The Unsecured Loan Note is a fundamental financial instrument used in the Indian market when extending credit without requiring collateral or security. It's particularly useful for businesses with strong credit profiles, established companies seeking working capital, or situations where traditional secured lending is impractical. The document complies with Indian contract law and financial regulations, incorporating essential provisions for loan amount, interest calculation, repayment terms, and default scenarios. It's commonly used in both institutional and private lending, providing a legally robust framework while maintaining operational flexibility. The note's unsecured nature makes it especially important to include comprehensive representations, warranties, and enforcement mechanisms to protect the lender's interests.

1. Parties: Identification of the lender and borrower with complete details including name, address, and registration information if applicable

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

3. Definitions: Key terms used in the document including 'Business Day', 'Default Interest', 'Interest Rate', 'Loan Amount', 'Maturity Date'

4. Loan and Purpose: Details of the loan amount, purpose, and disbursement terms

5. Interest: Interest rate, calculation method, payment frequency, and default interest provisions

6. Repayment: Repayment schedule, method of payment, and prepayment terms

7. Representations and Warranties: Standard declarations by the borrower about their legal capacity and financial condition

8. Events of Default: Circumstances constituting default and consequences thereof

9. Remedies: Lender's rights and remedies upon occurrence of an event of default

10. Notices: Communication methods and contact details for formal notices

11. Governing Law and Jurisdiction: Specification of Indian law as governing law and jurisdiction for disputes