The Unsecured Directors Loan Agreement is a critical document used when a company in India extends a loan to one of its directors without requiring specific security or collateral. It must comply with Section 185 of the Companies Act 2013, which places strict conditions on loans to directors, including requirements for board approval and, in many cases, a special resolution by shareholders. The agreement details the loan amount, purpose, interest rate, repayment schedule, and default provisions while ensuring transparency and corporate governance. This document is particularly relevant in situations where directors require funding for personal or business purposes, and the company has sufficient liquidity to extend such credit. It's essential to note that such agreements must be carefully structured to avoid any conflicts of interest and maintain compliance with regulatory requirements, including tax implications under the Income Tax Act.
Your data doesn't train Genie's AI
You keep IP ownership of your information
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
OR
Let Genie AI's market-leading legal AI identify missing terms, unusual language, compliance issues and more - in just seconds.
Upload your Doc
1. Parties: Identification of the Company and the Director receiving the loan, including their registered addresses and company registration details
2. Background: Context of the loan, reference to board resolutions and shareholder approvals (if required under Section 185 of Companies Act)
3. Definitions: Definitions of key terms used throughout the agreement, including 'Business Day', 'Default Interest', 'Loan Amount', etc.
4. Loan Amount and Purpose: Specification of the loan amount, purpose of the loan, and confirmation of its unsecured nature
5. Interest Rate: Details of applicable interest rate, calculation method, and payment frequency
6. Drawdown: Conditions and process for disbursement of the loan amount
7. Repayment Terms: Repayment schedule, payment methods, and account details
8. Representations and Warranties: Standard representations by the Director regarding capacity, solvency, and no conflicts
9. Default Events: Circumstances constituting default and consequences thereof
10. Covenants: Director's ongoing obligations during the loan term
11. Notices: Process and addresses for serving notices under the agreement
12. Governing Law and Jurisdiction: Specification of Indian law as governing law and jurisdiction for disputes
1. Early Repayment: Terms for voluntary early repayment of the loan, including any prepayment penalties
2. Personal Guarantee: Include when additional security through personal guarantee is required
3. Insurance: Requirements for life or term insurance policies as additional protection
4. Change in Employment: Provisions dealing with director's resignation or termination during loan term
5. Tax Provisions: Detailed tax implications and responsibilities, particularly relevant if loan amount is significant
6. Assignment: Rights and restrictions regarding assignment of the agreement
7. Force Majeure: Provisions for unforeseen circumstances affecting loan repayment
1. Schedule 1 - Loan Details: Detailed breakdown of loan amount, interest calculations, and repayment schedule
2. Schedule 2 - Drawdown Notice: Format of drawdown notice to be used for requesting loan disbursement
3. Schedule 3 - Board Resolution: Copy of board resolution approving the loan
4. Schedule 4 - Shareholders' Resolution: Copy of special resolution if required under Section 185 of Companies Act
5. Schedule 5 - Compliance Certificate: Format for periodic compliance certification by Director
6. Appendix A - Payment Instructions: Bank account details and payment processing instructions
Relevant legal definitions
Agreement
Applicable Law
Board
Board Resolution
Business Day
Companies Act
Company
Default
Default Interest
Default Interest Rate
Director
Drawdown
Drawdown Date
Drawdown Notice
Due Date
Early Repayment
Effective Date
Event of Default
Financial Year
Governing Law
Interest
Interest Payment Date
Interest Period
Interest Rate
Loan
Loan Amount
Material Adverse Effect
Maturity Date
Outstanding Amount
Parties
Payment Date
Prepayment
Purpose
Regulatory Authority
Repayment Date
Repayment Schedule
RBI
SEBI
Shareholders Resolution
Tax
Term
Working Day
Applicable Law
Board
Board Resolution
Business Day
Companies Act
Company
Default
Default Interest
Default Interest Rate
Director
Drawdown
Drawdown Date
Drawdown Notice
Due Date
Early Repayment
Effective Date
Event of Default
Financial Year
Governing Law
Interest
Interest Payment Date
Interest Period
Interest Rate
Loan
Loan Amount
Material Adverse Effect
Maturity Date
Outstanding Amount
Parties
Payment Date
Prepayment
Purpose
Regulatory Authority
Repayment Date
Repayment Schedule
RBI
SEBI
Shareholders Resolution
Tax
Term
Working Day
Clauses
Interpretation
Loan Terms
Interest
Drawdown
Repayment
Security
Representations and Warranties
Covenants
Conditions Precedent
Default
Early Termination
Assignment
Notices
Confidentiality
Force Majeure
Indemnification
Dispute Resolution
Governing Law
Severability
Amendment
Entire Agreement
Counterparts
Waiver
Compliance
Tax
Costs and Expenses
Further Assurance
Authority
Loan Terms
Interest
Drawdown
Repayment
Security
Representations and Warranties
Covenants
Conditions Precedent
Default
Early Termination
Assignment
Notices
Confidentiality
Force Majeure
Indemnification
Dispute Resolution
Governing Law
Severability
Amendment
Entire Agreement
Counterparts
Waiver
Compliance
Tax
Costs and Expenses
Further Assurance
Authority
Relevant Industries
Banking & Financial Services
Professional Services
Technology
Manufacturing
Real Estate
Retail
Healthcare
Education
Infrastructure
Energy
Telecommunications
Media & Entertainment
Hospitality
Relevant Teams
Legal
Finance
Corporate Secretarial
Compliance
Risk Management
Corporate Governance
Board Secretariat
Treasury
Internal Audit
Relevant Roles
Director
Company Secretary
Chief Financial Officer
Legal Counsel
Compliance Officer
Corporate Governance Head
Board Member
Financial Controller
Managing Director
CEO
Risk Manager
Corporate Lawyer
Finance Manager
Company Director
Board Secretary
Find the exact document you need
Pre Contract Agreement Car (Finance)
An Indian law-governed preliminary agreement setting out the framework and conditions for a potential car financing arrangement between a lender and prospective borrower.
find out more
Mortgage Servicing Agreement
An agreement governing mortgage servicing operations in India, establishing the relationship between lenders and servicers under Indian banking laws.
find out more
Letter For Lending Money To Someone
An Indian law-compliant letter document that formalizes a money lending arrangement between parties, detailing loan terms and conditions.
find out more
Lending Money Letter
A formal Indian law-compliant document establishing loan terms between parties, including amount, interest, and repayment conditions.
find out more
Lending Form
An Indian law-compliant lending form that documents loan agreements between lenders and borrowers, incorporating key regulatory requirements and transaction terms.
find out more
Hardware Loan Agreement
An Indian law-governed agreement establishing terms for temporary hardware loans between parties, including usage conditions, maintenance requirements, and return specifications.
find out more
Borrow Agreement Form
An Indian law-governed agreement establishing terms and conditions for borrowing arrangements, including loan amount, interest rates, and repayment terms.
find out more
Business Loan Broker Agreement
An Indian law-governed agreement establishing terms for loan broking services between a financial intermediary and a business client, including service scope and regulatory compliance requirements.
find out more
Borrowing Money Letter
A formal letter document governed by Indian law that establishes loan terms between borrower and lender, serving as a legally binding record of the borrowing arrangement.
find out more
Unsecured Personal Loan Agreement
An Indian law-governed agreement for unsecured personal loans, establishing loan terms and parties' obligations without requiring collateral.
find out more
Two Wheeler Loan Agreement
An Indian law-governed agreement establishing terms and conditions for two-wheeler vehicle financing, including loan details, security arrangements, and party obligations.
find out more
Term Loan Facility Agreement
An Indian law-governed agreement setting out terms and conditions for a term loan facility, including loan amount, interest, repayment, and security arrangements.
find out more
Syndicated Facility Agreement
An Indian law-governed agreement establishing terms for a loan provided by multiple lenders (syndicate) to a borrower, detailing facility terms and regulatory compliance requirements.
find out more
Simple Mortgage Deed Draft
An Indian legal document creating a charge on immovable property as security for a loan, governed by the Transfer of Property Act, 1882.
find out more
Simple Mortgage Agreement
An Indian legal document creating a security interest in real property as loan collateral, governed by the Transfer of Property Act, 1882.
find out more
Simple Loan Agreement Form
An Indian law-governed agreement establishing terms and conditions between lender and borrower for a basic loan transaction.
find out more
Self Help Group Loan Agreement Form
An Indian jurisdiction agreement establishing loan terms between a financial institution and a Self Help Group, incorporating group liability and microfinance regulations.
find out more
Private Loan Agreement For (Real Estate)
An Indian law-governed agreement establishing terms and conditions for private lending secured against real estate property, including loan terms, security arrangements, and enforcement mechanisms.
find out more
Peer To Peer Lending Agreement
An RBI-compliant agreement governing peer-to-peer lending transactions in India, establishing terms between lender and borrower through a regulated P2P platform.
find out more
Personal Loan Letter
An Indian-law governed letter documenting personal loan terms between parties, including loan amount, interest, repayment schedule, and obligations.
find out more
Personal Loan Contract Form
An Indian law-governed contract template establishing terms and conditions for personal loans between financial institutions and individual borrowers.
find out more
Personal Loan Agreement Document
An Indian law-governed agreement documenting terms and conditions of a personal loan between lender and borrower, including loan amount, interest, repayment terms, and legal obligations.
find out more
Personal Loan Agreement Contract
An Indian law-governed agreement establishing terms and conditions for a personal loan between a lender and borrower, including loan amount, interest, and repayment terms.
find out more
Personal Line Of Credit Agreement
An Indian law-governed agreement establishing a personal line of credit facility between a financial institution and an individual borrower, setting out terms for revolving credit access.
find out more
Small Loan Contract
An Indian law-governed agreement establishing terms and conditions for a small-scale loan between lender and borrower, including loan amount, interest rates, and repayment terms.
find out more
Small Loan Agreement
An Indian law-compliant agreement for documenting small-scale lending arrangements, specifying loan terms, repayment conditions, and security provisions.
find out more
Pro Forma Loan Agreement
A standard-form loan agreement template compliant with Indian law and banking regulations, establishing terms for lending transactions.
find out more
Loan Car Form
An Indian-compliant legal document establishing terms and conditions for temporary vehicle loans between parties, adhering to Indian motor vehicle and contract laws.
find out more
Mortgage Subordination Agreement
An Indian law-governed agreement that establishes priority between multiple mortgages on a property, where one mortgage holder agrees to subordinate their security interest to another.
find out more
Family Member Promissory Note
An Indian-law governed promissory note formalizing loan agreements between family members, establishing legally binding terms while preserving familial relationships.
find out more
Vendor Finance Loan Agreement
An Indian law-governed agreement establishing terms for vendor financing, including loan details, security arrangements, and party obligations.
find out more
Employee Computer Loan Agreement
An Indian law-governed agreement establishing terms for employer-provided computer equipment loans to employees, including repayment and usage conditions.
find out more
Acknowledgement Of Debt Agreement
An Indian law-governed agreement formally recognizing a debt obligation between parties, including repayment terms and interest calculations.
find out more
Balloon Loan Agreement
An Indian law-governed loan agreement featuring smaller periodic payments with a large final balloon payment, structured under Indian banking and contract laws.
find out more
Loan Agreement Between Companies
An Indian law-governed agreement establishing terms and conditions for an inter-company loan, including loan amount, interest, repayment terms, and parties' obligations.
find out more
Inter Lender Agreement
An Indian law-governed agreement establishing rights and relationships between multiple lenders in a financing arrangement, compliant with Indian banking regulations.
find out more
Overagreement
An Indian law-governed master agreement establishing framework terms for ongoing business relationships and future specific transactions.
find out more
Litigation Financing Agreement
An Indian law-governed agreement establishing terms for third-party funding of legal proceedings, including funding commitments, returns, and control mechanisms.
find out more
Credit Terms Agreement
An India-governed agreement establishing credit facility terms between lender and borrower, compliant with Indian banking regulations and enforcement mechanisms.
find out more
Subordinated Loan Agreement
An Indian law-governed agreement establishing a subordinated loan facility where the lender's claims are contractually subordinate to senior debt obligations.
find out more
Genie’s Security Promise
Genie is the safest place to draft. Here’s how we prioritise your privacy and security.
Your documents are private:
We do not train on your data; Genie’s AI improves independently
All data stored on Genie is private to your organisation
Your documents are protected:
Your documents are protected by ultra-secure 256-bit encryption
We are ISO27001 certified, so your data is secure
Organizational security:
You retain IP ownership of your documents and their information
You have full control over your data and who gets to see it
.png)
.png)