensure to confirm, agree and give consent to SKFL:

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; and 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.
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 SKFL/RBI may in their absolute discretion think fit.
SKFL 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.
SKFL 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 SKFL has ended or the account has been closed, whichever is later.

(h) Return/Destruction of SPDCs/PDCs: SKFL shall, at its discretion and convenience, return or 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 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. However, 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, or to intimate the Customers regarding such destruction.

(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 SKFL and provides its consent that SKFL may use the same as security payment cheques, for repayment and/or PEMII (if any), as SKFL deems fit. To this effect, the Applicant(s) shall not make SKFL 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, SKFL 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, Applicant(s) shall not make SKFL liable for such charges levied in this regard.
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, SKFL is fully authorized to levy penal charges for such default by the Applicant(s). SKFL 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, SKFL 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 SKFL. The Parties hereby agree that in case the Applicant(s) fails to submit any documents as informed/mandated by SKFL from time to time, including but not limited to RC, Insurance, Property Documents, NOC/ NDL (in case of BT), Security Documents, then SKFL 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 Applicant. However, no interest shall be levied on the aforesaid portion of the sanctioned amount which is so withheld by SKFL. Additionally, SKFL 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 SKFL. Thereafter, SKFL shall disburse the aforementioned remaining amount within 7 days from the receipt of all such documents by SKFL. SKFL may adjust any charges incurred during the non-submission period on actuals as incurred by SKFL on behalf of the Applicant for obtaining such documents to ensure that the loan granted is secured.
The Applicant expressly recognizes and accepts that on failure to pay any of the outstanding amounts, and/or EMI by Applicant(s) on the Due Date as specified in the Transaction Document and repayment schedule, then in such event SKFL shall be absolutely and unconditionally entitled and have full power and authority to, either by itself or through its officer or agents, visit Applicant(s), collect outstanding amount on behalf of SKFL and to perform/ execute all acts, deeds, matters and things connected therewith or incidental thereto, including sending notices of demand, visiting the residence or office of Applicant or otherwise contacting Applicant, receiving instalments in cash/ draft/cheque from Applicant and generally performing all lawful acts as third parties may consider appropriate for the purpose.
In the event the Applicant makes any payment within the period of five (5) working days prior to the specified Due Date for that EMI cycle, where SKFL may have already initiated the process for NACH presentation for that specific EMI cycle, there shall be no obligation on SKFL to subsequently withdraw/modify such NACH, and it may be continued to be presented and processed, as presentation details may have already initiated with the banks. In the event SKFL receives the Outstanding Amount through any mode other than NACH and the NACH mandate is also successfully debited for the same Outstanding Amount, SKFL shall be entitled to adjust or refund the excess amount so received in accordance with SKFL’s internal policy in this regard. Additionally, SKFL shall be permitted and authorized, vide the Transaction Documents by the Applicant, to present NACH mandate for the purposes of recovery of Outstanding Amounts hereunder, including without limitation scheduled EMIs, overdue instalments, Amounts Due, default period interest, late payment charges, and any other fees, charges, sums payable. It is confirmed and clarified that through the above permission/ authorization, SKFL shall be entitled to present the NACH mandate on one or more occasions, including on dates other than the stipulated Due Date, provided that the Applicant(s) is intimated prior to making such presentation, or reasonable efforts have been made in this regard. The authorization contained herein shall remain effective until final repayment of Facility to SKFL’s satisfaction.

(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 SKFL 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 Applicant(s) for Loan Agreement executed shall also be collateral for any other obligations owing by Applicant(s) to SKFL.

(l) SKFL 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 SKFL and to the satisfaction of SKFL 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, SKFL 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 SKFL 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 SKFL to the Applicant(s) through digital means of communication on the address/ number available with SKFL in its records. The Applicant(s) agrees that SKFL may not dispatch the security (Property) documents at the address prescribed by the Applicant(s) as there are security issues and SKFL 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 SKFL 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 SKFL. The Applicant(s) further understands that SKFL shall not be responsible in any manner whatsoever if the Applicant(s) does not receive the communication due to inaccurate contact details updated in SKFL’s records.

(m) In accordance with applicable law(s) as amended or modified from time to time, where 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. Further, SKFL is also 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) Vide the Transaction Documents, the Applicant(s) shall give 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) In event of any default pursuant to these Terms and/or terms of Loan Agreement (whether demand for repayment is actually made or not), SKFL through its officers, agents or nominees shall have the right (without prejudice to right under Loan Agreement) to take any one or more than one of following actions without specific intervention of a court or any court order:

with a notice period of 15 days/without any notice (specifically on occurrence of events specified in clause (V) hereunder) and assigning any reason and attire risk at expense of Applicant(s) and if necessary as attorney and in the name of Applicant(s) to take charge and/or possession of, seizure, recover, appoint receiver of and remove hypothecated asset, if any. SKFL will be within its rights to use a tow-van to carry away hypothecated asset, and/or;
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,
with prior notice, 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;
proceed to take possession of the collateral security and exercise powers to make auction of the same for realizing the due amount of SKFL;
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):
1. 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.
2. If the hypothecated asset is sold to the third party.
3. If Applicant(s) has expressed his willingness to surrender the possession of the hypothecated asset voluntarily.
4. 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).
5. If the hypothecated asset is used in unlawful activities.
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.
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. In accordance with the KYC requirements applicable on SKFL from RBI, the Applicant(s) shall be required to expressly confirm that (i) 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; and (ii) 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(s) shall provide to SKFL, any additional information required from the Applicant(s) as deemed fit by SKFL which has not been specified in the internal KYC Policy of SKFL, in order to conduct its credit due diligence. The Applicant(s) shall also extend its consent to authorise and enable SKFL to use the Applicant(s)’s CKYC number available in SKFL’s database, and seek/ download the updated KYC records of the Applicant(s) from the Central KYC records registry for KYC compliance and periodic review, updation/ enhanced due diligence during the tenure of loan in accordance with the PML Rules, and shall also allow SKFL to update SKFL’s own KYC records being maintained for the Applicant(s). Any such information downloaded/extracted shall be stored for a period as mentioned under the Applicable Law(s), or till such time it is required to be retained to satisfy the purpose for which it was intended, or the Applicant(s) withdraws the aforesaid consent, whichever is earlier. 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. SKFL 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 SKFL 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 SKFL’s end.

(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 SKFL 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 SKFL 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: Notwithstanding anything to the contrary contained herein, any dispute, controversy and / or claim arising out of and / or relating to the arrangement between the Applicant(s) and SKFL, including its construction, interpretation, meaning, scope, operation, effect and / or validity thereof out of, in connection with or in relation to the terms and conditions as contained under the Transaction Documents, or its existence or validity, whether during its subsistence or thereafter, between the Parties (including their successors, heirs or assigns) shall be resolved by sole arbitrator in accordance with the provision of the Arbitration and Conciliation Act, 1996 (“Act”) or any statutory amendment thereof. The sole arbitrator nominated by the Arbitral Institution (defined below) shall be considered as a nomination by mutual consent of the Parties from Alternate Dispute Resolution and Welfare Society, Jaipur (hereinafter referred to as “Arbitral Institution”). The arbitration shall be administered by the above Arbitral Institution in accordance with rules of the Arbitral Institution as prevailing and as amended from time to time (“Rules”). The Parties hereby consent to agree to carry out the arbitration proceedings through hybrid / online dispute resolution mechanism from the above-mentioned Arbitral Institution and, for such purpose, the email addresses and / or mobile numbers available, provided or otherwise referenced in the Transaction Documents, including the ancillary documents, shall be considered. Each party shall be responsible for intimating such Arbitral Institution in the event of any change in its email address and / or mobile number throughout the arbitration proceedings. In the event the arbitration proceedings cannot be administered virtually in the opinion of the arbitrator, the proceedings shall be conducted physically, and the venue of the proceedings shall be as determined by the arbitrator having regard to the circumstances of the case, including the convenience of the Parties, whose decision shall be final and binding on the Parties. The seat of arbitration shall be Jaipur, Rajasthan. The language of arbitration shall be English and/or Hindi. The law governing the arbitration proceedings shall be Indian law. The decision of the arbitrator shall be final and binding on the Parties. The competent courts at the seat mentioned hereinabove, shall have exclusive jurisdiction. The award of the arbitrator shall be final and binding on all parties. The cost of arbitration shall be borne by the Applicant(s). 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:

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.
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.
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 Transaction Documents, or (ii) the interests of SKFL.
Execution, filing, registration and delivery, by the Applicant(s), of all Transaction Documents in the form, manner and substance acceptable to SKFL.
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.
To avail the Facility from SKFL, the Applicant(s) shall assure to comply with all the provisions of the act applicable on the Applicant(s) and shall further confirm 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.
The Applicant(s) shall notify SKFL of any change, including and not limited to following, occurred between date of loan application and date of disbursement of Facility, and even otherwise, within 15 (fifteen) days of such change:
1. 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);
2. Make any change in the constitution, management or existing ownership, shareholding pattern or control or share capital of the Applicant(s).

(v) 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 SKFL. 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 Applicant(s) (including the Guarantor) are not and, to the best of their knowledge:

on the Export Credit Guarantee Corporation’s (ECGC’s) specified approval list; or
convicted under provisions of Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974; or
on RBI’s wilful defaulters/ caution list; or
on SKFL’s defaulter list; or
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.

(w) 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 SKFL. “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.

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

(y) It shall be the responsibility of 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 SKFL.

(z) In 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 its website the regulatory requirements, example along with terms, for the customers, process of categorization of loan account as NPA i.e., Non-Performing Asset and SMA i.e., Special Mention Account.

(aa) In the event of any suspicion and/or indication of commission of any wrongdoing and/or fraudulent activity(ies), SKFL 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 Applicant(s) shall extend prompt and full cooperation in relation to such audit as and when required by SKFL. Further, in the event that pursuant to such audit, audit report received by SKFL is inconclusive, and/or is delayed as a consequence of non-cooperation by the Applicant(s), SKFL 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 SKFL and SKFL’s own internal investigation and assessment in such regard.

(ab) As per the provisions of the Income Tax Act, 1961, 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 SKFL with the necessary TDS certificates in the prescribed form within the stipulated time frame. The Applicant(s) shall be responsible agrees to comply with the Goods and Services Tax (GST) laws as applicable. 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.

(ac) 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.

(ad) SKFL shall provide 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, cooling-off period etc.

(ae) SKFL shall provide a copy of the executed loan agreement within 45 (forty-five) days from the date thereof via WhatsApp, email, SMS, or through physical mode. In case the Applicant does not receive the same within the stipulated period, they may contact with SKFL through its customer care number (1800 1039 039) or raise a request at the nearest branch.

(af) 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 SKFL’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 be deemed to have agreed to the updated Terms. In the event specific schedule of charges for any loan product has not been separately provided on SKFL’s website, the Applicant(s) is advised to refer to the loan agreement therefor available under the disclosure tab for complete details on applicable charges.

(ag) For quick perusal and reference, the loan agreements and these Terms are uploaded on the website of SKFL 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.

(ah) Additional Terms for Digital Lending: Applicant(s) availing loans through digital lending mode from SKFL 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 SKFL 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 SKFL 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 SKFL 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.

(ai) 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. SKFL 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 SKFL. The Applicant(s) may refer to the updated most important terms & conditions applicable to the Applicant(s) displayed herein on an ongoing basis.

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