A Finance Contract is a fundamental document used in Indian financial transactions to formalize lending arrangements between financial institutions and borrowers. This document is essential when establishing credit facilities, term loans, working capital arrangements, or other financing structures in India. The contract must comply with Indian banking regulations, Reserve Bank of India guidelines, and relevant financial sector laws. It typically includes detailed provisions on facility terms, security arrangements, covenants, and enforcement mechanisms. The document is crucial for protecting the interests of both lenders and borrowers while ensuring the transaction meets regulatory requirements and is enforceable under Indian law. It serves as the primary reference point for the parties' rights and obligations throughout the duration of the financial arrangement.

1. Parties: Identifies and provides full details of all parties to the agreement including their legal status, registration details, and authorized representatives

2. Background: Sets out the context and purpose of the financial arrangement

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

4. Facility Details: Specifies the type, amount, and purpose of the financial facility being provided

5. Interest and Fees: Details the interest rate(s), calculation method, payment frequency, and all applicable fees

6. Drawdown and Disbursement: Specifies the conditions and process for accessing the funds

7. Repayment Terms: Sets out the repayment schedule, methods, and prepayment provisions

8. Security: Details the security arrangements, including types of security, creation, and perfection requirements

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

10. Covenants: Specifies positive and negative obligations of the borrower during the term of the facility

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

12. Remedies: Outlines the lender's rights and remedies upon default

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

14. Notices: Sets out how formal communications between parties should be made

15. Miscellaneous: Contains standard boilerplate provisions including amendments, assignments, and severability