The Peer To Peer Loan Agreement is essential for documenting private lending arrangements in India, providing a legally binding framework that protects both lender and borrower interests. This document is particularly relevant in the growing alternative finance sector, where individuals seek to lend or borrow money directly from each other, either independently or through P2P lending platforms. The agreement must comply with the Reserve Bank of India's Master Directions on P2P Lending Platforms (2017) and other relevant Indian financial regulations. It typically includes detailed terms about loan amount, interest calculations, repayment schedules, default provisions, and remedies, while ensuring adherence to Indian usury laws and documentation requirements. The agreement becomes particularly important for maintaining clear records for tax purposes and potential dispute resolution.

1. Parties: Identifies and provides full details of the Lender and Borrower, including names, addresses, and contact information

2. Background: Outlines the context of the loan agreement and the parties' intention to enter into a lending arrangement

3. Definitions: Defines key terms used throughout the agreement for clarity and consistency

4. Loan Amount and Purpose: Specifies the principal amount being lent and the stated purpose of the loan

5. Interest Rate and Calculations: Details the applicable interest rate, calculation method, and frequency of interest computation

6. Repayment Terms: Specifies the repayment schedule, installment amounts, and payment methods

7. Representations and Warranties: Statements of fact and assurances made by both parties regarding their capacity and authority to enter into the agreement

8. Borrower's Covenants: Ongoing obligations and commitments of the borrower during the loan term

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

10. Remedies: Outlines the lender's rights and remedies in case of default

11. Notices: Specifies how formal communications between parties should be made and delivered

12. Governing Law and Jurisdiction: Establishes Indian law as governing law and specifies jurisdiction for dispute resolution

13. Miscellaneous: Contains standard boilerplate provisions including severability, entire agreement, and amendments