The Simple Loan Note Agreement is a fundamental financing document used in India when one party (the lender) agrees to provide a loan to another party (the borrower). This document is particularly useful for straightforward lending arrangements where clear documentation of the loan terms, repayment obligations, and security (if any) is required. The agreement complies with Indian contract law and banking regulations, making it suitable for both institutional and private lending scenarios. It includes essential provisions such as loan amount, interest calculations, repayment schedule, events of default, and enforcement mechanisms. This type of agreement is commonly used for business loans, working capital financing, or personal lending arrangements where formal documentation is needed but the complexity of a full facility agreement is not required.

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

2. Background: Brief context of the loan arrangement and purpose

3. Definitions: Defines key terms used throughout the agreement

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

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

6. Repayment Terms: Schedule of repayments, payment methods, and prepayment provisions

7. Conditions Precedent: Conditions that must be satisfied before the loan is disbursed

8. Representations and Warranties: Standard declarations by the borrower about their legal status and capacity

9. Covenants: Ongoing obligations of the borrower during the loan term

10. Events of Default: Circumstances that constitute default and consequences thereof

11. Notices: Communication procedures between parties

12. Governing Law and Jurisdiction: Specifies Indian law as governing law and relevant jurisdiction

13. Counterparts: Provisions for execution in multiple counterparts