Guidelines For Loan Documentation - Unlocked

DOCUMENTATION
Documentation is an integral part of lending by Banks. Documents establish a formal legal relationship
between the lenders and borrower & other parties and provides for various rights and obligations in relation
to the financial assistances provided / agreed to be provided by the lenders as also for creation of charge/
security, on the properties.
Realisation of the Bank dues depends to a large extent upon the precision and completeness of the
documents obtained from the Borrower. It is precisely because of this reason that the Banks have adopted
Standard Forms for security documents, which are prepared by their legal departments with due care to
ensure that there is no possibility of any important legal provision being overlooked at the time of loan
sanction.
DOCUMENTS
As per the definition under Section 3(18) of the General Clauses Act, 1987, a document shall include any
matter written, expressed or described upon any substance by means of letters, figures or marks or by
more than one of those means which is intended to be used or which may be used for the purpose of
recording that matter. In other words embodiment of the contract between the Lender and the borrower &
others in writing can be termed as Loan/security document.
DOCUMENTATION
The process of obtaining proper documents and completion of the necessary formalities
Connected therewith is called, Documentation.
For The following reasons documents are necessary to be procured:
i. to have a written evidence of the transactions of lending or security creation made by the bank;
ii. to identify the borrower;
iii. to identify the security;
iv. to ensure due repayment of the loan by the borrower/ guarantor/mortgagor
v. to create a valid and effective security in favour of the Bank and to create charge on security;
vi. to entitle the Bank to take legal steps for recovery of the loan, in the event of non-payment by the
borrower/or guarantor;
vii. to prove and establish before a Court of Law that the Amount was lent and the same has not been
repaid;
Section 10 of the Indian Contract Act defines the essential elements of a valid contract, All agreements are
contracts if they are made with the free consent of parties competent to contract, for a lawful consideration
with a lawful object, and are not expressly declared void under any law.
For a legally valid and enforceable contract or document, the following necessary elements of a valid
contract as defined u/s10 of the Contract Act have to be fulfilled, viz;
1. The parties should be competent to contract.
2. The parties should have entered into the contract with their own free will/consent.
3. The contract should be for a lawful consideration with lawful object
4. The contract should not have been declared void or opposed to public policy.
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EXECUTION OF DOCUMENTS:
Essential for valid documentation:-
i. The document should be properly DRAWN. Details of the transaction/facility sanctions, important
conditions like, terms of repayment, interest charged/ to be paid and Security/Collateral Security etc.,
must be stated in the document. For covering the various types of loans and advances, we have
drawn various standard forms. For such documentation the Branch Manager or the Officer concerned
is required to select the appropriate prescribed document as per the prescribed list of documents to
be obtained depending upon the type of transaction.
ii. The document should be properly FILLED. The document is required to be completely filled
giving the required information in the document/blanks. Law does not permit filling or interpolation of
the contents after the execution of the document more so, in material particulars. All the major writings/
blanks filled should be authenticated by the executor by subscribing his signature.
iii. The document should be properly STAMPED in accordance with the local Stamp Act of the State
where the documents are executed. The documents are required to be properly stamped before or at
the time of execution. In case the document is not properly stamped, the same cannot be read in
evidence and the very purpose of obtaining the document is frustrated.
iv. The document should be properly EXECUTED. The identity and address of the executor should
be thoroughly checked by fulfilling the KYC norms. In case of third party securities extra care should
be taken to check the KYC norms. The document should mention the date, month and year of execution
for determining the period of limitation. Document must mention the place of execution. This is for
determining the jurisdiction of courts in case of disputes and for purposes of payment of proper
stamp duty, according to the law applicable to the particular place. It is also necessary that the name
and particulars of the executors are mentioned under their signatures.
Any person executing the documents should be competent to enter into contract and should not be a
minor, lunatic and un-discharged insolvent, as they are not competent to enter into a valid contract under
the Indian Contract Act. The validity of a document would also depend on the mode of execution and the
manner of execution of a document and would depend on type of borrower. To avoid any cause for effecting
the validity of a document, the Branch Manager/or the other Officer of a Bank should take into consideration
the following aspects in so far as it relates to the different types of borrowers/their competence and mode
of execution to be adopted in their case.
Borrower/or Guarantor
1. Minor: A minor under the Indian Law is a person who has not completed 18 years of age. In case a
guardian of his person or property is appointed by Court of Law before he completes his 18 years,
the period of minority is 21 years (as per Section 3 of the Indian Majority Act, 1875). A contract by a
minor is void ab inito and not merely voidable, and hence a minor cannot be sued. An advance to a
minor even if it is supported by the guarantee of a third party cannot be recovered from the guarantor.
The minor being not liable as a principal debtor, the original agreement will be void, and the ancillary
agreement of guarantee will therefore also be invalid.
Minor cannot be compelled to pay the money borrowed by him except under the circumstances
mentioned in Section 65 of the Indian Contract Act, 1872, viz. for necessaries suited to his condition and
supplied to him. But such position is the only exception applicable to the general capacity of a minors
estate.
The minor cannot act for himself and he/or she, has to act through his/her guardian. For purposes of
obtaining immovable property belonging to a minor, as security by way of charging such properties, a
banker has to ensure that a guardian, natural guardian/or the guardian appointed by the competent court,
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is there to act on behalf of the minor. As stated above, the guardian of a minor is legally competent to create
charge on the property belonging to a minor, in the event of borrowing for the necessaries of a minor.
Under the provisions of Hindu Minority and Guardianship Act, 1956 it is necessary for the Guardian of
a Minor to obtain permission from a Competent Court for the purpose of creating mortgage, or charge, or
sale, or gift, or exchange of immovable property of a minor or for leasing for a term exceeding 5 years or for
a term extending more than 1 year beyond attaining majority, for obtaining loan for the benefit of a Minor.
Now in some States, which have adopted the recommendation of Talwar Committee and framed their
State Legislation laying down the requisite provision in respect of creation of charge in favour of a Bank/
recovery of loan as arrears of land revenue by the competent authorities as prescribed by the State
Government and provisions for making Distraint and Sale of the hypothecated property etc., has also laid
down the specific provision there under in respect of giving permission to the guardian of a minor for
creating a charge over the property belonging to a minor, for borrowing loan for the benefit of a minor and
offering property as security by way of creation of charge over the same. For example, in the State of U.P
such Act is named as U.P. Agricultural Credit Act 1975.The prescribed authority under the aforesaid Act,
can exercise the powers to grant requisite permission to a guardian of a minor.
In case of agricultural land belonging to a minor, or even non-agricultural land, normally in accordance
with the provisions of Land Records Manual, Land Revenue Act/or any other similar enactments in terms of
which the land records are maintained by the revenue department of the State, Record of Right and
Record of Possession are maintained in relation to the landed property, and the name of natural guardian
or the guardian appointed by the court is mentioned in such record along with the age of the minor, owner of
the land. A Banker is expected to take note of such record though the same is required to be duly
examined by the Advocate/or Solicitor of the banker, while doing the investigation of title and submitting title
report.
Permission of the competent court (if any) as per the above should be obtained in the event of
accepting minors property as security by way of creating charge over the same by the guardian of the
minor, and the certified copy of the Courts permission should also be placed on the banks record.
For the reason discussed above, a minor cannot be a guarantor for anybody.
2. Lunatics: A person of unsound mind can avoid a debt liability if he or his legal representatives can
prove that he was of unsound mind at the time of borrowing. Normally a banker avoids to deal with a
lunatic borrower/or customer. However, he may be a person who is not a permanent lunatic and
suffers from temporary mental disorder. In such cases if a banker has agreed to advance money to
him or accept his guarantee, to avoid the aforesaid chance of disowning of his liability with the plea of
his unsound mind at the time of execution of document, a banker should obtain a certificate from two
reliable medical officers, or preferably from the Chief Medical Officer of a Government hospital regarding
his mental soundness at the time of execution of documents/making advance.
3. Drunken Persons: One of the conditions of a valid contract is that it must be entered into between
persons who are of sound mind. A person is said to be of sound mind for the purpose of making a
contract, if at the time he makes it, he is capable of understanding it and of forming a rational
judgement as to its effect upon his interests. Though in the event of taking such plea of being under
state of intoxication by an executant of a document, to disown his liability arising out of extended
document the burden of proof would be on the person taking such plea, a banker should take due
care to avoid such situation and ensure that the executant is not in a state of intoxication at the time
of execution of document.
4. Insolvents: A Banker should not lend with or without security to an un-discharged insolvent or a
person against whom insolvency proceedings are pending.
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5. Married Women: A married woman can be made liable only to the extent of her separate estate. In
any case her husband would not be liable for the debts incurred by her as a borrower/or pecuniary
liability undertaken by her as a guarantor, unless her husband has specifically undertaken such
liability. Therefore, a banker should ensure before accepting the document executed by a married
woman as a security, that she owns an independent estate.
6. Local Authorities & Government Department : A banker before making advance to a local Authority
and accepting the document executed on behalf of the local authority should ensure that such authority
has power to enter the contract and person executing the document has requisite power either by
way of resolution/or under a power of attorney. Normally such powers should be got examined by the
legal department/or the solicitor/or the advocate of the Bank.
7. Partnership Firm : Partnership is the relation between persons who have agreed to share the
profits of a business, carried on by all or any one acting for all. Partners collectively are called a firm.
A partner is the agent of the firm for the purpose of the business of the firm and can bind the firm,
which authority is called implied authority. Every partner is liable, jointly with all the other partners and
also severally, for all acts of the firm done or instruments executed while he is a partner, provided the
act is done or the instrument is executed in the firms name and relates to the kind of business carried
on by the firm. All documents of security/loan, in case of partnership firm must be signed by all the
partners as a partner of the firm and also in their individual capacity. By obtaining the signature in
both the capacities as indicated above, the banker will have a right of set off, on any private account
/ property of the partner in respect of the firms debt. Additionally the bank will have a right to prove
concurrently against the firms assets as well as the property of each partner in the event of insolvency.
A banker should also insist for furnishing a declaration (Partnership letter) signed by all the partners
accepting joint and several liability for the firms borrowings. Such declaration should also contain the
statement and assertion of the partners of the firm that unless a change in the constitution of the firm
has been communicated to the bank in writing and acknowledged by the bank, the joint and several
liabilities of the partners will continue. While dealing with partnership firm, the partnership agreement
should be scrupulously examined to check the rights and powers of the partners, objects and tenure
of the firm. In creation of mortgage, all partners of the firm should join without exception.
8. Pardanasheen lady : There is no restriction imposed by the law in relation to the competence of
pardanasheen ladies or about the mode of execution of documents by them. However, having regard
to the current judicial authorities, which have examined the issues disputing the execution of documents
by pardanasheen ladies; it is always advisable for Solicitor/pleader/or notary to preferably obtain a
certificate from such person regarding the execution of particular document by such ladies in their
presence. This helps in proving the execution.
9. Literates/Illiterate Persons: There is no distinction under law, as far as the execution of documents
is concerned, between a literate and illiterate person, and the requirements of a proper and valid
execution of a document are same for both of them. While in case of a literate person his consent to
the contents of document and execution thereof is indicated and proved in case of dispute with
reference to his signature on such document, in case of an illiterate the said object is achieved with
reference to his thumb impression. Though there is no specific rule for taking L.T.I/or R.T.I but normally
as per practice Left thumb impression is taken in case of ladies. The law does not prohibit to take
thumb impression in case of literate persons, but having regard to the fact and modes of proof for
proving execution of a document the signature could be proved easily in case of literate persons and
perhaps it may be difficult to prove as to what could be a reason for a literate person to put thumb
impression if signature has not been obtained. It is also advisable to get the thumb impression attested
by some person preferably an advocate or notary, only wherever the documents permits to do so.
Below thumb impression it should be mentioned L.T.I or R.T.I as the case may be. Further in order to
avoid any dispute to the awareness of the contents of the documents, even though execution is
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proved, it is also advisable to obtain a certificate with the person witnessing such execution, that the
contents of documents, were fully read over and explained to the executants.
10. Hindu Undivided Family (HUF) : - HUF is a joint family consisting of all lineally descended (both
male as well as female) members from a common ancestor. HUF is a group of members of the same
family. HUF cannot be termed as a person. The father or the senior member of the family called the
Karta manages the property of the HUF. Every member of a Hindu Family becomes a coparcener in
the Joint Hindu Family by birth and acquires a right in the Joint Hindu Family property. The number of
members of a HUF varies from time to time as the same depends on the birth and death of the
members of the HUF.
As HUF cannot be termed as a legal persona and as it has no separate existence from its members,
HUF cannot become a partner in a Partnership Firm.
Karta has the power to borrow, alienate the Joint Hindu Family property or even incur any obligation
so as to bind the interest of both adult and minor coparceners in the property, only if such alienation is
made for legal necessity, or for the benefit of the estate, or for indispensable duties which are religious,
pious or charitable acts, payment of any debts incurred for family business or other necessities.
Normally Karta can execute the documents on behalf of the HUF as he can enter into a contract and
bind all the members of the HUF to the extent of their share. But as a matter of abundant caution it is
advisable that the loan documents are got executed by all the major members of the HUF.
11. Clubs and Associations: - Advances to Clubs, Associations etc should be secured by the personal
guarantee of all the Committee members existing and future till the advances are liquidated. A resolution
passed by the members of the Club, Association as per applicable byelaws containing an authorization
to borrow and the powers of the Committee to create charge on the assets of the club, association
should be obtained at the time of advancing loan.
12. Company: A Company is a body corporate incorporated either under the Companies Act 1956 or
The Companies Act 2013 for the purpose of carrying on some enterprise. The Companies Act 2013
prescribes for incorporation of a one person Company also. Company is an artificial person having
distinct identity and is different from its share holders. Company being a distinct legal entity can sue
and be sued in Companys name. Companies are classified as
(a) Companies Limited by Shares:- Liability of the share holder is limited to the amount of share
capital if any remaining unpaid on the shares held by him.
(b) Companies Limited by Guarantee:- Liability of its members is limited by the memorandum to
such amount as the members may respectively undertake to contribute to the assets of the
Company in the event of its being wound up.
(c) Private Company: A Company having minimum paid up share capital as may be prescribed and
which by its Articles restrict the right to transfer its shares; and except in case of one person
company, two or more persons can form a company but limits the number of its members to
two hundred.
(d) Public Company:- A Company which is not a private company, having such paid up capital as
prescribed. A public company should have a minimum of seven or more members to register as
a company.
All notices and documents must be served on the registered office of a Company. While entertaining
the loan application the Memorandum and Articles of Association, Certificate of Incorporation, Certificate of
Commencement of business(in respect of Public Companies), Board Resolution authorizing the authorized
signatories to open account / borrow funds with a bank, sign and execute the documents and affixation of
the common seal of the Company etc have to be obtained.
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13. Limited Liability Partnership (LLP):- Limited Liability Partnership is governed by the Limited Liability
Partnership Act 2008. There is no restriction on the maximum number of members of an LLP. LLP is
a body corporate having a distinct legal entity from its Partners. In an LLP the liability of individual
partners is limited and the Partners are not liable for other partners misconduct. An LLP and its
Partners are distinct from each other and the LLP is responsible for its debts, but not the individual
Partners. An LLP has perpetual succession and any change in the constitution/partners of an LLP
will not affect the existence, rights or liabilities of the LLP. The mutual rights and duties of Partners of
an LLP interse and those of the LLP and its Partners shall be governed by an agreement between
partners or between the LLP and the partners subject to the provisions of the LLP. A statement of
accounts and solvency shall be filed by every LLP with the Registrar every year. A firm, private
company or an unlisted company can convert itself into a LLP.
14. Law of Limitation: Law of limitation limits the period within which a legal action can be intiated
against the borrower for recovery of loan / advance. Please note that these are limitations on actions
i.e., proceedings in Court of Law. They are bars to remedies as distinguished from rights which may
continue to be exercisable when no legal action is required, e.g., realization of securities when there
is a power of sale and the title can be transferred without recourse to the court. When the period of
limitation as applicable in a particular case has expired the advance becomes time barred or statute
barred. Any suit filed after expiry of period of limitation shall be dismissed by the court with or without
costs. It is the responsibility of the bank Manger/Credit officer to ensure that the loan documents are
not barred by Limitation, for the purpose, each account has to be diarised for follow up and obtaining
debt acknowledgement letter or part payment to keep the documents alive.
The advances which are secured against the D.P. Note becomes time barred after 3 years from the
date of D.P.Note. For a Term Loan the limitation starts from the date, the instalment or interest falls due and
the period is 3 years. In the case of Guarantee the limitation is 3 years from the date of demand/invocation.
For mortgage the limitation period is 12 years from the date the mortgage debt falls due.
EXTENSION OF PERIOD OF LIMITATION
Right of action may be revived by :
a) Fresh set of documents: A fresh set of documents must be obtained well before expiry of three
years. Under no circumstances, the documents should be kept blank as it would not help in avoiding
the law of limitation.
b) Acknowledgement of debt (U/s 18 of the Limitation Act) : Letter of acknowledgement of debt
obtained before the expiry of the original documents will revive the debt. Where acknowledgement is
taken the period of limitation shall start running from the date of acknowledgement and not from the
date of the original documents. The acknowledgement must comply with the following requirements in
order to extend the period of limitation. It must be subsisting debt i) in writing ii) signed by the borrower
iii) addressed to the lender(Bank) iv) bearing revenue stamps of appropriate value. The acknowledgement
binds only those persons who have signed it. In case of joint debts, if the acknowledgement is not
signed by all the borrowers, the advance will be recoverable only from those who have signed it. In case
of guaranteed debts, the signature of the guarantor shall also be obtained on the acknowledgement.
The acknowledgement obtained after the advance has become time barred, shall not be valid for
extension of the period of limitation. Admission of liability by a Company in its balance sheet is also a
good acknowledgement for the purpose of limitation.
c) Part Payment (U/s 19 of the Limitation Act) : Part payment also extends the period of limitation,
where part amount, either in respect of principal or interest etc., has been deposited by or under the
authority of borrower, it shall revive the debt and the limitation period will start running from the date
on which such payment has been made.
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STAMPING OF DOCUMENTS
The Indian Stamp Act 1899 prescribes payment of Stamp Duty on defined documents i.e. Demand
Promissory Notes, Promissory Notes, Bills of Exchange payable otherwise than on demand and receipts
etc. Whereas on other documents like agreements, bonds, mortgage deeds, sale deeds conveyance,
lease or agreement to lease and acknowledgements etc., the payment of Stamp Duty is governed by the
Stamp Act of the respective State(s) where the document is executed.
The cardinal principle of Stamping is that all instruments chargeable with Stamp Duty and executed
by any person in India, should be stamped properly before execution. The stamping of a document is
required under the Stamp Act either prior or at the time of execution of document. In case, it is not carried
out the document is rendered defective under the Stamp Act. As to the effect of non stamping a document
or inadequately stamped documents, there are two categories; the first category, consists of the documents
which if unstamped or inadequately stamped, are not at all admissible in evidence and for all practical
purposes are a nullity. The defect of stamping i.e. not stamping or under stamping cannot be cured for
such documents, under Sec.35 of the Indian Stamp Act. Such documents are Promissory Notes, bill of
exchange and documents required to be stamped with a duty of 10 paisa or less. Special care should be
taken in stamping such documents at the time of execution and it should be ensured that they are duly
affixed with adequate and proper Stamp Duty at the time of execution.
The Second category of documents is one in which the defect in stamping can be cured, i.e. they are
not rendered unusable and inadmissible in evidence, in case they are unstamped or inadequately stamped.
Documents other than those referred under its category above fall in this category. Such documents can
be admissible in evidence by the Courts on payment of penalty, which may be at the maximum ten times the
duty chargeable. If however, such documents are not admitted they will be impounded and sent in original
to the Collector of Stamps for doing the needful. The Collector shall inquire payment of the proper duty as
well as penalty and after collecting the duty and the penalty they shall be returned to the Court/authority
who originally impounded the same. However we run a risk of delay and loss of documents during the
process of impounding for which the Stamp authorities are not responsible.
The Stamp Act not only requires payment of adequate Stamp Duty but also requires that it should be
properly affixed, cancelled and the stamp should be of the correct description i.e. they may be adhesive,
special adhesive, embossed, engraved, general etc. For affixing on DPN, Receipts, Acknowledgements of
debts, Revenue Stamps can be used which are available in Post Offices. Special Adhesive Stamps can be
affixed on the printed document formats in the nature of agreements, etc., such stamps are available with
the treasury. Non-Judicial Stamp Papers can be used for writing/typing documents like agreements,
conveyance, lease deeds and mortgages etc., and these Stamp Papers can be purchased from Collectors
/Sub Registrar office or Authorised Stamp Vendors.
The Stamp law requires strict adherence to cancellation of Stamps cancellation implies that any
Stamp affixed on any documents should be cancelled in such a manner that it cannot be used again. A
document is deemed to be unstamped if the stamp is not cancelled or improperly cancelled i.e., not cancelled
in a way that it cannot be used again. To avoid such improper cancellation, in case of revenue stamps, they
should be signed across the stamp by the executants in such a way that part of the signature comes on the
stamp and part on the document. Merely putting a cross or a line is not proper cancellation and should be
avoided. In case of special adhesive stamps they should be cancelled immediately on affixing by putting
date or by signing by the proper officer or in any other effectual way like perforation. Proper officers are
designated authorities or officers so designated under the Stamp Act by the State Government.
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The documents which are not executed in India are not subjected to the affixing of Stamp Duty under
the Indian Stamp Act, however once the document executed in a foreign country is received in India, it is
required to be got stamped within three months of its receipt in India, by producing it to the Stamp Office of
the place where it is to be acted upon in India.
Another interesting question arises as to the quantum and affixing of Stamp Duty when a document
is required to be executed by two persons situated/residing in different States in India. In such cases, the
documents are to be stamped with the Stamp Duty of the State where it is signed first. It is then sent to the
second State for signature of the other party. If in the Second State the duty on the document is higher than
in the first State, the excess amount will have to be paid, before the person, in the second State signs it.
The Document is required to be sent to the stamps office along with the amount of deficit Stamp Duty and
then the Stamp Office certifies the document.
Sometime more-so in consortium documents the borrower request for execution of documents in
State other than the one in which the lending Branch / Bank is situated to gain advantage of lower stamp
duty applicable in those other State. This is an unhealthy practice and should not be followed, as the
moment the document is brought to the State where the lending is to take place, stamp duty of that State
becomes applicable and the document requires stamping of that State by affixing the difference in stamp
duty within three months. State of Maharashtra has even made difference in Stamp duty payable on
photocopies of documents brought in the State.
Stamp Duty on a document can be adjudicated upon by the Collector of Stamps of the State or other
Stamp Authorities. Adjudication implies examining the document whether it is properly stamped. When
there is any doubt as to the amount of duty payable under the Act in respect of any instrument, it may be
brought before the Collector of the place for his opinion as to the proper stamp duty with which it is
chargeable. The Collector is bound by section 31 of the Act to determine the duty with which the instrument
is to be charged, upon payment of such fee as prescribed. A certificate is affixed on the document by the
adjudicator when the document, whether stamped or not, is brought to the collector within one month of its
execution and after the duty determined there on, is paid.
Under the Stamp Act, the Collector has powers to order inspection of registers, books, records,
papers, and documents or proceedings held by a Public Officer in his custody for the purpose of checking
fraud or omissions in relation to Stamp Duty. He can also order seizure of documents after a notice of
thirty days.
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REGISTRATION OF THE SECURITIES / MORTGAGE / CHARGE
WITH THE VARIOUS STATUTORY BODIES ETC.
1. Registration of Memorandum of Deposit of Title deeds with the Registrar of Assurances : -
a) Registration of Memorandum of deposit of title deeds is not compulsory under section 17 of the
Registration Act. However, as registration of Memorandum of Deposit of title deeds acts as a
notice to the Public at large, of the security created in Bank's favour registration of the Memorandum
has been introduced by the Bank in specified States
b) The Memorandum of Deposit of Title Deeds for Mortgage by deposit of title deeds by the Mortgagor
with the Bank has to be registered with the Registrar of Assurances in the States of Andhra
Pradesh, Telangana, Tamil Nadu, Karnataka, Maharashtra, Gujarat and Madhya Pradesh.
c) Proper stamp duty has to be affixed on the Memorandum (RF 255 / 255B) AB 10 / 11 as per the
Stamp Act applicable to the States.
d) For guidance on registration of RF 255 & RF 255 B in AP & payment of Stamp duty Circular
No. 324, Ref. No. 11/4 dated 1.1.2010 has to be referred.
e) After registration of mortgage in favour of the Bank in Equitable mortgage and in Registered
Mortgage, Branches have to necessarily obtain an Encumbrance certificate from the Sub
Registrar's office and verify/check whether our charge is reflected on the records or not.
2. Registration with Central Registry (CERSAI)
a) All mortgages created/ modified/ satisfied by deposit of title deeds have to invariably be registered
with the Central Registry within 30 days of creation / modification / satisfaction of the mortgage by
paying the requisite fees. Filing/registration of transactions with the Central Registry is applicable
only to transactions/financial assets covered by the SARFAESI Act.
b) In cases where the mortgages are not registered/ modified/ or satisfied within the period of thirty
days, the Central Registrar/Government on an application in the specified format, may allow the
registration/modification/ satisfaction for another period of thirty days on payment of additional
fees as specified in the Central Registry Rules. Incase the mortgage is not registered with the
Central Registry within 30+30 days, Penalties @ Rs. 5000/- per day for the period of
delay / default may be levied by CERSAI.
c) Registration of transactions with the Central Registry under the SARFAESI Act shall be in addition
to the existing registration requirements under various laws.
d) Attention is also drawn to Master Circular No. 435, Ref. No. 11/06 dated 30.1.2013,
Circular No.88, Ref No.11/02 dated 3.6.2013, and Circular No.153, Ref No. 11/04 dated 16.7.2013,
Circular No. 339, Ref No. 11/6 dated 22.12.2014, Circular No. 395, Ref No. 11/09, dated 12.2.2015
on Registration of Charges with the Central Registry under SARFAESI Act.
3. Registration with the Registrar of Companies (ROC)
a) If the borrower is a Company, the charges created on the Company's assets thereafter have to
be registered with the ROC under Section 77 of the Companies Act 2013 (Earlier Section 125 of
the Companies Act 1956) by filing the requisite Form(8) CGH1 digitally on the website
www.mca.gov.in within 30 days of creation of charge. Further, the Registrar is empowered to
allow the Company to register the Charge within a period of 300 days from the creation of security/
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charge on payment of additional fees. In case the charge is not registered within the aforesaid
period U/s. 87 of the Companies Act 2013, Central Government can in justifiable cases extend
the time for Registration.,Similarly in the event of satisfaction of charge Form CHG 4 has to be
filed by the Company. For the purpose the Mortgagor has to file the requisite form with the
prescribed fee, a copy of the Memorandum of Entry or the registered mortgage deed as the case
may be. The application for registration of charge has to be authenticated through the digital
signatures of both side representatives.
b) Branches to ensure that the Pledge created by the Company of its assets also requires to be
registered with the ROC as per the Companies Act 2013.
c) Branches should ensure that the details of the mortgage / hypothecation are filed with the Registrar
of Companies.
4. Discharge of Mortgage
a) In case of Registered Mortgage once the loan amount secured by mortgage is totally repaid by
the borrower, the mortgage would be discharged and the mortgage property should be released,
and a Mortgage Satisfaction deed is to be registered with the concerned Sub Registrars Office.
b) In the accounts where charge is registered with the ROC / CERSAI etc., whenever the loan
amount is totally recovered, satisfaction of charge is to be reported to the ROC / CERSAI and
necessary forms have to be filed for satisfaction of charge with the ROC / CERSAI.
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MODES OF SECURING ADVANCES
The following are the different modes of securing Advances :-

1. PLEDGE : Pledge is defined in Section 172 of the Indian Contract Act 1872. Pledge is bailment of
goods as Security for payment of a debt or performance of a promise.
Bailment is the delivery of goods by one person to another for some purpose, upon a contract
that they shall, when the purpose is accomplished, be returned or otherwise disposed of according
to the directions of the person delivering them.
2. HYPOTHECATION : Hypothecation is defined in Section 2(n) of the SARFAESI Act 2002.

Hypothecation means a charge in or upon any movable property existing or future, created by a
borrower in favour of a secured creditor without delivery of possession of the movable property to
such creditor, as a security for financial assistance and includes floating charge and crystallization
of such charge into fixed charge on movable property.
3. LIEN : Lien is the right to the Creditor to continue to retain the goods or securities belonging to the
debtor which are in the possession of the Creditor till his dues are paid. Right to Lien is lost when
possession is lost. Lien is of two types :
(a) Particular Lien : It is a right to retain the goods for a particular or specific dues from the
borrower and not for the other dues from him.
(b) General Lien : It is a right to retain the goods and securities belonging to the debtor for all
dues payable by him. Section 171 of the Indian Contract Act 1872 deals with the General
Lien of Bankers, Policy brokers etc.
4. MORTGAGE : Mortgage is defined in Section 58(a) of the Transfer of Property Act 1882.
A mortgage is the transfer of interest in specific immovable property for the purpose of securing
the (i) payment of money advanced or to be advanced by way of loan, (ii) existing or future debt,
(iii) performance of an engagement which may give rise to a pecuniary liability. There are six
types of mortgages as described by the Transfer of Property Act. For clarification on Mortgages
and details on the various types of mortgages Master Circular No. 68, Ref. No. 11/1
dated 31-5-2014 may be referred.
5. CHARGE : Charge is defined in Section 100 of the Transfer of Property Act 1882. Where immovable
property of one person is by act of parties or operation of law made security for the payment of
money to another, and the transaction does not amount to a mortgage, the latter person is said to
have a charge on the property.
6. GUARANTEES AND INDEMNITIES : Section 126 of the Indian Contract Act 1872 defines a Contract
of Guarantee as a contract to perform the promise or discharge the liability of a third person in
case of his default. Person giving the Guarantee is called Surety, person on whose behalf or in
respect of whose default guarantee is given is called the Principal Debtor, and the person to
whom the Guarantee is given is called the Creditor.
- 11 -
Section 124 of the Indian Contract Act defines a Contract of Indemnity as a contract by which one
party promises to save the other from loss caused to him by the conduct of the promisor himself,
or by the conduct of any other person.
7. ASSIGNMENT : Assignment is the process by which one can transfer his right / interest / title over
his Actionable claims to another. Section 130 of the Transfer of Property Act 1882 deals with the
process of assignment.
Actionable claim is a claim to any debt (other than those secured by mortgage, hypothecation,
pledge) or to any beneficial interest in immovable property which is not in ones possession (actual
/ constructive), Eg. Book debts, Supply bills, LIC Policy etc.
- 12 -
FACILITYWISE LIST OF LOAN DOCUMENTS TO BE OBTAINED
No. Type of Loan / Facility Documents to Document
be taken Code No.
1 Advances against bills 1. Application for advances in prescribed

format.
2. DPN AB 6/7
3. Agreements for Bills purchase/ AB 14
discounting.
4. Letter of request for purchase/discount AB 15
of bills (to be obtained each time when
bills are presented)
5. Cheque or other negotiable instru-ments
and documents to title like LR/RR/Bill of
lading/invoices/shares and securities etc.,
duly endorsed in Banks favour.
2 Advances against Deposits 1. Application cum take delivery letter. AB 28 A/B/C/D

2. Demand Promissory Note. AB 7A
3. Duly discharged deposit receipt / passbook
2(i) Against third party / joint In addition to documents mentioned in Point no.2
deposits 1. Letter of authority for payment of money AB 24
in case of third party/joint deposits.
2. Letter of authority for release of loan AB 29
to one of the joint holders (wherever
applicable)
2(ii) SOD against Deposits 1. Composite Agreement in addition to the AB 1

documents mentioned in Point no.2(i)
2(iii) Against NSCs, KVP, 1. Application cum take delivery letter. AB 28 A/B/C/D
LIC Policies etc. 2. DPN AB 6/7/7A
3. Composite agreement AB 1
4. Duly assigned/ transferred security
documents as per the format prescribed
by the concerned Authority/Body.
3 Agriculture Credit - PAGCC / 1. Application for Agrl. Credit in prescribed

Crop Loan format.
2. Application for PAGCC in prescribed
format.
3. Composite Agreement (Agl) AB 2
4. DPN AB 6/7
5. Memorandum of deposit of title deed AB 10/11
in case of Equitable Mortgage
6. Power of Attorney for deposit of title deed AB 12
7. Revival Letter AB 65
4 Agriculture Term Loan 1. Application for Agricultural Credit and
- Minor Irrigation advances in prescribed format.
- Farm mechanization 2. Composite Agreement (Agl.) AB 2
- 13 -
be taken Code No.
- Pisiculture, Sericulture 3. Offer of Security AB 9

- Horticulture and Plantation 4. Memorandum of deposit of title deed AB 10 / 11
crops in case of Eq. Mortgage
- Milch Cattle and live stock 5. Mortgage Deed in case of Registered AB 13
- Gobergas Plants Mortgage.
- Land Development
- Poultry Activity
5 Agriculture Gold Loan 1. Application for Agricultural Gold Loan. AB 32

2. DPN AB 6/7
3. Risk Letter wherever applicable. AB 31
4. Declaration from Borrower AB 62
5. Right Relinquishing Letter AB 33
(wherever Necessary)
6 Advance against documents 1. Application cum take delivery letter. AB 25

of title of goods. 2. DPN AB 6/7
3. Composite Loan Agreement AB 1
4. Rent Letter AB 26
5. Joint Hindu Family Letter or Partnership AB 18 or AB 19
Letter Wherever necessary.
6. Documents of title to Goods duly
endorsed in favour of the Bank (RRs,
LRs, Bill of Lading, etc.)
7. Godown Certificate (for Key Loans) AB 38
7 Advance against Shares 1. Application cum take delivery letter AB 25

2. DPN AB 6/7
3. Letter of Lien AB 27
4. Declaration of Share Risk Letter and
Right Relinquishing Letter.
5. Noting of Lien to the Company
6. Letter of Consent
7. Share Transfer deed in blank Signed
by the shareholder.
8. Letter of Pledge / transfer of shares for
shares held in demat account
8 Bank Guarantee 1. Letter of Issue of Guarantee AB 20

2. Counter Guarantee to be executed by AB 21
the Party
3. Bank Guarantee Form (to be
executed by the Bank).
4. In case of Advances to Company - also AB 22 (CHG-1)
obtain
- 14 -
be taken Code No.
9 Clean Advances 1. Application for advance in prescribed

format.
2. Composite Agreement AB 1
3. General Form of Guarantee if AB 8
required
4. DPN AB 6/7
10 Demand Loan against 1. Application for advance cum Take AB 25

Merchandise delivery letter.
2. DPN AB 6/7
3. Letter of Lien AB 27
4. Letter indicating Banks right to cancel AB 42
limits, modify terms etc.
11 Educational Loans 1. Application for Educational Loan in

prescribed format.
2. Education Loan Agreement AB 3
3. Deed of Assignment AB 46
(To be stamped)
4. Special Power of Attorney AB 47
for aboard Study.
5. General Form of Guarantee, AB 8
(wherever applicable)
6. Performa letter to be obtained from AB 63
minor after attaining majority.
12 Foreign Bills Purchase 1. Agreement for Bills purchased AB 14

and Discounted 2. Letter of Indemnity. AB 61
3. Shipping Documents (Bills of
Exchange, Bills of Lading, Certificate
of Origin etc.)
13 Finance to Flat and 1. Application for Advance

Independent Villas 2. DPN AB 6/7
developed by Reputed 3. Composite Agreement AB 1
Builders 4. Tripartite Agreement among Developer, AB 48
Borrower and Bank.
14 Gold Loans 1. Gold Loan Application AB 32

2. DPN AB 6/7
3. Risk Letter AB 31
4. Declaration AB 62
5. Right relinquishing letter AB 33
(wherever necessary)
6. Letter of authority AB 24
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be taken Code No.
15 Housing Loans 1. Application in prescribed format.

2. Housing Loan Agreement AB 4
3. Memorandum of deposit of title deed AB 10 / 11
4. General Form of Guarantee if AB 8
required
16 LC Limit 1. Application cum Agreement (Stamped) AB 66

2. Invoice Copy
3. Composite Agreement AB1
17 Loans to Co-op Societies / 1. Application for Advance in prescribed

Farmer service societies/ format.
Co-op lift irrigation AB 57
2. Agreement for Co-op Societies
Scheme.
3 Credit Limits Statement
4. Application for Withdrawal
18 Mortgage Loan 1. Application for Advances

2. Offere of Security AB 9
3. Demand Promissory Note AB 6 / 7
4. Memorandum of deposit of title deed AB 10 / 11
in case of equitable mortgage
5. Mortgage deed in case of Registered
AB 13
Mortgage
6. Power of Attorney for deposit of Title
deeds wherever necessary. AB 12
8. Joint Family Letter or partnership letter AB 18 / 19
19 Motor Vehicle Loans 1. Application for advance in prescribed

format.
2. Vehicle Loan Agreement AB 5
3. Letter of authority for payment to dealer. AB 36
4. Letter for registering Banks RTA FORMAT
Hypothecation / hire purchase, with RTA.
5. Letter enclosing pay order to dealer AB 64
6. General form of Guarantee if required AB 8
- 16 -
be taken Code No.
20 OCC & KCC 1. Application for advance in prescribed

format.
2. DPN AB 6/7
(as applicable)
4. Take Delivery letter (to be taken each AB 25
time goods are taken under pledge)
5. Rent Letter (wherever necessary) AB 26
6. Godown Certificate AB 38
21 Overdraft Against Book 1. Application for advance in prescribed

Debts format.
2. DPN AB 6/7
3. Composite Loan agreement AB 1
22 Prepaid Acquisition Facility 1. Application for Prepaid Acquisition

to Merchant Establishments 2. DPN AB 6/7
against Credit Card 3. Pre paid Acquisition Agreement AB 45
4. Request letter for pre paid Acquisition. AB 44
(to be obtained from the merchant
establishment)
5. Limit Cancellation letter. AB 42
23 Personal Loans / 1. Application for advance.

Consumer Loan 2. Agreement AB 35
3. DPN AB 7
4. Letter of undertaking from borrowers AB 37
employer.
5. Letter of authority to debit account AB 36
6. Letter of authority for payment (in case AB 24
of co-obligation).
24 Packing Credit 1. Application in prescribed format.

2. DPN AB 6 / 7
3. Application for Drawings AB 59
4. Extended Packing Credit Form AB 67
(Wherever Packing Credits are
allowed on clean basis)
5. Letter for Payment of Duties etc., AB 64
6. Composite Agreement for Multiple AB 1
facility including Packing Credit
7. For Packing Credit Facility only AB 58
- 17 -
be taken Code No.
25 Rent Receivable 1. Application

2. General Power of Attorney AB 49
3. Letter of Undertaking AB 50
4. DPN AB 6/7
5. Acceptance of General Power of AB 51
Attorney in favour of Bank by
Lessee / Tenant
7. General form of Guarantee if required AB 8
8. Equitable mortgage AB 10
9. Mortgage deed in case of registered AB 13
mortgage
26 Reverse Mortgage 1. Application
2. Reverse Mortgage Loan Agreement AB 52
3. Equitable Mortgage AB 10
4. Mortgage deed in case of Registered AB 13
Mortgage
5. WILL by owner of property in favour of
spouse / co-applicant if loan applied
jointly and title is in single name.
27 SHG 1. Loan Application

2. Loan Agreement AB 54
3. Inter se Agreement AB 55
28 Term Loans 1. Application for advance

29 Trust Letter Facility 1. Trust Letter Agreement with Receipt AB 34

2. DPN (in case of Partnership account AB 6/7
all partners should sign)
30 Advance against 1. Application for Advance

warehouse receipts / 2. DPN AB 6/7
cold storage / Kisan 3. Composite Agreement AB 2
Sampathi 4. Bipartite Agreement between warehouse AB 53
and Bank wherever necessary
5. General form of Guarantee AB 8
(wherever applicable).
6. Wharehouse receipt
31 SOD against gold 1. Gold Loan Application AB 32
ornaments 2. DPN AB 6/7
3. Risk Letter AB 31
4. Declaration AB 62
5. Righ relinquishing letter (wherever AB 33
necessary)
6. Letter of authority (whenever necessary) AB 24
- 18 -
GUIDELINES FOR FILLING UP VARIOUS FORMS
COMPOSITE AGREEMENT - AB 1
With an object to simplify the procedure of Documentation and avoid multiple documents and letters to be
obtained at branches, a Composite Loan Agreement has been devised.
The Composite Loan Agreement may be obtained as and when the borrower is sanctioned one or more of
the following facilities namely, OCC, KCC, Term Loan, Packing Credit, Demand Loans, Over Draft, Bank
Guarantee, and Letter of Credit, fresh Demand Promissory Note (DPN), may be obtained in addition to
Composite Agreement wherever necessary.
As the Composite Agreement does not substitute all the documents, Bills Purchase Agreement AB 14,
Rent Letter AB 26 and Godown Certificate AB 38, Counter Guarantee may be taken in addition to
Composite Agreement..
In the Composite Agreement, the details of the properties secured to the Bank are to be mentioned in the
respective schedules, by way of annexure/s.
They are as follows :
Schedule No. Nature of Facility/Security Details to be furnished in the Annexure

to be attached to the schedule
I, II & III For OCC, KCC and Packing Credits Statement of stock as on the Date of Document
IV Motor Vehicles Loan / Hypothecation Description of Vehicles, Brand Name, Engine
of Motor Vehicles Chassis No., Registration No. and value.
V Hypothecation of Machinery Description of the Machinery existing / to be
purchased
VI Over Draft / Demand Loan / Cash Statement of Book Debts, Receivables and
Credit (wherever required) other claims as on the date of documents.
However, for all other Loans / Facilities, where single facility is only sanctioned, prescribed individual docu-
ment may be obtained.
The Agreement has to be stamped as an 'Agreement' with the applicable stamp duty prevailing in the
respective state. If hypothecation / pledge attracts Ad Valorem stamp duty in the state concerned, the same
has to be stamped accordingly.
COMPOSITE AGREEMENT (for Agriculture) - AB 2
This can be used for the various type agriculture Loans given in Page-2 in AB2. It can also cover other
facilities / non-fund limits with entire description under point No.8. The document can be used for one or
more of the agricultural loan/facility. This agreement requires stamping unless otherwise exempted in the
respective State.
The agreement has to be stamped as an Agreement with the applicable stamp duty prevailing in the
respective State. If Hypothecation / Pledge attracts Ad Valorem Stamp duty in the State concerned, the same
has to be stamped accordingly. It may be mentioned that in majority of states stamp duty has been reduced
for Agriculture Loan. Branches should get the same examined by the local counsel and affix the required
stamp duty.
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EDUCATION LOAN AGREEMENT - AB 3
This can be used for the Education Loan. The Agreement has to be stamped as an 'Agreement' with the
applicable stamp duty prevailing in the respective State. The document has to be obtained through the
natural/Legal guardian in case the borrower/student is a minor. The minor on attaining majority, has to give
confirmation of having availed the loan.
HOUSING LOAN AGREEMENT - AB 4
This can be used for the Housing Loan for construction of a residential house / acquiring a new housing unit
/ carrying out repairs / to be given to the house owned by the borrower/s. The agreement has to be stamped
as an 'Agreement' with the applicable stamp duty prevailing in the respective state.
VEHICLE LOAN AGREEMENT - AB 5
This document is required to be stamped as Hypothecation Agreement as per the local Stamp Act of the
State. This can be used for personal Vehicle Loan. The details to be given in the schedule i.e the registration
number etc will not be available at the time of entering into the agreement, a letter in the form of an undertaking
has to be obtained from the borrower that he would provide the said details to the Bank immediately as soon
as the said vehicle is delivered or registered with the Registering Authority. As soon as the borrower submits
the entire details required in the schedule, the same has to be annexed to the agreement, which shall form
part of the agreement as an Addendum.
PROMISSORY NOTE - JOINT AND SEVERAL - AB 6 (RF 210)
Promissory Note is a must for a demand loan. The document is required to be stamped with a Revenue
Stamp. AB 6 is to be obtained when advances are made to partnership firms, limited companies, clubs and
associations. In other words, this form is to be obtained to bind two or more persons representing a body
like, partnerships, associations, companies, etc. But if the borrowing is by an individual or individuals or with
a co-obligant without reference to any "body" as the borrower, a separate form AB 7 is to be obtained.
PROMISSORY NOTE - INDIVIDUAL - AB 7 (RF 211)
This is a Promissory Note to be obtained in case of loans allowed to individuals with or without co-obligation.
The stamp duty is paid by affixing Revenue Stamp. If the Promissory Note is to be executed by an individual
alone, strike off the word "We" and fill in the space provided, the name of the individual. If co-obligation is
stipulated, strike off the word "I" and enter the names of the borrower and the co-obligant in the space
provided. It is enough if any one of the executants signs on the revenue stamp and the other/s, after him
there under. Additional signatures on the left-hand side need not be obtained.
PROMISSORY NOTE - IN CASE OF FIXED RATE OF INTEREST - AB 7A

OTHER INSTRUCTIONS
(1) In case of Partnership Firms, hitherto our practice is to obtain twice, the signatures of all the partners
along with the per pro stamp of the Firm, both on the right and left hand sides of the Promissory Note.
It is not necessary to do so, hereafter. It is enough if the authorized partner signs per pro across the
revenue stamp. The other partners need not sign after him there under. To make the partners liable
jointly and severally, signatures of individual partners should be obtained on the left hand side of the
Promissory Note without any per pro stamp or the description of "Partner" against the signatures.
Branches are advised to follow the specimen of AB 6 enclosed to these guidelines.
(2) In the case of loans allowed to Partnership Firms with many partners, it may not be possible for the
branches to obtain the signatures of all the partners on the same date of execution of Promissory
- 20 -
Note. Legally, it is not compulsory to obtain the signatures of all partners on the same date of execution.
If the Managing Partner signs on behalf of the firm, the liability is binding on the firm provided there is
an authorisation to that effect. The purpose of obtaining the individual signatures of the partners is to
bind them severally for the debt. It would be binding on the partners even if they have signed
subsequently and at different places also as indicated in the specimen enclosed to the guidelines.
(3) The Promissory Note should not be handed over to the borrower or their representatives for obtention
of signatures of other partners residing elsewhere. In case of need, such Promissory Note should be
sent to our branches where the partners are residing and signatures of those partners should be
obtained in the presence of our Branch Managers after proper identification of the signatory. In other
words, correct identity of the partners is very important. It is not objectionable if such signatory insists
on noting the place and date of execution by him under his signature. For all practical purpose the
date of execution of DPN is the date mentioned at the right hand top corner of the Promissory Note.
GENERAL FORM OF GUARANTEE - AB 8 (RF 291)
It is customary for us, wherever collateral security is not stipulated, to insist for co-obligation / guarantee of
third parties while sanctioning credit limits to parties.
When a co-obligation is stipulated, branches have to obtain signatures of the co-obligants on the Promissory
Note and other important documents. By doing so, the co-obligant is deemed to be a co-borrower.
When a guarantee is stipulated, we do not treat the guarantor as a co-borrower and we obtain a separate
guarantee from the guarantors who guarantee repayment of our advances from the specified borrowers as
per the terms of sanction. This form requires stamping as per the Stamp Act and one form of guarantee can
be executed by two or more guarantors and for all the limits sanctioned to a specified borrower.
OFFER OF SECURITY - AB 9 (RF 256)
Along with the application for advance, where primary or collateral security of fixed asset is offered, a letter
as per AB 9 describing properties offered as security for the advance should be furnished by the owner of
the property. In this letter the applicant declared that properties offered are free from encumbrances and
litigation.
MEMORANDUM OF DEPOSIT OF TITLE DEEDS - AB 10 (RF 255)
This document should be stamped as Memorandum of Deposit of title deed. This is an acknowledgement by
the owner of the properties, that are secured to us, for having created mortgage by deposit of title deeds of
his properties. This format is designed to acknowledge deposit of Title Deeds for single or multiple properties.
Complete details of the Title Deeds taken in deposit, Date of Deposit, Property Description should be given
in relevant column. Any flaw in this acknowledgement may jeopardize our interest by way of loss of security.
As per Transfer of Property Act, the owner of the properties has to deposit the title deeds in a notified area.
The following precautions should be carefully observed:
1. This letter of acknowledgement should invariably be addressed to the branch where advance is availed.
2. 'Place' as mentioned in the right hand top corner of the form, refers to the property owner's place of
residence or where the lending branch is situated.
3. The date in Column 3 should be the actual date of deposit of Title Deed with the Bank at the Notified
Place.
- 21 -
4. 'Date' as mentioned at the right hand top corner of the form should invariably be subsequent to the
date mentioned in the body of the letter at Col. 3.
5. In the third line against "deposited with you at.... "--- the approved/notified place as per Transfer of
Property Act where the title deeds are deposited should be mentioned.
6. In the fourth line reading "at any time be due from"--- the borrower's name should be mentioned.
7. Under list of documents full particulars as per the columns should be noted. In the fourth column
reading "Nature of title deeds and date", particulars regarding number and date of the registered title
deed, names of vendors and vendees should be noted. Under the column 5 ''description of the property",
Survey number, extent of the land or the municipal assessment number, ward number, door number,
superstructure, if any, i.e., tiled house / single storied / doubled storied, should be mentioned.
8. At the bottom of the letter where name and address are to be noted, the names and addresses of the
owners of all the properties should be mentioned, each page requires the signature of all the depositors.
This letter should be signed only by the owner of the properties who deposit their title deeds with us Borrower
should not sign this unless he is the owner of the properties.
If there are joint owners for a single property all the joint owners will sign this form. If the properties belong to
different persons, all the depositors of the different properties should sign the document on each page.
The same procedure applied even if the lending branch is situated at the approved place and the title deeds
are deposited at the same branch also.
MEMORANDUM OF DEPOSIT OF TITLE DEEDS - EXTENSION OF MORTGAGE - AB 11 (RF 255B)
When a borrower has already deposited the title deeds as security for a particular facility / facilities or to a
particular borrower and has already given form AB 10 acknowledging the deposit of the title deeds and
subsequently has agreed upon to extend the security for an additional facility to the same borrower or
facility for different borrower, it will be necessary for us to obtain this letter from all the owners of the properties
acknowledging his intentions to secure the properties for the fresh liabilities also. In all such cases AB 11
has to be obtained from the owner of the properties. This is similar to AB 10 with suitable modifications. Most
of the columns stipulated in Form AB 11 are similar to those of form AB 10 and hence instruction mentioned
in the previous paras relating to AB 10 should be followed here also.
It should be noted by the branches that the original date of deposit of the title deeds as mentioned in the
original AB 10 should be continued in AB 11 also. If the same properties are agreed to be security for the
facility sanctioned to third party, the fact of owner furnishing the properties on that date on account of the
third party may be noted in the title deeds Register, as on the date of AB 11.
In case of fresh property being mortgaged, fresh/additional AB 10 should be taken.
POWER OF ATTORNEY FOR DEPOSIT OF TITLE DEEDS - AB 12 (RF 255A)
For creating equitable mortgage, owner of the properties should deposit the title deeds at an approved
place as per Transfer of Property Act. Sometimes it may not be possible for the owner of the properties to
personally go to an approved place for depositing the title deeds. In such cases he can appoint an agent by
giving a power of attorney to the agent authorizing him to deposit the title deeds and do all incidental and
consequential acts for creating equitable mortgage. A draft for such power of attorney is provided in AB 12.
This power of attorney should be executed on a stamp paper of appropriate value. Even though the title
deeds are deposited by such an appointed agent, AB 10 acknowledging such deposited deeds should be
signed only by the owner of the properties and not by the agent.
- 22 -
REGISTERED MORTGAGE DEED - AB 13 (RF 295)
Wherever securities of immoveable properties are stipulated either primary or collateral, branches obtain
equitable mortgage of properties by way of deposit of title deeds at notified places as per Transfer of
Property Act. In case equitable mortgage is not possible and registered mortgage is necessary. AB 13 shall
be taken and duly stamped as applicable in the State.
The deed should be on a stamp paper of appropriate value and presented for registration. The stamp value
and the registration charges may be ascertained from the local Sub Registrar's Office. The stamp required
is with reference to the loan secured but not the value of the property mortgaged. However in the case of
loans to small farmers against mortgage of lands, certain states granted exemption from stamp duty and
registration charges. In Andhra Pradesh, as at present, a small farmer is defined as a person owing 5 acres
of wet and 10 acres of dry land; and one acre of wet land is equivalent to two acres of dry land. Similar
Legislation is passed by other States also. Branches should ascertain such information locally and act
accordingly. Therefore, in the States where such exemption to small farmers is available, AB 13 need not be
stamped but presented for registration which will also be done free of cost. Where registered mortgage is
obtained no other document like demand promissory note AB 6 / AB 7, letter indicating Bank's right to cancel
limits, etc., AB 42 need be obtained. The Registered mortgage deed is a complete document by itself.
The receipt for delivery of the original document after registration must be obtained in the name of the Bank.
Registered Mortgage deed as per this proforma is a continuing document and it need not be obtained
periodically whenever the loan is renewed. But, if the loan is renewed for a higher amount, a further mortgage
for the enhanced loan amount only should be obtained.
AGREEMENT FOR PURCHASE OR DISCOUNT OF BILLS- AB 14 (RF 289A)
This is a stamped letter of request to be obtained from the parties who are given regular limits for discounting
bills. In this letter, the borrower agrees for our usual terms and conditions stipulated for discounting the bills,
cheques, hundies and other instruments. It is enough if this letter is obtained at the beginning of the year. It
is advantageous for us to obtain such letter even from sundry parties who occasionally offer cheques and
bills for discounting. It is enough, if un authorized partner in the case of Partnership, signs this. Where the
bills cover consignments of essential commodities booked to notified stations, branches should obtain an
application for intimating the arrival of goods at notified stations, by the station authorities to the local
Branch of the Bank.
LETTER FOR PURCHASE / DISCOUNT OF BILLS - AB 15 (RF 279)
This is a letter which has to be taken when bills are purchased / discounted. Each time a bill/s is / are
purchased / discounted this letter of request has to be taken with particulars of bills noted therein.
DRAFT RESOLUTIONS - AB 16 (RF 212 A)
This is a draft resolution to be obtained in case of company advances.
Unless the articles of any borrowing company or the resolution of any company authorizing the borrowing,
stipulates affixing of the common seal of the company as a must, it is not necessary to affix the common seal.
However, if the common seal is affixed it is said to cure several defects, though it is not required under law.
Thus branches have to get the documents affixed with the common seal as far as possible as it is advantageous
for the branch. However if any company borrower, objects to this, as this is not stipulated either in articles of
association or in the resolution for borrowings, branches may not insist on this in such case.
In the case of advances to limited companies whether public or private, registered under Company Act,
registration of charge is necessary in the case of hypothecation and mortgage including Pledge.
- 23 -
In case the authorised borrowing exceed the capital and free reserves for a Limited Company, an authorisation
of the Shareholders in a general meeting is required. The copy of the resolution given to the Bank should
clearly mention the date of the meeting in which it was passed and should be attested by the Chairman of
the meeting in which it was passed or the Company Secretary.
HIRE PURCHASE AGREEMENT WITH FINANCIERS - AB 17 (RF 258)
This is an agreement made with financiers of motor vehicles who lend against hire purchase agreements
and who in turn avail refinance with us. The advance is generally made in the form of secured overdraft.
Arriving at and maintenance of drawing power are clearly discussed in the manual of instructions. Care
should be taken to see that schedule A attached to this form is properly filled in. It is enough if the agreement
is signed by an authorized partner in the case of partnership firms. This requires stamping as an agreement
according to the provisions under Stamp Act applicable in the state
JOINT HINDU FAMILY LETTERS - AB 18 (RF 22)
The purpose of taking this Joint Hindu Family Letter is to bind the joint family for the debt allowed to HUF firm.
Joint Hindu Family Letters need not be obtained in the case of non-Hindus. A HUF cannot be admitted as a
partner in a partnership Firm.
The names of the minor members, both male and female, should be noted at the appropriate column along
with their dates of birth. The names of the major members of the joint family, i.e., both sons and daughters/
brothers should be recorded at the end of the form and their signatures should be obtained. If it is not
possible in any particular case, to obtain the signatures of major daughters, we may waive obtaining of their
signatures. However, the information regarding the particulars of daughters must be recorded therein.
PARTNERSHIP LETTER - AB 19 (RF 23)
Partnership letter are to be obtained, duly filled in the case of advances to partnership firms. This letter is a
declaration by the partners to the effect that the members mentioned therein Constitute the partnership
firm, also informing the Bank the names of authorized persons who are empowered to sign cheques, etc.
These letters should be obtained at the time of allowing advances,. irrespective of the fact that such letter
are obtained at the time of opening of the accounts. All the partners other than the minor admitted to the
benefits of partnership as mentioned in Partnership Deed should sign the Partnership Letter, invariably.
At times, there will be a clause in the Partnership Deed to the effect that any liabilities not shown in the books
maintained by the firm shall not be binding on the firm. In such cases, Branches should obtain a letter from
the firm signed by all the partners that inspite of the clause (mention the clause number in the partnership
deed) in the partnership deed any liabilities under the facilities sanctioned by the Bank shall be binding on
the firm and the partners jointly and severally.
APPLICATION FOR BANK GUARANTEE - AB 20 (RF 144A)
This is a letter of request to be obtained from the customer before issuing a Bank Guarantee irrespective of
whether a suitable limit is sanctioned or not by the appropriate authority. It is a simple letter, and branches
may not feel any difficulty in getting the form properly filled in.
In case of request for issuance of Letter of Comfort similar format may be obtained with suitable
modifications.
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COUNTER GUARANTEE - AB 21 (RF 145A)
This is a proforma of counter guarantee to be taken whenever a guarantee is issued on behalf of a customer
or for a total guarantee limit as the case may be. This has to be got signed by the customer and also by his
guarantor wherever stipulated. Securities offered for the guarantee, like deposit receipt, shares or other
securities or immovable properties should be taken along with the necessary documents i.e., AB 28A in the
case of deposit receipts, shares, etc., and AB 10 in the case of immovable properties.
REGISTRATION/MODIFICATION OF CHARGE - AB 22 (RF 213)
This is Form No. CHG I of the Companies Act, 2013 and is to be filed by the Company electronically/digitally
on the website www.mca.gov.in for registration/modification of charge in favour of the Bank. This is to be filed
within 30 days from the date of documents. This is very essential and not filling this form with Registrar of
Companies within the stipulated time would deprive the bank of the security for its advances. To be on safer
side, the Creditor generally files the charge over the assets of the Company with ROC after getting the
necessary Form filled up and signed from the borrowing Company. Though an immovable property mortgaged
to the bank as a registered mortgage is registered with the Registrar of Assurances, this registration of
charge with the Registrar of Companies should necessarily be done. Under the Companies Act, 2013
registration of charge with ROC is required even for Pledge and Lien.
LIFTING OF CHARGE - AB 23 (RF 215)
This is Form No. CHG IV of the Companies Act for satisfaction of charge. This has to be filed for lifting of
charge over the assets of the company within 30 days from the date when our debt has been completely
satisfied.
LETTER OF AUTHORITY FOR THIRD PARTY DEPOSITS AB 24 (RF 223A)
This letter of authorization to be obtained from the co-obligant/s in case of deposit loans and priority sector
loans where ever AB 42 is not obtained. For the loans allowed to Partnership it is enough if the Managing
Partner signs this letter on behalf of the Firm. To be on safer side, signatures of all partners should be taken.
APPLICATION - CUM - TAKE DELIVER LETTER - AB 25 (RF 224A)
This is a letter to be obtained in case of advances against merchandise either by way of demand loan or
cash credits. This is an application for advance with aspects of risk on account of loose storage and
deterioration of quality combined. This form can be used in the case of advances against Turmeric stored in
pits. This contains a declaration regarding the ownership of the property, this letter also provides free
access to the Bank for inspection and sampling and to insure the stocks wherever necessary. For the loans
allowed to Partnership Firms, it is enough if the Managing Partner signs this letter on behalf of the Firm.
Other partners need not sign this. Parts which are not relevant to the context should be struck off.
RENT LETTER - AB 26 (RF 232 )
This is a letter to be obtained from the owners of the godowns where stocks secured to the Bank are stored,
confirming that they have no lien on the stocks secured to the Bank towards rent. The letter also provides
for access to the godowns. Rent Letter should be obtained whenever goods are stored in godowns relating
to third parties only.
SECURITY FOR ADVANCES & LOANS - AB 27 (RF 233)
This letter provides general lien to the Bank over the surplus of the securities already lodged or securities
coming into the hands of the Bank subsequently for adjustment of any other liabilities of the borrower to the
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Bank. Even though Bank has a general lien, this letter is to be obtained to put the claims of the Bank beyond
any controversy in future. For example: if a borrower takes a key Cash Credit and subsequently borrows
under Open Cash Credit by obtaining this letter, the Bank will have right of appropriating the surplus security
of the Key Cash Credit towards adjustment of Open Cash Credit liability or vice versa. When multiple limits
are sanctioned to one party, it is enough if the branch obtains AB 27 for one of the sets of documents. In
other words, there is no need to obtain AB 27 in each set of the documents.
AB 28 A/B/C/D APPLICATION-CUM-TAKE DELIVERY LETTER (For Advances Against Deposits, G.P.Notes

Etc.) (RF 239 A/B/C/D )
This letter is to be obtained for advances against deposits, shares, GP Notes, Insurance Policies, etc. This
is an application-cum-take delivery letter. This letter authorizes the Bank to have a lien on the securities and
to adjust the liability out of the proceeds on the due dates of deposits. The letter also authorizes the Bank to
cancel the deposit receipts before due dates if necessary. Duly discharged Deposit Receipt by the borrower
are to be obtained with the application.
LETTER OF LIEN ON DEPOSIT RECEIPT - AB 29 (RF 240 A )
Advances can be made to one or more of the joint depositors against the security of a joint deposit. In all
cases the deposit should be duly discharged by all the joint holders and all of them should sign a letter as
per AB 29 authorizing the advance in favor of the joint holder in whose name the borrowing is proposed.
OVERDRAFT CONTINUITY LETTER - AB 30 (RF 242 )
Branches have to obtain this letter in all cases of overdrafts whether clean or secured. The letter provides
for the continuity of the security of the pronote irrespective of the liability in the account oscillating. This
letter should be invariably stamped with appropriate stamp value. It is enough if the Managing Partner signs
this letter on behalf of the Firm. Other Partners need not sign this. Co-obligants should sign this letter.
RISK LETTER - AB 31 (RF 247)
At most of the Branches where loans against gold jewels are allowed, the appraiser for gold loans will not
come to the Bank and hence Branches are in the habit of sending the jewels to the appraiser through an
employee kept in locked box, for appraising the jewels.
Since the jewels are taken out of the Bank's premises, there is an element of risk in transit. The jewels are
sent to the appraiser's shop / residence at the risk of the applicant for gold loans. Hence this risk letter has
to be obtained from the applicant expressing his willingness for the transit risk. While describing the jewels
item wise it is enough if the total weight is furnished for all the jewels.
GOLD LOAN APPLICATION FORM - AB 32 (RF 250)
This is an application for loans against gold jewels. This Form is a declaration by the borrower for his
ownership and also for the purpose of general lien over the securities. Penal interest clause is provided in
the application itself. Branches are already advised to maintain separate general ledger heads for gold
loans - agricultural and gold loans - non - agricultural.
For the sake of convenience, only one application form is put into use and branches have to strike off the
irrelevant matter as per the purpose of the loan. The letter of application also gives right to the bank to sell
away the jewels after stipulated time and provides for general lien to the Bank on the securities. However,
branches have to obtain prior permission of the Regional / Central Office and follow the stipulated procedures
as mentioned in the manual of instruction before enforcing the right of sale.
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RIGHT RELINQUISHING LETTER - AB 33 (RF 248 )
Gold jewels offered as Security under gold loans, sometimes bear initials / names of persons which do not
tally with the names of the applicants for gold loans. It is obvious that third party, other than the owner of the
jewels, is pledging them for the purpose of borrowing. In such cases bank cannot lend unless authorization
from the true owner of the jewels is produced thereby authorizing the applicant to borrow by duly pledging
those jewels. If this letter is not signed in the Bank before Bank Officials, it required attestation from SDM /
Gazetted Officer.
TRUST LETTER - AB 34 (RF 262)
Trust letter facility is generally granted as a sub limit under Open cash credit, Key Cash Credit and
Documentary Bills Purchased facilities. Limits for trust letter facility will be given to selected borrowers for
lending against trust for receipt of goods or for delivering stocks against trust for payment of the value or
production of documents of title to goods, etc. In all such cases, Branches have to obtain a trust letter for the
sub limit sanctioned under cash credit / packing credit etc. This trust letter should be stamped for adequate
value. This is a continuous document and branches should obtain receipts for deliveries to the borrowers
each time transaction is effected on adequate revenue stamp. It is enough if an authorized partner only
signs this document while the Demand Promissory Note for the limit should be signed by all the partners in
the case of partnership accounts.
PERSONAL LOAN AGREEMENT - AB 35 (RF 267A)
This is the document for personal loans. Hitherto, the loans were on discount basis which was discontinued
some time ago. Hence, suitable modifications in the old document are duly made. Therefore, hereafter,
branches should obtain for personal loans, the agreement in this revised form.
Where there is a co-obligant, he should sign on the Personal Loan Agreement along with borrower. As he is
a joint borrower his name and other particulars should be written under No. 2 of the 1st para.
GODOWN CERTIFICATE - AB 38 (RF 277)
Godown certificate should invariably be obtained for all pledge loans against commodities. This form contains
boundaries of the godown and measurement of the godown in the case of loose storage. It also provides for
quantity stores, market rate, drawing power, loan amount particulars of insurance, total limit of the party and
the liability.
Along with the borrower, it should be signed by the godown clerk, who has locked the godown after verification
of the stocks and Branch Manager for having scrutinized the particulars and permitting the advance.
On the reverse of the form, record for inspection is provided and the officers who conduct monthly inspection
of the godown should mark their initials for having inspected the stocks in the godown.
TERM LOAN AGREEMENTS - AB 39 (RF 293)
Where a loan is repayable in installments, this agreement is to be obtained. Promissory Note is not to be
obtained as the loan is repayable in installments and not on demand. This agreement form covers all the
terms and therefore the other documents regarding Bank's right to cancel limits, to charge extra interest,
etc., AB 42 need not be obtained. However, the additional document regarding the security must be obtained.
Where the security is hypothecation of moveable machinery AB 40 must be obtained. Where the security is
the land or a building or a factory, the acknowledgement of title deeds deposited AB 10 / AB 11 should be
obtained. In the schedule at the end of the form, the particulars of the security obtained i.e., where it is by
way of AB 40 regarding hypothecation of moveable machinery, the date of agreement and the description
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of major items of the machinery or where it is mortgage of the land, building, factory, etc., the date of the
AB 10 or AB 11 must be stated.
But where the original title deeds are not available for deposit, registered mortgage of such properties must
be obtained (AB 13). Therefore where a registered mortgage deed is obtained, this form (AB 39) need
not be obtained.
This format consists of Term Loan Agreement and "Covenants of Co-obligates'. Borrower has to sign the
Agreement part of the format and Co-obligates if any has to sign the "Covenants for Co- bligates'.
This is an old format, present Composite Loan Agreement is preferred to be taken.
FORM OF DECLARATION CREATING A CHARGE TO BE REGISTERED WITH THE TAHASILDAR /

SUB-REGISTRAR - AB 41 (RF 295E)
To facilitate lending to small borrowers, instead of obtaining a Registered Mortgage deed, in some of the
states, the necessary legislation to register the charge over the lands of the borrowers is enacted. Therefore,
on our obtaining the necessary declaration from the borrower, in triplicate, and forwarding the original along
with the duplicate thereof to the Tahasildar/Sub-Registrar, within whose jurisdiction the land is situated, a
valid charge against such property in favor of the Bank would be created. It is not necessary to incur any
charges towards stamp and registration as in the case of usual Mortgage Deeds.
CANCELLATION OF LIMITS - AB 42 (RF 298)
This is a letter authorizing the Bank to cancel sanctioned limits and modify terms of sanction, etc., and also
for charging penal interest on the advance allowed. Whenever Composite Loan Agreement is not obtained
AB 42 should be taken.
AGREEMENTS FOR LOANS AND ADVANCES TO WEAKER SECTION - AB 43 (RF 300)
This is a simple agreement form for advances to weaker sections for various schemes i.e. rickshaw pullers,
cobblers, basket weavers, vegetable vendors, dairy farmers, sheep rearers, etc., either to individual or
societies formed by them, covering all aspects of documentation. This agreement provides for guarantee
also. No other document including a demand promissory note need be obtained if an agreement under
AB 43 is obtained, except a letter of authority where there is a tie up agreement. Although any agreement
form requires stamping, various State Governments have exempted stamping for lending to weaker sections.
Branches have to verify whether any stamp duty is payable according to local Government's Stamp Act.
REQUEST LETTER FOR PREPAID ACQUISITION FACILITY - AB 44
This letter is to be obtained from Merchant establishment duly signed by the borrower or its authorized
signatory.
PREPAID ACQUISITION AGREEMENT - AB 45
The agreement is to be obtained on Stamped paper as applicable in the respective states, signed by the
borrower or through its authorized signatory. In case the applicant is a limited company, the common seal of
the company should be affixed on the agreement in the manner and in consonance with Article of Association.
DEED OF ASSIGNMENT - AB 46
This deed should be obtained from the assignor in Educational Loan and to be stamped as per the Stamp
Rules as applicable in the State.
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SPECIAL POWER OF ATTORNEY (Educational Loan) - AB 47
This Power of Attorney is to be obtained before release of the Loan in case of loan for studies aboard.
Power of Attorney can only be obtained where the borrower attained the age of majority. If Power of Attorney
is executed aboard, it is to be duly authenticated by Indian Consulate in that Country and is to be in stamped
in India within 3 months from date of receipt in India. The Document is to be stamped before execution of
loan documents and as per the Stamp Rules in force.
TRIPARTITE AGREEMENT (with Builder) - AB 48
This agreement is to be obtained for projects with Builder/Developer and executed among developer, Borrower
and the Bank and to be stamped as per rules in force and to be registered. This agreement is to be obtained
for financing to Plot / Flat and independent villas developed by reputed builders.
GENERAL POWER OF ATTORNEY - AB 49
In case of Advance for Rent Receivable, the GPA is to be executed by the Borrower and to be stamped as
per the Stamp Rules in force in the State.
LETTER OF UNDERTAKING- AB 50
In case of Advance to Rent Receivable, Letter of Undertaking to be obtained from the Borrower directing the
Tenants / Lessees to pay the rent directly to the Creditor Bank.
LETTER OF ACCEPTANCE - AB 51
In case of advance for Rent Receivable, Letter of Acceptance of GPA executed by the Borrower in favour of
the Bank to be obtained from the Lessee / Tenant.
REVERSE MORTGAGE LOAN AGREEMENT- AB 52
This Agreement is to obtained from single borrower or jointly with the spouse and to be stamped as per rules
in force unless otherwise exempted in the respective State.
BIPARTITE AGREEMENT - AB 53
This agreement is obtained for the loan / advance under KISAN SAMPATHI Scheme. This Bipartite Agreement
is to be executed between the Warehouse and Bank wherever necessary. The agreement requires stamping
unless otherwise exempted in the respective State.
SHG LOAN AGREEMENT - AB 54
This loan agreement is to be obtained in SHG advances and has to be signed by all the members of SHG.
The agreement is to be stamped as an agreement as applicable in the State.
INTERSE AGREEMENT - AB 55
This interse agreement has to be executed by all the members of SHG and should be witnessed. This
agreement should be stamped as GPA as applicable in the State.
AB 56 (AGF 13)
This is an agreement entered between the borrower and the milk project authority, wherever there is a tie-
up arrangement in connection with dairy farm loans / advances. This should be obtained along with the
Demand Promissory Note, etc., from the borrower and kept on record.
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LOAN AGREEMENT FOR CO-OPERATIVE SOCIETIES - AB 57 (AGF 14)
This agreement has to be obtained when the lending is to a co-operative society or Farmers' Service
Societies or co-operative lift irrigation societies-both for short term and long term purposes. The schedule of
repayment should be properly filled in and for any doubt you may refer to the specimen form. This should be
signed by the authorized person, generally the Chairman and the Secretary of the Society. The seal of the
society has to be affixed. A separate promissory note need not be obtained wherever the agreement is
signed by the borrowing Society. This agreement need not be stamped since co-operative societies are
exempted from Stamping the agreement.
CREDIT LIMIT STATEMENT AND APPLICATION FOR DRAWAL
The borrowing co-operative society after executing the agreement as per AB 57 has to submit these two
statements for drawing the amounts from the Bank. These are the standard forms, for the co-operative
Societies. Branches should ensure for obtaining these two forms also before allowing withdrawals
FOR DUTY DRAWBACKS, UNDRAWN BALANCES AND CASH INCENTIVES
It is customary for Banks to sanction advances against duty draw-back, undrawn balances and cash incentives
to the exporters. Generally, such advances are allowed by way of clean overdrafts. Branches have to follow
the instructions as conveyed through circulars from time to time. In all such cases, the promissory note and
overdraft continuity letter should invariably be obtained along with letters of entitlement, declaration etc.
Packing Credit Agreement - AB 58 (FEF 1)
In case borrower is availing multiple facilities along with Packing Credit facility, Composite Loan Agreement
is to be taken in place of this Packing Credit Agreement.
In case this document is taken, it should be stamped as an agreement as applicable in the State. Fresh
AB 58 need not be taken every time when Packing Credit facilities are allowed. All the schedules in this
document should be completely filled at the time of execution of this document and properly signed along
with the name of the person executing the documents.
If guarantee is stipulated, general form of Guarantee should be taken and the same has to be duly signed
by the guarantor.
APPLICATION FOR DRAWINGS - AB 59 (FEF 2)
This form has to be obtained from the borrowers every time drawings are allowed against letters of credit /
contracts lodged with the Branch. All the particulars as required in this form should be filled up as far as
possible. It is enough if an authorized Partner, in the case of advances to partnership firm, signs this form.
LETTER OF REQUEST FOR ADVANCE TO COVER DUTY AND FREIGHT ETC. - AB 60 (FEF 4)
Occasionally, Head Office permits branches to allow advances to the packing credit borrowers towards
payments of export duty and freight of the consignment. Form AB 60 has to be obtained before allowing
such advances, from the borrowers. Amounts thus advanced should be debited to relative packing credit accounts.
LETTER OF INDEMNITY - AB 61 (FEF 5)
This letter of indemnity has to be obtained by the branches at this time of purchasing / discounting foreign
bills for discrepancies in the shipping documents vis-a-vis LC / Contract terms. It is enough, if the authorized
partner, in the case of Partnership Firm, signs this letter. Separate letters of indemnity should be obtained
for each of the bills.
*Hitherto old number of the documents has been provided for ready reference. However document
should be identified by new number.*
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(To be stamped as an Agreement as applicable to State. In case of Hypothecation,
stamp duty for hypothecation also to be affixed)
AB 1
COMPOSITE AGREEMENT
THIS AGREEMENT executed this......................................day of ............................ Two
thousand .......................................... in favor of ANDHRA BANK, a Banking Company,
constituted under Banking Companies (Acquisition and Transfer of Undertaking) Act 1980,
having its Head Office at Dr. Pattabhi Bhavan, Saifabad, Hyderabad and amongst other
places a branch at .................................
(Hereinafter called the Bank which expression shall include its successors and assigns)
BY
Shri / Smt / Kum ....................................................................................... Son of / wife of /
Daughter of ....................................................................................... aged .............. years
residing at ...........................................................................................................................
Individuals ..............................................................................................................................................
Shri./Smt./Kum........................Son of/Wife of /
residing at ...........................................................................................................................
..............................................................................................................................................
Shri./Smt./ Kum...... Son of /wife of/

residing at ...........................................................................................................................
..............................................................................................................................................
Shri./Smt./Kum........................Son of/Wife of /
residing at ...........................................................................................................................
..............................................................................................................................................
(OR)
Partnership/ M/s ..................................................................................................................... carrying on
others
Business at ..........................................................................................................................
represented by ....................................................................................................................
(OR)
Limited M/s ..................................................................... a Limited Liability Partnership registered
Liability
Partnership
under the Limited Liability Partnership, Act 2008 carrying on business at .............................
.....................................................................................................................represented by
Sri ......................................................... and Sri/Smt ............................................................
(Partners / Designated Partners)
(OR)
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.......................................................................................................Limited, a company
incorporated and registered under the Companies Act 1956 / 2013 and having its Registered
Office at ....................................................................... represented by its
Company ........................................................................................................
Hereinafter referred to as " the Borrower " (which expression shall unless repugnant to the
context or meaning thereof be deemed to include his/her/their respective heirs, executors,
administrators, legal representatives, successors and permitted assigns).
1. WHEREAS at the request of the Borrower(s), the Bank has agreed to finance the
business of the Borrower(s) by granting all or some or any of the Credit facilities in the
manner mentioned herein below.
Facilities (a) Open Cash Credit at any one time up to the limit of ` ...
(b) Key Cash Credit at any one time up to the limit of ` ............................
(c) Packing Credit at any one time up to the limit of ` ...
(d) Overdraft at any one time upto the limit of `...
(e) Demand loan at any one time up to the limit of ` ..
(f) Term Loan at any one time upto the limit of `....
(g) Performance / Money guarantee at any one time up
to the limit of `
(h) Letter of Credit facility at any one time up
to the limit of `
(i) facility at any one time up to the limit of `
in all making a total sum of `...................... (Rupees............................................................
.......................
(Hereinafter collectively and individually referred to as the said credit facilities) for the
purpose of facilitating finance to the Borrower(s) for working capital/fixed capital needs.
(2) And whereas on the condition that the Borrower(s) shall as security for due payment
of total amount as stated in clause (1) above and interest, discount, commission, charges
Creation of costs and expenses payable to or incurred by the Bank in relation thereto hypothecate/
Hypothecation/ pledge by way of first charge all the Borrowers goods, book debts and all other movable
Pledge
assets. And whereas the Bank has requested the Borrower(s) to execute these presents
which the Borrower(s) has/have agreed to do in the manner hereinafter expressed.
NOW THEREFORE THESE PRESENTS WITNESSETH, AS UNDER : -
(1) In consideration of the Bank having granted and /or agreed to grant to the Borrower(s)
all or some or any of the said credit facilities.
Details of It is hereby agreed and declared as follows : -
Securities
(i) all the borrowers present and future Goods produce and merchandise described in
general terms in the Schedule I,II,III hereto belonging to or in the possession or under
control of the Borrower(s) wherever lying, stored and kept in the premises as detailed
in the Schedule or wherever stored from time to time and the goods which shall hereafter
be stored in the said premises in addition to the goods now stored, by way of substitution
or for and in lieu of any goods which may from time to time have been withdrawn and
whether in possession of the Borrower(s) or of the bank or any third party whether in
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Hypothecation / India or elsewhere throughout the World (including all such goods in course of shipment,
Pledge of stocks
transit or delivery) and the whole of the borrowers stock manufactured there from
which now hereafter from time to time during the continuance of this security shall be
brought into, stored or be in or about the Borrower's godowns or premises or with
clearing agents or with any other person/s or company approved by Bank and held on
behalf of Borrower(s) or in the course of shipment, transit or delivery.
Hypothecation of (ii) Vehicles existing and / or those to be purchased out of the Banks finance now in
vehicles possession or will come into possession of the Borrower(s) or any party anywhere to
the order or disposition of the Borrower(s) and as set out in Schedule IV hereunder.
Hyp. to movable (iii) All tangible movable machinery and plant (both present and future) whether installed
Machinery or not and whether lying loose or in cases at site or which may at any time hereafter
during the continuance of the security be installed or lying loose or in cases or being in
or upon or about the Borrowers premises and godowns or wherever else the same
may be or be held by any party anywhere to the order or disposition of the Borrower(s)
or in the course of transit to the Borrower(s) and as set out in Schedule V.
Hyp. of book iv) Book debts and outstanding monies receivables including receivables by way of cash
debts assistance and/or cash incentives under the Cash Incentives Scheme or any other
Scheme, claims including claims by way of refund of customs / excise duties under the
Duty Drawback Credit Scheme or any other Scheme, bills, invoices, documents contracts,
insurance policies, guarantees, engagements, securities, investments and Rights and
Assets now owing to the Borrower(s) and also which may at any time during the
continuance of the security become owing to the Borrower(s) in the course of his/her /
their/its business from anybody including Government more fully described in
Schedule VI.
All or any of the items detailed in I to VI referred to above hereinafter referred to as the
security / hypothecated / pledged properties.
Will be and stand hypothecated / pledged to the Bank by way of First Charge as security
for the payment and discharge by the Borrower(s) to the Bank on demand of all monies at
any time payable by the Borrower(s) under or in respect of all or some or any of the said
credit facilities granted or to be granted to the Borrower(s) and also for all indebtedness or
liabilities of the Borrower(s) to the Bank together with all interest, commission, costs, charges
and expenses payable to or incurred by the Bank including those for the enforcement of
any of the security.
Borrower (2) (a) The borrower(s) engage(s) to hold the goods, relative bills of lading and holding
holding shipping documents and proceeds thereof as agent and Trustee for the Bank and
Goods as trustee
further engage(s) to deal with the goods hereby hypothecated/pledged to the Bank in
accordance with the directions of the Bank.
(b) The Borrower(s) further undertake(s) to deliver from time to time, to the bank, bills of
Delivery of
Documents lading and shipping documents duly endorsed in favor of the Bank relating to the
Under P.C. goods hereby hypothecated/pledged or deliver the goods hereby hypothecated failing
payment of the amount due to the Bank from the realized proceeds of draft sold against
the said goods collected for shipment.
(3) To secure above loans the Borrower(s) has/have executed the Demand Promissory
Notes for the respective amounts as mentioned above by way of collateral security : -
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OPEN CASH CREDIT, DPN DATED :
KEY CASH CREEDIT, DPN DATED :
DPN Dates
PACKING CREDIT, DPN DATED :
OVERDRAFTS, DPN DATED :
DEMAND LOAN, DPN DATED :
..DPN DATED :
.DPN DATED :
(4) The Borrower(s) hereby authorize(s) the Bank to charge and debit the respective facility
account with interest as mentioned below : -
Open Cash Credit : At the applicable Base Rate..% plus spread of ......%
presently at.% p.a. with monthly / quarterly rests.
Interest rate Key Cash Credit : At the applicable Base Rate..% plus spread of ......%
Over drafts : At the applicable Base Rate..% plus spread of ......%

Demand Loan : At the applicable Base Rate..% plus spread of ......%

Letters of Credits : At the applicable Base Rate..% plus spread of ......%

Performance/Money : At the applicable Base Rate..% plus spread of ......%

Guarantee presently at.% p.a. with monthly / quarterly rests.
Term Loan : At the applicable Base Rate..% plus spread of ......%

.. : At the applicable Base Rate..% plus spread of ......%

Such rate of interest shall be charged not only on the advance but also on the cost of
insurance premia and other expenses, charges, costs and fees.
Overdue / 5) The Bank is entitled to charge at its own discretion such higher rate of interest than the
Additional
Interest rate stipulated above, either on the entire outstanding or on portion thereof as it may
fix and Borrower(s) agree(s) to pay the said higher rate of interest .................% p.a.
and also overdue interest at..% p.a.
FOR THE TERM LOAN :
6) The Borrower(s) shall pay interest on the advance or the balance thereof due from
Interest rate time to time at the applicable AB Base Rate ..% plus spread of ..%
for Term presently ..% p.a. with monthly / quarterly / half yearly / yearly rests or such
Loan other rate as may be fixed by the Bank, Reserve Bank of India, small Industries
Development Bank of India (SIDBI), Industrial Development Bank of India (IDBI) or
- 34 -
National Bank for Agricultural and Rural Development (NABARD), National Housing
Bank (NHB) or any other Bank or financial Institutions as the case may be from time to
time which shall be calculated on the daily balance(s) of the said account(s) and shall
be charged to the account(s) monthly / quarterly / half yearly / yearly and it shall then
become part of the principal.
Charges for In addition to the interest stipulated above, the borrower(s) shall pay at 2% or Charges
Premature for at the rate as may be specified by the bank on the amount outstanding for the premature
closure closure unexpired period of term loan, in the event of premature closure of the term loan as
of term loan
premium / charges.
(7) The Borrower(s) agree(s) to pay interest on packing credit facility availed by him/ her/
them as mentioned below:-
a) For first 180 days At the applicable Base Rate..% plus spread of ......%
b) From 181st day to At the applicable Base Rate..% plus spread of ......%
270 / 365th day presently at.% p.a. with monthly / quarterly rests.
Interest rate for
Packing Credit c) Beyond 270/365 days At the applicable Base Rate..% plus spread of ......%
upto date of Export presently at.% p.a. with monthly / quarterly rests.
(Date of Negotiation / Purchase / discount of bills)
d) In case the export At the applicable Base Rate..% plus spread of ......%
does not materialize presently at...%p.a with monthly / quarterly rests from the
date of original advance till date of payment.
The borrower further agrees to pay interest at the rates mentioned above for all facilities
or such other rates and rests as may be fixed by the Bank and / or as per the guidelines
issued by RBI from time to time.
In case of default in paying the instalments /dues or non-adhering to any of the terms
Enhanced rate of and conditions contained herein or Reserve Bank of India directive / Bank rules, agree(s) to
Interest and
waiver of Notice pay interest at such enhanced rate or overdue interest as may be fixed by the Bank. Notice
regarding change of interest and charging of overdue interest is waived by the Borrower(s).
8. The Borrower(s) hereby expressly agree(s) and undertake(s) that in the event of
refinance, with Small Industries Development Bank of India (SIDBI), Industrial
Development Bank of India (IDBI) or National Bank for Agricultural and Rural
Development (NABARD), National Housing Bank (NHB) or any other Bank / Financial
Institution as the case may be has been fully paid back by the Bank, and where any
part of the loan is still outstanding or where any default of repayment is made by the
Borrower to pay interest at higher rates as may be charged by the Bank from time
to time.
9. The Borrower(s) agree(s) that the limit(s) sanctioned or the terms of advance, like rate
Banks right to
Cancel Limits of interest margin, duration, etc., may be revised, cancelled at Banks sole discretion
for any reason whatsoever, including all or any of the following reasons (i.e) to suit the
exigencies of Business or changes in the market conditions or to implement the policies
of the State / Union Government / Reserve Bank of India. On such notice of revision /
cancellation of all or any of the above sanctioned limits or change in any of the terms,
the Borrower(s) agree(s) to pay back the amount(s) due to the Bank and / or abide by
the new or revised terms.
- 35 -
10. The Borrower(s) shall be deemed to have notice of change in the rate of interest whenever
the change in rate of interest / Base rate is displayed/notified by the branches/ Zonal
Office / Head Office in their premises / published in news papers/made through entry of
interest charged in the pass book/ statement of account sent to the borrower.
Expenses 11. The Borrower(s) further agree(s) to pay all expenses and charges such as service
charges, incidental charges, godown charges, godown inspection charges, typing and
postage expenses, legal notice expenses which the Bank may incur.
12. That in case of cash credit, overdraft and demand loan, the Borrower(s) shall, on
demand, forthwith pay to the Bank the outstanding(s) owing to the Bank in respect of
the said facilities inclusive of interest, commissions, costs, charges and expenses. In
case of such cash credit account the Borrower(s) agree(s) that the demand pronote
Continuity of
Security executed by the Borrower(s) in Banks favour for the amount of cash credit granted
and this agreement are to operate as a continuing security for the ultimate balance
with interest thereon that may be payable to the Bank upon the said cash credit /
overdraft account and the said account is not to be considered to be closed for the
purpose of this security and the security is not to be considered as exhausted merely
by reason of the said account being brought to credit at any time or from time to time.
Repayment of 13. The Term loan and any loan payable by installments will be repayable by installment as
Term Loan with stipulated in the schedule VII hereinto attached. The Bank has an option to reduce or
Default Clause
increase installment amount or extend the repayment period within its discretion upon
changes in rate of interest or any other operational reasons. In case of default in
payment of any one installment or any part thereof or any other irregularity on the part
of the Borrower(s) or on the happening of any of the events as mentioned in clause
below the entire balance then outstanding with interest, costs, commissions and charges
shall if the Bank so chooses at once become due and payable.
14. That if the Borrower(s) fail(s) to maintain such margin as hereafter said or if the
Borrower(s) fail(s) or neglect(s) to repay to the Bank on demand the balance then due
to the Bank or any instalment of the principal monies remaining unpaid upon the
respective due date for payment thereof, or interest accrued and remaining unpaid or
any representation or statement of the borrowers proposal being found incorrect or
the Borrower(s) committing any breach or default in the performance or observance of
Events of default
any terms & conditions or provisions contained in this agreement or the Borrowers
proposal or the security or any other terms/ conditions relating to the advance; or the
Borrower(s) entering into any arrangement or composition with creditors or committing
an act the consequences of which may lead to the winding up of the Borrower(s) or
fail(s) to carry out and perform any of his/ her/ their/ its obligations under these presents
or in the event of the Borrower(s) committing any act of insolvency or becoming or
being adjudged bankrupt or insolvent or executing any deed of agreement, composition
or in the event of any distress or execution being levied or enforced upon or against
any of the property of the Borrower(s) whether the said property shall or shall not be
the subject of this security or (whether the Borrower(s) is / are or is / are not a joint
stock company) in the event of any person, firm or company taking any step towards
applying for or obtaining an order for the appointment of a receiver of the Borrowers
property or any part thereof or ( in the event of Borrower being a joint stock company)
if any person, firm or company shall apply for or obtains an order for the winding up on
the Borrower(s) or if any such order is made or any step be taken by any person, firm
or company in or towards passing any resolution to wind up the Borrower(s) or if any
such order is made or any step be taken by any person, firm or company in or towards
- 36 -
passing any resolution to wind up the Borrower(s) or if any such resolution be passed
which ever may first happen or any damage occurring to the hypothecated/pledged
properties from any cause whatsoever.
Banks authority 15. The Borrower(s) agree(s) to maintain sufficient balance/drawing limit in his/her / their
to transfer savings Bank/Current Overdraft/Cash Credit account and hereby authorize(s) the Bank
instalments
to transfer the periodical installments towards Term Loan / other loans repayable by
installments and interest / insurance and any other charges as and when they
become due.
16. The Borrower(s) agree(s) and undertake(s) that the amount under all or some or any
End use of funds
of the said credit facilities will be used only for the purpose or purposes mentioned in
the Borrower(s) proposal and for which it has been sanctioned and the Borrower(s)
further agree(s) that notwithstanding anything contained in this agreement, the Bank
shall have the right to recall the entire amounts under the said credit facilities together
with interest and other charges or any part thereof and /or withdraw the concessions if
any, such as reduced rate of interest, subsidy, in case the loan amount is / has been
used for any purpose other than for which it has been sanctioned or if the Bank
apprehends or has reason to believe that the Borrower(s) has/have violated or is/are
violating the condition.
17. That the Borrower(s) further agree(s) that the Bank may at its sole discretion enter into
Banks right to interse bank participating arrangement with any Bank or Banks or Institutions of its
enter into inter choice without any reference to the Borrower(s). The Borrower(s) agree(s) that such
bank participation
participating arrangements, if any, arrived at, by the Bank with other Bank(s) /
institution(s), shall be a matter between the Bank and the other Bank(s)/ institution(s)
and the borrower(s) is/ are unconcerned with the same. However, the Bank shall be at
liberty to furnish any information relating to the Borrower(s) to such participating Bank(s)/
Institution(s). The Borrower(s) further confirm(s) that notwithstanding such participation
arrangement between the Bank and other Bank(s)/Institution(s) the Borrower(s) shall
be liable to make payment of the entire liabilities to the Bank.
18. Wherever the Borrower(s) for the purpose of availing credit limits creates security in
Contract to the favour of Bank by way of mortgage and Borrower(s) hereby specifically agree(s) that
Contrary to sec.67 the bank notwithstanding that it may hold two or more mortgages executed by the
of T.P. Act
borrower(s) / mortgagor(s) in respect of which it may have right to obtain the same kind
of decree under sec.67 of Transfer of Property Act shall be entitled, to sue and obtain
such decree on any of such mortgages without being bound to sue on all such mortgages
in respect of which the mortgage money shall have become due.
Margins 19. That the Borrower(s) undertake(s) and agree(s) to maintain a margin against the
securities hypothecated as mentioned below as may be specified by the bank from
time to time.
In case of depreciation/shortfall of the security the Borrower(s) undertake(s) to make

good the shortfall by giving other sufficient property agreeable to the Bank as security
or make a cash payment to the Bank and in default there of the Bank may at once or
any time thereafter (without prejudice to the Banks right of suit) sell the hypothecated
securities and apply the sale proceeds towards payment of the said facility account
where depreciation/short fall occurred and interest and monies owing on the said account
and with regard to such sales also clauses in clause 36 shall apply.
- 37 -
20. The Borrower(s) do hereby declare and state that all the information and data furnished
by them for availing the credit facility are true and correct. They unconditionally and
irrevocably agree and give his / her / their consent for disclosure of all / any of the
Banks right to information and data relating to them by the Bank including the Credit facility availed /
Disclose
names of to be availed to Credit Information Bureau (India) Ltd., and / or any other agency /
Defaulters Reserve Bank of India / and or any other person or agency entitled to such information.
The Borrower(s) further unconditionally and irrevocably agree that in case he / she /
they commit(s) default in repayment of the credit facility granted, the Bank and / or the
Resereve Bank of India / CIBIL or any other agency authorized to collect such information
will have an unqualified right to disclose or publish his / her / their name(s) and
photographs as defaulters in such manner and through such medium as the Bank or
the Reserve Bank of India or CIBIL or any other agency authorized in their absolute
discretion may think fit. The borrower(s) is / are aware that the Bank may initiate steps
to identify / declare him / them as Wilful Defaulter in terms of applicable Reserve Bank
of India Guidelines in case of his / heir intentional default.
Further I / We hereby confirm that I / We shall not raise any dispute in what so ever
manner regarding information / details furnished / to be furnished to CIBIL / other
authorities and same is binding on me/us.
Intimation 21. The Borrower(s) shall, during the continuance of this agreement, keep the Bank fully
Regarding place informed of the place or places where the securities described in general terms in the
of Storage of
Stocks Schedule(s) hereto, are stored/installed/ kept from time to time so that the securities in
those places may be deemed to have been hypothecated by way of first charge to the
Bank; and further agree(s) and undertake(s) to keep the Bank informed about the
change of address if any, immediately.
22 That a register of the goods, produce, merchandise, stock, book debts and other similar
assets hypothecated as security as aforesaid shall be kept by the Borrower(s) at all
times open to the inspection of the Bank, in which shall be entered particulars of all
goods, merchandise, produce, stock, book debts and similar assets hypothecated/
pledged to the Bank under this Agreement, that all the said goods and all documents
Banks right to under this security shall always be kept distinguished and held as Banks exclusive
inspect records
property specifically appropriate to this security to be dealt with under the directions of
the Bank. The Borrower(s) shall furnish to the Bank monthly, or at such intervals as the
Bank may require a schedule or copy of all the entries which shall have been made in
the said register/ as well, as statement of stock/book debts which stand hypothecated
to the Bank and as contained in the said register at the close of the previous day and
duly certified under the signature of the Borrower(s) and or his/her/their/its authorized
representative(s). The submission of statement of stock/book debts/other assets from
time to time held by the Borrower(s) will be as agent for the Bank and in nature of
rendering of account by agent to principal and statement so submitted shall be the
returns of the Borrower(s) in his/her/their capacity as agent for holding the securities
hypothecated to the Bank.
- 38 -
Banks right on 23. That the Borrower(s) shall be at liberty from time to time in the ordinary course of
Proceeds of
Hypotheca and / business to sell or dispose of any of the said goods or realize any of the book debts
or book debts from his/her/ their debtors but proceeds of sale of goods sold or the proceeds of book
debts realized shall be held in trust for the Bank and as soon as the same are received
shall be paid to the Bank to the credit of the respective facility accounts under all or
some or any of the said credit facilities.
Maintenance and
24. That the hypothecated/pledged goods/ produce/ merchandise/machineries/ vehicles
insurance of and/ or other movables shall at all times during the currency of the security and so long
Hypotheca
as any money shall remain due and owing under all or some or any of the credit facilities
be maintained in good perfect order, marketable and working condition and kept insured
by them and at the request of the Borrower(s) jointly in the name of the Bank and
Borrower(s) against loss or damage by fire, Act of God and such other risks as may be
required by the Bank or be required by law to the full extent of the value thereof with an
insurance company or companies of repute and approved by the Bank. The Borrower(s)
shall deliver to the bank the relevant policy or policies of insurance duly assigned to
the Bank and maintain such insurance through out the continuance of the security of
these presents. Further if the Borrower(s) intend(s) to insure for any other risk(s) apart
from the risk(s) mentioned above, he/she/they is/are at liberty to do so on the same
terms and conditions stated above.
25. The Borrower(s) shall duly and punctually pay the premium on the policies at least one
week before the same shall become due or payable and hand over the receipt to the
Bank within seven days of payment and the Borrower(s) agree(s) not to raise at any
time dispute as to the extent of the insurable interest of the Bank. If the Borrower(s)
Payment of make(s) any default in effecting such insurance as aforesaid or in renewing any policy
Insurance premia or in payment of such premia it shall be lawful (but not obligatory ) for the Bank to effect
such insurance or to renew or to pay such premia and to keep the hypothecated/
pledged properties in good, perfect, order, marketable and working conditions and
duly insured and to debit the costs, charges and expenses incurred by the Bank for the
same to the Borrowers all or some or any of the said credit facilities account(s) with the
Bank and the same shall be treated as advances secured by this agreement. It is
clarified that obligation to keep the hypothecated / pledged goods and / or mortgaged
security shall be of the Borrower(s) at no point of time or any reason the Bank shall be
responsible / liable to carry out any insurance of the Secured Assets. All sums received
under any such insurance as aforesaid shall after deducting there from of all expenses,
be applied in or towards the liquidation of the balance due to the Bank for the time
being and in the event of there being surplus shall be applied as provided in clause 36
hereof. The Borrower(s) agree(s) that if any money under any such insurance is received
by the Borrower(s) he/she/it/they will pay the same forthwith to the Bank.
26. It shall be lawful for the Bank and its agents without notice and at the expenses in all
respects of the Borrower(s) to enter at any time into or upon the offices, godown,
jaithas, other premises of the Borrower(s) or places of storage whether owned or taken
Right of Access
on lease, of any of the hypothecated properties for the purpose of inspection and/or
checking the hypothecated properties and taking account and inspection of books of
accounts of the Borrower(s) (which the Bank is hereby authorized to do) and it shall
also be lawful for the Bank from time to time as it may deem fit to have all or any of the
- 39 -
hypothecated properties for the time being so hypothecated and charged as aforesaid
valued by the appraiser or the valuer to be appointed or nominated by the Bank and all
such expenses and fees and expenses of such appraiser/ valuer shall be treated as
advances by this agreement and be debited to the Borrowers all or some or any of the
said credit facilities account(s) as the case may be and be payable accordingly and
shall until payments be treated as advance secured by this agreement.
Display to Banks 27. That the Borrower(s) shall cause and in default the Bank may itself cause board or
Name board as boards with the name of the Bank legibly and distinctly printed or written thereof to be
Hypothecate
placed and at all times maintained in a conspicuous portion upon the factory/ godown/
shop and/or other premises of the Borrower(s) indicating that the goods/machineries/
other movables are hypothecated to the Bank.
All the machineries of the Borrower(s) hypothecated and charged to the Bank shall be
treated as movable property and not as an immovable property and shall bear the
name of the Bank indicating that the said machineries are hypothecated and charged
to the Bank. The Borrower shall also exhibit conspicuously in the main hall of the factory
a list showing the items of machineries hypothecated and charged to the Bank.
28. That the Borrower(s) will so long as any monies remain due and owing under all or
some or any of the said credit facilities, carry on and conduct the business and use the
hypothecated properties in a proper and efficient manner.
29. That the Borrower(s) shall not remove or dismantle any of the movables or other
hypothecated properties now in use in the Borrowers premises/factory/ shop without
the consent in writing of the Bank including in cases where such removal or dismantling
Removal /
replacement of shall, in the opinion of the Borrower(s), be rendered necessary by reason of the same
hyp. with the being worn out/deteriorated, injured, damaged or broken and in such case will replace
consent of the
Bank
so worn out/injured, damaged, broken or deteriorated by others of a similar nature and
of atleast equal value and shall also whenever necessary renew or replace all or any of
such hypothecated properties with others of a like nature and value of as now used or
henceforth to be used for the purpose of or in connection with the business of the
Borrower(s) as and when the same shall be worn out, injured, damaged, broken or
deteriorated and shall keep the Bank informed of the replacements.
Banks right to 30. That the Borrower(s) shall bear all loss or damage caused for any reason to the
claim any loss
occurred hypothecated properties etc., secured to the Bank (including loss by theft, burglary or
any accident whatsoever) and shall make good the deficiency by cash payment or
giving additional security approved by the bank.
Maintenance of
31. That the Borrower(s) will keep all the hypothecated properties in a good state of repair
Hypotheca and in perfect working order and condition and further that all such movable machinery,
plants and tools including all spares and parts thereof at present or for the time being
not in use will be properly coated with rust proof preservatives and oiled, packed or
encased and stored and housed in proper rain and weather proof premises.
32 That the agreement is made on the faith of the declaration of the Borrower(s) hereby
make(s) that:
Agreement in
(a) The securities given under hypothecation/pledged are and will at all time be the absolute
Good Faith. Bar property of the Borrower(s) at the sole disposal of the Borrower(s) and free from any
on further other trust, pledge, lien or claim or encumbrance (except for and subject to on the
charge
security hereby created)
- 40 -
(b) On the undertaking hereby given by the Borrower(s) that he/she/they will not create a
further mortgage or lien or any charge over the hypothecated/pledged securities during
the currency of the loans.
Borrower acting (c) That all the securities which are now hypothecated and which stand hypothecated
asAgent of the
from time to time to the Bank, when left in the possession of the Borrower(s) shall be
Bank
held by the Borrower(s) and deemed to be held by the Borrower(s) only as agent for
the Bank in trust for the Bank and
(d) The Borrower(s) be accountable to the Bank for all the securities hypothecated under
this agreement and placed in the possession and control of the Borrower(s) as agent
for the Bank.
33. If any event detailed in clause 14 shall happen or is believed to have happened which
in the opinion of the Bank impairs the security hereby created or credit of the Borrower(s)
or if the Bank shall be of the opinion that the security hereby is otherwise imperiled (as
to all or any of which matters the opinion of the Bank shall be conclusive) it shall be
lawful for the Bank, its agents and nominees with a view to obtain possession for and
on behalf of the Bank at all times without notice to the Borrower(s) but at the Borrowers
risk and expenses and if so required as an Attorney for and in the name of the
Borrower(s) to enter any place where the said assets may be and inspect, value, insure,
supervise disposal and/ or take particulars of all or any part of the same and check any
statements, accounts, reports, information and for the purpose of such entry to do all
acts, deeds and things deemed necessary by the Bank including breaking open of any
place where the hypothecated properties and the books of account or other documents
Banks right to relating to the hypothecated debts and assets may be lying or stored or kept and also
seize, sell and on any default of the Borrower(s) in payment of any money hereby secured or the
adjust
performance of any obligation of the Borrower(s) to the Bank or breach of any terms of
these Agreement or the occurrence of any circumstances in the opinion of the Bank
endangering this security to take charge of, seize, recover, receive take possession
of, inter alia, by putting its locks on godowns and other places where the hypothecated
properties or account books and other documents relating to the hypothecated book
debts are lying or kept and to appoint receiver or remove all or any part of the said
goods and assets and also all books of accounts, papers, documents and vouchers
and other records relating thereto, and also to give notices and demands to debtors
and third parties liable there for, sue for recovery receive and give receipts for the
same and/ or sell, realize, dispose of and deal with in any manner including by tender
or public auction or private contract and whether with or without the intervention of
Court all or any part of the said goods and assets and to enforce, realize, settle,
compromise, and deal in any manner with any rights and debts or claims relating
thereto and to complete any engagements and carrying on the business of the
Borrower(s) through Agents, Managers or otherwise without being bound to exercise
any of these powers or being liable for any loss in the exercise thereof and without
prejudice to the Banks rights and remedies of suit or otherwise and notwithstanding
there may be any pending suit or other proceedings, the Borrower(s) undertaking to
give immediate possession to the Bank on demand of the said goods and assets and
to give notices to debtors as and when required by the bank to transfer and deliver to
the Bank all relative bills, contracts, securities, papers and documents and agreeing to
accept the Banks accounts of sales receipts, and realizations as sufficient proof of
amounts realized and relative expenses and to pay any shortfall or deficiency thereby
shown provided that the Bank shall be entitled at all times to apply any other money or
- 41 -
monies in its hands standing to the credit of or belonging to the Borrower(s) in towards
payment of any amount for the time being payable to the Bank in respect of all
or some or any of the aforesaid credit facilities granted and / or agreed to be granted
by the Bank or otherwise the balance remaining payable to the Bank in
respect of the aforesaid credit facilities or otherwise notwithstanding that all or any of
the securities may not have been realized provided also that subject to these powers
of the Bank, the Borrower(s) may with the approval of the Bank deal with the said
goods and assets from time to time in due course of business provided the margin of
security required by the Bank is fully maintained and on the terms of payment or delivery
to the Bank of the proceeds thereof or documents there for immediately on receipt
thereof. Any monies payable by the Borrower(s) be treated as advance secured by this
agreement and be debited to the Borrower(s) in the said Loan / Cash credit/overdraft
account and be payable accordingly and such payment be treated as an advance
secured by this agreement.
34. The Borrower(s) shall pay all costs, charges and expenses incurred by the bank in the
negotiation, execution, carrying into effect of this agreement or in relation to the exercise
of any power of sale or other power or in relation to any act, deed, matter or thing
arising out of this agreement including non acceptance of any bills or dishonour on
presentation due to any discrepancies and agree to pay/debit borrowers account the
equivalent of the prevailing rate of selling/exchange and/or of any incidentals thereto
and shall also pay interest thereon at the rate aforesaid and in the manner aforesaid.
35. That the Bank shall not be in any way liable or responsible for any loss damage or
depreciation which the hypothecated properties may suffer or sustain on any account
Bank not liable whatsoever while the same are in the possession of the Bank during the continuance
for any loss
in seizure
of this agreement or thereafter and all such damage or depreciation shall be wholly on
and sale account to the Borrower(s) howsoever the same has been caused nor shall the Bank
be responsible for any shortage resulting from theft or pilferage or otherwise howsoever
notwithstanding that the hypothecated properties may be in the possession of or under
the control of the Bank.
36. (a) That it shall be lawful for the Bank at any time after taking possession of the
hypothecated properties to appoint receivers or remove and / or shall have power to
sell either by public auction or by private contract subject to such conditions as the
Bank shall think fit or otherwise dispose of or deal with any of the hypothecated/pledged
properties or any part or parts thereof and to enforce, realize, settle compromise and
Banks right to to deal with any rights or claims regarding any of the hypothecated/pledged securities
appoint Receiver without being bound to exercise or non exercise thereof and notwithstanding there
to sell
may be any pending suit or other proceedings against the Borrower(s). The Borrower(s)
undertake(s) to transfer and deliver to the Bank all relative contracts, securities and
documents. The Borrower(s) hereby agree(s) that the Bank shall have power without
consulting the Borrower(s) to settle any claim by any other person on the hypothecated
securities/properties or any part thereof and the Borrower(s) shall be bound by the
Banks decision and that any loss, damage or costs or expenses that may arise or
caused by such decision shall be at the risk and on account of the Borrower(s).
(b) That the Bank shall apply the net proceeds of sale of the hypothecated/pledged
properties in satisfaction so far as the same shall extend to the balance due to the
Approrpiration of
sale proceeds Bank on the said loan/cash credit/overdraft account or any other account of the
Borrower(s) or so much thereof as shall remain unpaid including interest at the rates
aforesaid until payment and including all costs as between attorney and client, charges
- 42 -
and expenses actually incurred by the Bank on any account whatsoever including
sales tax. If the net sum realized by such sale is insufficient to cover the balance due to
the Bank, the Borrower(s) shall be liable forthwith on production to the Borrower(s) of
an account to be prepared and signed as in clause 36(f) hereof (which shall be
conclusive) to pay the balance appearing due to the Bank. Without prejudice to such
obligation of the Borrower(s), the Bank shall be entitled (but shall not be bound) to
apply any other money or monies in the hands of the Bank standing to the credit of or
belonging to the Borrower(s) or any money which the Borrower(s) may then or at anytime
thereafter be entitled to draw from the Bank under any loan, cash credit, overdraft or
any other arrangement of goods the properties of the Borrower(s) stored in the Banks
premises or godown in or towards payment of the balance for the time being due to the
Bank, and in the event of such money or monies being insufficient for the discharge in
full of such balance, the Borrower(s) shall be liable forthwith on production to the
Borrower(s) of an account to be prepared and signed as provided in clause 36(f)
hereof (which shall be conclusive) to pay the balance appearing due to the Bank thereon
provided always that nothing herein contained shall be to negate or otherwise
prejudicially affect the right of the Bank which it is hereby expressly, agreed that the
Bank shall have to recover from the Borrower(s) the balance for the time being remaining
due from the Borrower(s) to the Bank up to the said loan/cash credit/overdraft account
or any other account notwithstanding that all or any hypothecated properties/securities
may not have been realized.
(c) That in the event of there being a surplus available of the net proceeds of such sale
after payment in full of the balance due to the Bank it shall be lawful for the Bank to
retain and apply the said surplus together with any other money or monies belonging
to the Borrower(s) for the time being in the hands of the Bank in or under whatever
accounts, as far as the same shall extend against in or towards payment for liquidation
of any or all other monies which shall or may become due from the Borrower(s) whether
solely or jointly with any other person or persons, firm or company to the Bank by way
of loans, discounted bills, letter of credit, guarantees, charges of any other debts or
liabilities including bills, notes, credits and other obligations current though not then
due or payable or other demands legal or equitable which the law of set off of mutual
credit would in case admit and whether the Borrower(s) shall become or be adjudicated
bankrupt or insolvent or be in liquidation or otherwise with interest thereon from the
date on which any and all advances in respect thereof shall have been made at the
rate or respective rates at which the same shall have been so advanced.
(d) That after the settlement of all claim of the Bank against the Borrower(s) any surplus
shall remain the Bank shall pay such surplus to the Borrower(s).
(e) That the Borrower(s) agree(s) that the securities held under the loans as aforesaid
shall also be extended and or held as security for any other loans or liability (ies) of the
Borrower(s) to the Bank.
(f) That the Borrower(s) agree(s) to accept without questions in and out of Court as
conclusive proof of the amount realized by any such sale as aforesaid and/or any sum
claimed to be due from the Borrower(s) to the Bank under this Agreement of the costs
and expenses incurred in connection therewith a statement of account made out from
the papers and / or books of the Bank and signed by the principal officer or any other
duly authorized officer of the Bank without production of any other voucher, document
or paper.
- 43 -
37. That the Bank shall not be under any liability whatsoever towards the Borrower(s) or
Banks right of
indemnity any other person for any loss or damage to the said goods and assets the subject of
this Agreement from or in whatever cause or manner arising whether such goods and
assets shall be in the possession of the Bank or not at the time of such loss or damage
or the happening of the cause thereof. The Borrower(s) shall at all times indemnify and
keep indemnified the Bank from and against all suits, proceedings, costs, charges,
claims and demands whatsoever that may at any time arise or be brought or made by
any person against the Bank in respect of any acts, matters and things lawfully done or
caused to be done by the Bank in connection with the said goods and assets or in
pursuance of the rights and powers of the Bank under this Agreement.
Payment of 38. That the Borrower(s) shall duly and regularly pay, perform and observe all rents, rates,
taxes
tax assessments and other outgoings in respects of the property in which any of the
hypothecated/ pledged properties/securities may from time to time be kept/stored /
situated and shall perform and observe the convenants and conditions which ought to
be paid or observed or performed by the Borrower(s). The bank may also without
being bound to do so pay all such charges and taxes at the cost of borrower(s) by debit
to the borrower(s) account(s)
Transfer of
39. That the Borrower(s) agree(s) and undertake(s) to transfer the registration of the vehicle
Registration in the name of the Bank whenever required to do so by them and especially when the
of vehicle Borrower(s) commit(s) a breach of any of the conditions of this Agreement and the
Bank is obliged to seize the vehicle and sell the same and adjust the sale proceeds as
detailed in clauses 33, 34, 35 and 36 hereinabove.
40. That the Borrower(s) further agree(s) to apply to the registering authority within whose
jurisdiction the vehicles stand registered for making a note of the charge created over
the vehicle(s) under this agreement in the Registration Certificate of the vehicle(s)
without prejudice to the Banks right to have the agreement so registered.
41. That this agreement is not to prejudice the right and remedies of the Bank against the
Borrower(s) irrespective and independent of this agreement in respect of any other
advances made or to be made by the Bank to the borrower(s).
Service of 42. That any notice in writing required to be served on the Borrower(s) shall be deemed to
notice
be sufficiently served if addressed to the Borrower(s) at the address given and left at
such address or forwarded by post. A notice sent by the post shall be deemed to be
given at the time when in the course of post it will be delivered at the address to which
it is sent.
Banks right to 43. That the Borrower(s) hereby agree(s) on demand by the Bank in that behalf to execute
claim additional such other documents in favor of the Bank as may be necessary or advisable to
documents
hypothecate/ pledge or further assure(s) the hypothecated/pledged properties in favor
of the Bank.
Change of 44. That in case the Borrower(s) shall be a firm or member of a firm any change whatsoever
Constitution
in the constitution of such firm during the continuance of this agreement shall not
impair or discharge the liability of the Borrower(s) or any one or more of them hereunder.
That in case the Borrower be a Company, the Borrower further agrees that it will not
induct on its board a person whose name appears in the list of Willful Defaulters and in
case such a person is found to be on its Board, it would take expeditious and effective
steps for removal of the person from its Board.
- 44 -
Acknowledge- 45. That if the Borrower(s) be more than one individual each one or any of them is/are
ment of
liability authorized and empowered by the other(s) of them to admit and acknowledge his/her/
their liability to the bank by any payment into the account(s) or by way of express
writing in any manner or otherwise and any such admission and acknowledgment of
the liability by one or more of them shall be construed to have been made on behalf of
each of them.
46. That in the event of the Bank applying for and, availing refinance from the Small
Industries Development Bank of India (SIDBI)/ National Bank for
Agricultural and Rural Development (NABARD)/ National Housing Bank (NHB) or any
other Bank or other financial / refinance institution in respect of the above advances,
the Borrower(s) hereby further agree(s) that the Bank shall be at liberty to furnish to
the SIDBI/NABARD/NHB OR any other Bank or other financial/ refinance institution any
such information or report, whether received by the Bank from the Borrower(s) or
otherwise in the Banks possession.
Further, the borrower/s agree/s that in case the Bank guarantee/LC or any other facility/
ies availed by them from the Bank devolves on the Bank, the Bank shall have a right to
debit such liability/ies arising thereon to the OCC account of the borrower/s irrespective
of drawing powers/limit. The borrower/s shall have no objection for such act of the
Bank . In case, the liability/ies in the OCC account exceeds the sanctioned limit, by
virtue of such debit, the borrower/s undertake/s to bring the OCC account within the
drawing power sanctioned by the Bank to him/them within .... days of such
debit, failing which Bank may have liberty to recall the account. The borrower/s
shall not dispute the liability arising in the OCC account due to such debiting of the
OCC account.
Banks right
47. That the Bank shall have the right of general lien of a Banker over all the goods, stocks
of General and other assets including hypothecated/pledged properties of the Borrower(s) which
lien came and hereafter will come into the possession of the Bank or held or to be held on
behalf of the Bank, for all monies owing to the Bank on any account whatsoever and
that nothing in this agreement contained shall be construed as excluding such of
General lien of the Bank. The Bank shall have discretion to refuse to give delivery of all
or any portion of such hypothecated/pledged properties of the Borrower(s) which came
and hereafter will come into the Banks possession under this Agreement or otherwise
unless and until all the monies owing to the Bank under this / these account/s or any
other accounts whatsoever are fully paid to the Bank.
48. The Borrower(s) further agree(s) that in addition to any general lien or similar right to
Consolidation which the Bank may be entitled by law the Bank may at any time and without notice to
of Accounts borrower(s) combine or consolidate all or any of the Borrower(s) account(s) and set off
set off
or transfer any sum or sums standing to the credit of any one or more of such accounts
in or towards satisfaction of any of borrower(s) liabilities to the Bank on any other
account or any other respect, whether such liabilities be actual or contingent, primary
or collateral and several or joint.
49. Nothing here in contained shall operate or be deemed to negate quality or otherwise
prejudicially affect the banks rights or remedies (which it is expressly agreed, the Bank
shall have) in respect of any present or future securities, guarantees, obligations or
decree for any indebtedness or liability of the borrower (s) to the Bank whether and the
said securities referred to herein are renewed, altered or varied to any extent or altered
in any manner.
- 45 -
SCHEDULE - I
Goods, Produce, Merchandise, Stock stored or to be stored from time to time under OPEN
CASH CREDIT
________________________________________________________________________
AS DETAILED IN ANNEXURE
________________________________________________________________________
SCHEDULE II
Goods. Produce Merchandise, Stocks pledged under KEY CASH CREDIT
________________________________________________________________________
________________________________________________________________________
SCHEDULE III
Goods Hypothecated / Pledged under Packing Credit
________________________________________________________________________
S. No Description of goods Quantity of storage Value Place
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
SCHEDULE IV
Old Vehicles as detailed below:-
Vehicle ________________________________________________________________________
Vehicle Type Brand Name Engine/Chassis No. Registration No. Value Rs.
________________________________________________________________________
________________________________________________________________________
New
Vehicle
UNDERTAKE TO SUBMIT FURTHER DETAILS ON TAKING DELIVERY OF THE VEHICLE
________________________________________________________________________
SCHEDULE V
(PLANT AND MACHINERY (EXISTING AND TO BE PURCHASED)
________________________________________________________________________
Type Particulars Where situated Value
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
- 46 -
SCHEDULE VI
BOOK DEBTS, RECIEVABLES, OTHER CLAIMS
________________________________________________________________________
________________________________________________________________________
SCHEDULE - VII
REPAYMENT SCHEDULE (FOR TERM LOAN)
Repayable in .................. monthly / quarterly / half-yearly installment (with or without

gestation period of ..month(s) / year(s) commencing from.
IN WITNESS WHEREOF the parties hereto have executed these presents the day and year first hereinabove
written.
SIGNATURE OF THE BORROWER(S)

(NAME AND ADDRESS)
COVENANTS OF THE CO-OBLIGANT
The Co-obligant(s) namely

a) .. ................. S/W/D/o .......
............................................................................................residing at........
..............................................................................................................................................................
b) .. ................. S/W/D/o.........
.. .................. residing at.....
.............................................................................................................................................................
c) .. .................S/W/D/o......
.. ..................residing at. ....
..............................................................................................................................................................
d) ....................... S/W/D/o........
.. ...................residing at .....
.. .....................................................................................
- 47 -
do hereby agree(s) and undertake(s) as follows:-
1) To stand as Co-obligant(s) to the Borrower/s here in above mentioned for the due repayment of all the
liabilities under the Agreement and to pay jointly and severally with the Borrower/s amounts as and
when due.
2) To authorise the Bank to disburse/pay the amount of the loans to ...................... (borrower(s))
in such manner as determined by the Bank at its discretion.
3) To authorise that in the matter of giving of acknowledgement of debt or payment of-amount given or
made by the Borrower/s shall be construed to have been made under his / her / their express authorisation
and such acknowledgements of debt given or payment made by the Borrower/s shall be binding on him
/ her / them for purposes of limitation.
4) The terms, conditions, and covenants contained herein shall be irrevocable and be enforceable against
him / her / them until duly cancelled by the Bank.
5) I/We irrevocably agree and give my/our consent for disclosure of all/any of the information and data
relating to us / them by the Bank including the Credit facility availed/to be availed to Credit Information
Bureau (India) Ltd and/or any other agency/Reserve Bank of India/and or any other person or agency
entitled to such information. I/We, the Co-obligant(s) further unconditionally and irrevocably agree that
in case he/she/they commit(s) default in the repayment of the credit facility granted, the Bank and /or
the Reserve Bank of India/CIBIL or any other agency authorized to collect such information will have an
unqualified right to disclose or publish my/our names/s and photographs as defaulters in such manner
and through such medium as the Bank or the Reserve Bank of India or CIBIL or any other agency
authorized in their absolute discretion may think fit. I/We am/are aware that the Bank may initiate steps
to identify/declare me/us as Willful Defaulter in terms of applicable Reserve Bank of India Guidelines in
case of my/our intentional default
Further I / We hereby confirm that I / We shall not raise any dispute in what so ever manner
regarding information / details furnished / to be furnished to CIBIL / other authorities and same is
binding on me / us.
Signature of Co-obligant(s)
Place :
Date :
- 48 -
(To be stamped as an Agreement. In case of Hypothecation, stamp duty for
Hypothecation also to be affixed as applicable in the State)
AB 2
Andhra Bank
(A Govt. of India Undertaking)
Composite Agreement (for Agriculture)
THIS AGREEMENT is executed this .................................. day of....................................

Two Thousand............................................... in favour of ANDHRA BANK, a Banking
Company; constituted under Banking Companies. (Acquisition and Transfer of Undertakings)
Act 1980, having its Head Office at Dr.Pattabhi Bhavan, Saifabad, Hyderabad and amongst
other places a branch at ........................................................... hereinafter called the Bank
which expression shall include its successors and assigns.
BY
1. I/We, .........................................................................................................................
son of / wife of / daughter of .....................................................................................
residing at ...............................................................................................................
2. I/We, .........................................................................................................................
residing at ...............................................................................................................
3. I/We, .........................................................................................................................
residing at ...............................................................................................................
4. I/We, .........................................................................................................................
residing at ...............................................................................................................
(OR)
M/s ....................................................................................................................................
Situated at...................................................................................................................
............................................................ represented By ......................................................
hereinafter referred to as "the Borrower(s) (which expression shall unless repugnant to the
context or meaning thereof be deemed to include his/her/their respective heirs, executors,
administrators, legal representatives, successors and permitted assigns) as requested in
his / her / their application, the Bank has agreed to grant / granted to the Borrowers from
time to time upon the terms and conditions stated hereinafter and as stipulated in the
application form and / or sanction letter which shall form part of this agreement.
- 49 -
(a) Cash Credit at any one time upto the limit of `........................................................
(Rupees ..................................................................................................................)
(b) Overdrafts at any one time upto the limit of `............................................................
(Rupees ................................................................................................................)
(c) Demand Loans at any one time upto the limit of `....................................................
(Rupees ................................................................................................................)
(d) Term Loans at any one time upto limit of `................................................................
(Rupees ................................................................................................................)
(e ) Kissan Credit Card at any one time upto the limit of `...............................................
(Rupees .................................................................................................................)
(f) .................. facility at any one time upto the limit of `........................................................
(Rupees ..................................................................................................................)
hereinafter collectively and individually referred to as the loans for the purpose of
facilitating finance to the borrower(s) :
NOW IN CONSIDERATION of the Bank having granted/agreed to grant the loan(s) for any
agriculture and/ or allied activities or any other purpose as stated in the application of the
borrower(s).
The Borrower(s) hereby agree(s), undertake(s) and declare(s) that:
Disbursement 1. The loan(s) will be disbursed/has/have been disbursed by the Bank to the borrowers
of Loan in installments or in one lump sum. The loan disbursed to one or any of the borrowers
shall be deemed to have been given to all the Borrowers jointly and they shall jointly
and severally be liable for repayment of the same to the Bank. The Borrower further
authorizes the Bank to pay the loan amount directly to the Authorised Dealer from
whom the Borrower is acquiring the vehicle/goods/assets.
Notwithstanding anything contained to the contrary the borrower(s) agree to abide,
avail and operate the Kisan Credit Card only to the extent of the drawing limit fixed /
arrived by the Bank for each year within the maximum permissible limit / Kisan Credit
Card limit during the continuance of the agreement.
End use
2. The amount under all or some or any of the said credit facilities will be used only for
of Funds the purpose or purposes mentioned in the Borrower(s) proposal and for which it has
been sanctioned and the Borrower(s) further agree(s) that notwithstanding anything
contained in this agreement, the Bank shall have the right to recall the entire amounts
under the said credit facilities together with interest and other charges or any part
thereof and / or withdraw the concessions if any, such as reduced rate of interest,
subsidy, in case the loan amounts is / has been used for any purpose other than for
which it has been sanctioned or if the Bank apprehends or has reason to believe that
the Borrower(s) has / have violated or is / are violating the conditions.
- 50 -
Rate of 3. The Borrower(s) hereby authorize(s) the Bank to charge and debit the respective
Interest
facility account with interest as mentioned below: -
(a) Cash Credit: At the applicable Base Rate..% plus spread of ......%
presently at.% p.a. with monthly / quarterly/half yearly/yearly rests.
(b) Over drafts: At the applicable Base Rate..% plus spread of ......%
presently at.% p.a. with monthly / quarterly/half yearly/yearly rests.
(c) Demand Loan: At the applicable Base Rate..% plus spread of
......%presently at.% p.a. with monthly / quarterly/half yearly/
yearly rests.
(d) Term Loan: At the applicable Base Rate..% plus spread of
yearly rests.
(e) Kissan Credit Cards: : At the applicable Base Rate..% plus spread of
yearly rests.
(f) .. : At the applicable Base Rate..% plus spread of
......% presently at.% p.a. with monthly / quarterly/half yearly/
yearly rests.
The borrower further agrees to pay interest at the rates mentioned above for all
facilities or such other rates and rests as may be fixed by the Bank and / or as per the
guidelines issued by RBI from time to time.
Such rate of interest shall be charged not only on the advance but also on the cost
of insurance premia and other expenses, charges, costs and fees.
(i) The Term loan and any loan payable by installments will be repayable by
installment as stipulated in the schedule herein attached. The Bank has an
option to reduce or increase the installment amount or extend the repayment
period within its discretion or upon change in rate of interest or for any
Repayment
operational reason. In case of default in payment of any one installment or any
of Loan with part thereof or any other irregularity on the part of the Borrower(s) or on the
default Clause happening of any of the events as mentioned in clause below the entire balance
then outstanding with interest, costs, commissions and charges shall if the
Bank so chooses at once become due and payable.
(ii) In the case of Loans availed under Kisan Credit Card the repayment period will
be one year from the date of first drawal of limit either under Kharif or Rabi.
Additional
(iii) In case of failure of the borrower(s) to repay the loan(s) on the respective due
Interest dates or to pay necessary margins or amounts and reduce the liability as and
when so desired to pay...............% additional interest on the amounts due to
the Bank as per rules in force from time to time.
Enhanced rate (iv) Provided that the Bank shall at any time and from time to time be entitled to
of interest change the rate of interest and such revised rate of interest shall always be
and waiver construed as agreed to be paid by the Borrower(s) and hereby secured.
of notice.
Borrower(s) shall be deemed to have notice of change in the rate of interest
whenever the changes in Base Rate is displayed/notified at/by the branch/
published in newspaper made through entry of interest charged in the pass
- 51 -
book/statement of accounts sent to the borrower(s). Notice regarding change
of rate of interest and charging of overdue interest is hereby waived by the
Borrower(s).
(v) Further, without prejudice to the Bank's other rights and remedies., the Bank
shall be entitled to charge at its own discretion enhanced rates of interest on
the outstanding in the loan account(s) or a portion thereof or for any default or
irregularity on the part of the borrower(s) which in the opinion of the Bank
warrants charging of such enhanced rates of interest for such period as the
Bank may deem fit.
(vi) The borrower shall pay/maintain a margin as may be prescribed by the Bank
from time to time for the facility(s) availed.
Hypothecation 4. That each and all of the Borrower(s) hereby declare and undertake that any or all of
of security
items both present and future detailed hereunder or otherwise as (i) to (iv) (hereinafter
referred to as "the security").viz :
(i) Crop whatsoever and wherever raised or to be raised including standing crops
on the land described in the schedule here or cut or stocked or stored or in
course of transit or delivery ;
(ii) herd/fish/poultry/flocks/silkworms/milch cattle/live stock/horticulture and cocoons
including those described in the schedule hereto wherever they may be;
(iii) tools / equipments / fixtures / boats / machines / tractor / harvester / motor
vehicles under Kisan Chakra / power tiller / tube well / electric motor / diesel
engine and/or other movables connected with and relating to farming/rearing
of cattle and/or flock/ fishing/sericulture/gober gas plant including those
described in the schedule hereto wherever they may be;
(iv) receivables and investments, movable assets and valuables inclusive of stocks,
vehicles and book-debts of the borrower(s).
Shall stand hypothecated to the Bank by way of first charge as security for the loans
and also for all indebtedness or liabilities of the Borrower(s) to the Bank together
with all interest, commissions, costs, charges and expenses payable to or incurred
by the Bank including those for the enforcement of any of the security(ies).
5. The borrower undertakes to keep all the securities free and shall be kept free from
any charge or encumbrance except those in favour of the Bank.
Insurance 6. The borrower undertakes to keep at all times such items-of securities as are of
of insurable nature, insured against loss or damage by fire and other risks as may be
Hypothecation
required/prescribed by the Bank with Bank's standard clause and shall deliver to the
Bank all such policies. In case of tractor/vehicle loan, the Borrower shall adequately
insure the hypothecated vehicle under a Comprehensive Motor Vehicle Policy, with
an Insurance Company approved by the Bank at all times during the currency of the
loan; Jointly in the name of the Bank and Borrowers against all types of loss/risk
including damage by accident, theft and/or damage by fire, Act of God and such
other risks as may be required by the Bank or be required by law to the full extent of
the value thereof and keep the policy always current by duly and punctually paying
the premium from time to time as may be required by the Bank and assign the benefits
in insurance policy thereof to the Bank. In case the Borrower(s) intend(s) to insure
the security covering more risks, he/she/they is/are at liberty to do so. It shall also be
- 52 -
lawful but not obligatory upon the Bank to insure, by debiting to the borrowers
account(s) in respect of the security as are of insurable nature. The proceeds of all
such insurance shall at the option of the Bank either be applied towards replacement
of the security or towards the satisfaction of the Bank's dues or both.
Consolidation 7. This agreement shall operate as a security to the Bank in addition to any other
of Account
security, if any, already held by the Bank for the repayment to the Bank on demand
of the balance due to the Bank by the borrower at any time or ultimately on the
closing of the said accounts up to the aggregate amount of ` ..............................
(Rupees ...............................................................................). The expression "the
balance due to the Bank in this and subsequent claims of this Agreement shall be
taken to include the principal moneys from time to time due on the said accounts
whether demanded or not and also all interests including additional interest, penal
interest/ commission charges; interest, tax, liquidated damages by whatsoever name
called, calculated from day to day in a manner and at the rate hereinafter mentioned
and the amount of all costs, charges and expenses of the Bank which the Bank may
have paid or incurred in any way in connection with the hypothecated goods and
other assets including the sale and disposal thereof and any other sum that is
hereunder declared as debitable to the accounts and interest thereon.
8. The borrower undertakes to maintain at all times a sufficient quantity and market
value of the security to provide the necessary margins, security required by the
Bank wherever applicable.
Subsidy / 9. Borrower(s) agree(s) that subsidy / margin money of `............................................
Margin
Money
to be provided by the Government or any other agency shall be kept in Term Deposit
Account or Reserve Fund Account or in any other account as may be notified by
subsidy / margin money disbursing authority and which would be adjusted towards
the liability as per the subsidy/margin money scheme.
10. The borrower undertakes and agrees that they shall pay all the charges and taxes
statutory or otherwise in respect of the security. The Bank may also without being
bound to do so, pay all such charges and taxes at the .cost of the borrowers by
debiting to the borrower(s) account(s).
Banks
11. A register of the goods, produce, merchandise, stock, book debts and other similar
Right to assets hypothecated as security as aforesaid shall be kept by the Borrower(s) at all
Inspection
times open to the inspection of the Bank, in which shall be entered particulars of all
goods, merchandise, produce, stock, book debts and similar assets hypothecated /
pledged to the Bank under this Agreement, that all the said goods and all documents
under this security shall always be kept distinguished and held as Bank's exclusive
property specifically Bank's right to appropriate this security to be dealt under the
directions of the Bank. They shall furnish to the Bank monthly, or at such intervals as
the Bank may require a schedule or copy of all the entries which shall have been
made in the said register / as well as statement of stock / book debts which stand
hypothecated to the Bank and as contained in the said register at the close of the
previous day and duly certified under the signature of the Borrower(s) and or his /
her / their / its authorized representative(s). The submission of statement of stock /
book debts / other assets from time to time held by the Borrower(s) will be as an
Agent for the Bank and in nature of rendering of account by Agent to Principal.
- 53 -
Banks 12. It shall be lawful for the Bank and its agents to enter and/or visit/inspect at any time
Right to
Access without notice and at the expense of the Borrower(s), the offices, godown, jaithas,
other premises of the Borrower(s) or places of storage whether owned or taken on
lease, for the storage of any of the hypothecated properties for the purpose of
inspection and / or checking the hypothecated properties and taking account and
inspection of books of accounts of the Borrower(s) (which the Bank is hereby
authorized to do) and it shall also be lawful for the Bank from time to time as it may
deem fit to have all or any of the hypothecated properties for the time being so
hypothecated and charged as aforesaid valued by the appraiser or the valuers to be
appointed or nominated by the Bank and all such expenses and fees and expenses
of such appraiser / valuers shall be treated as advances by this agreement and be
debited to the Borrower's all or some or any of the said credit facilities account(s) as
the case may be and be payable accordingly and shall until payments be treated as
advance secured by this agreement.
Registration 13. The Borrower shall take all steps to get the hypothecated goods/vehicles etc.
of goods / registered with the authorities immediately as may be required under the law duly
vehicle
registering Bank's hypothecation and shall submit the proof of such registration to
the Bank within 7 days from the date of registration without prejudice to the Banks
right to have the agreement so registered.
14. Happening of any or all of the following events would be treated as an event of
default for this agreement:
a) Any breach of the terms of this Agreement;
b) Anyone or more installment(s) are not paid on due date;
c) Interest has not been paid on due date;
d) If any distress or execution is levied or issued upon or against any part of the
property of the borrower and the same is not discharged or vacated within 14
days / or if a receiver is appointed for the borrower's business or if any
Event of
Default substantial part of the borrower's assets or business shall be deemed to be
seized or any action by any Government or any other authority is instituted to
suspend business or agricultural pursuit of the borrower(s).
e) If the borrower(s) stop(s) payment or ceases or decides to cease to carry on
his/their business, agricultural pursuit or dispose of the whole or substantial
part of his / her / their business of agricultural pursuit.
f) If any other indebtedness or obligation is not discharged when due, prior to or
on the specified maturity date thereof.
g) If any information furnished by the borrower to the Bank is found to be incorrect
or incomplete in any material particulars.
h) The occurrence of any event or circumstance which is prejudicial to or impairs
or imperil or depreciates or jeopardizes the security given to the Bank or the
occurrence of any event or circumstance which would or is likely to prejudicially
or adversely affect in any manner the capacity of the borrower to repay the loan.
i) Use of funds other than the purpose for which it was applied and sanctioned.
- 54 -
15. Whether any of the events or circumstances mentioned in Clause 14 (a) to (i)
occurred, happened the opinion/or decision of the Bank shall be conclusive and
binding on the borrower.
In the event of any default as above the Bank shall have the right:
a) to recall and recover the entire dues;
b) to suspend any withdrawal to be effected;
c) to take possession of the security so created forthwith and
d) to take any other action as it may deem fit for recovery of its dues and
enforcement of its securities.
16. In the event of default, the Bank will have a right to enter into the premises where the
Banks hypothecated security is situated and to take over possession of the securities
Right to Charged and sell them and recover its dues. The borrower hereby authorises the
Possession
Bank to act as their attorney/agents for all intents and purpose for effectual
implementation of the aforesaid action.
Banks right to 17. The Borrower(s) agree(s) that the limit(s) sanctioned or the terms of advance, like
Cancel Limits
rate of interest margin, duration, etc., may be revised, cancelled at Banks sole
discretion for any reason whatsoever, including all or any of the following reasons
(i.e) to suit the exigencies of Business or changes in the market conditions or to
implement the policies of the State / Union Government / Reserve Bank of India. On
such notice of revision / cancellation of all or any of the above sanctioned limits or
change in any of the terms, the Borrower(s) agree(s) to pay back the amount(s) due
to the Bank and / or abide by the new or revised terms.
Continuity of 18. This agreement is intended to and shall operate as a continuing security for all loans
Security indebtedness and liabilities of the borrowers to the Bank at all times during the
subsistence of the agreement notwithstanding.
a) The existence of a credit balance or "Nil" balance in the loans accounts at any
time or any partial payment or fluctuation of accounts or
b) Any loans or any part thereof have been repaid either after demand has been
made by the Bank or otherwise or has not been so repaid on demand.
19. The security aforesaid in this agreement shall remain in force until all the amounts
due to the Bank by the borrower either on overdraft or any of the accounts mentioned
in this agreement are fully paid or adjusted. The borrower(s) shall not without previous
permission in writing of the Bank sell or otherwise part with the hypothecated security
or any of them where with the permission of the Bank the hypothecated security or
any of them are sold or disposed off by the borrower, the value of such security, shall
be paid to the Bank or other security of equal value be substituted for the security so
sold or disposed off with the written approval of the Bank.
20. (i) that the borrower(s) in respect of crops more fully described in the schedule
shall not except in the normal course of business but subject to the powers of
the Bank herein contained cut, remove/ dispose of the security from the place(s)
wherever normally they may be kept/ preserved, stored without the prior written
permission of the Bank during the time any money herein mentioned shall
remain outstanding. Such security, if so, required by the Bank, shall be
immediately delivered to the Bank.
(ii) The hypothecated security and all sales and realisations, recoveries and
proceeds here of shall always be kept distinguishable as the Bank's exclusive
- 55 -
property, specifically appropriated to this security to be dealt with only under
the direction of the Bank.
Display of (iii) That the Borrower(s) shall cause and in default the Bank may itself cause
Banks name board or boards with the name of the Bank legibly and distinctly printed or
Board as written thereof to be placed and at all times maintained in a conspicuous portion
Hypothecation
upon the factory / godown / shop and / or other premises of the Borrower(s)
indicating that the goods / stocks / machineries / other movables are
hypothecated to the Bank. All the machineries / vehicles of the Borrower(s)
hypothecated and charged to the Bank under this agreements shall be treated
as movable property and not as an immovable property and shall bear the
name of the Bank indicating that the said machineries / vehicles are
hypothecated and charged to the Bank. The Borrower shall also exhibit
conspicuously in the main hall of the factory a list showing the items of
machineries hypothecated and charged to the Bank.
(iv) That in respect of live stock more fully described in the schedule the borrower
hereby expressly agrees and undertakes to hold the hypothecated security as
agent and Trustee of the Bank until sale, the goods and Insurance proceeds
and after sale, the sale proceeds there of shall be held in Trust by the borrower
on behalf of the Bank to be handed-over to the Bank on demand
21. That the Bank without being bound to do so or being liable for any loss on account
thereof and without prejudice to the rights and remedies of suit or otherwise shall be
entitled to:
Appropriation (i) Without prejudice to the foregoing on default of the borrower(s) in payment of
of Sale any money hereby secured or on the non-performance of an obligation on the
Proceed
part of the borrower(s) or on the occurrence of any circumstances in the opinion
of the Bank leading to an event of default then the Bank may sell by public
auction or tenders or private contract or otherwise deal with the security in its
absolute discretion and appropriate the sale proceeds firstly towards costs,
charges and expenses incurred towards preservation of security(ies)/ litigation,
Secondly towards interest charged (including uncharged interest), later towards
the principal amount due and lastly towards any other outstanding dues payable
by the borrower(s) to the Bank in respect of other facilities enjoyed by him and
surplus amounts, if any, will be paid to the borrower(s).
(ii) The Bank shall be entitled to settle or compromise, and deal with any manner
with any rights, debts, claims of Borrower(s) relating to the security.
Acknowled-
22. That if the borrower(s) be more than one individual each one or any of them is/are
gement of authorised and empowered by the other(s) of them to admit and acknowledge his/
Liability their liability to the Bank by any payment into the account(s) or by way of express
writing in any manner or otherwise and any such admission and acknowledgement of
the liability by one or more of them shall be construed to have been made on behalf
of each of them.
23. That the borrower(s) hereby give(s) his / her / their consent for the loans being
recovered as a public demand/money in terms of any legislation relating to recoveries
thereof where such consent is necessary under any legislation
Banks Right 24. The Bank shall have the right of general Lien and set off against any of the balances
to General in the account of the borrower(s)/co-obligant(s) in accordance with the provisions of
Lien
this agreement and Law. The borrower will not create any charge over any property
whether secured or unsecured except with the permission of the Bank. The borrower
- 56 -
shall not bank with any other Bank. The borrower shall not create any lien on the
properties/goods hypothecated to the Bank.
Banks Right 25. That the Borrower(s) further agree(s) that the Bank may at its sole discretion enter
to enter into into interse Bank participating arrangement with any Bank or Banks or Institutions of
inter bank
participation its choice without any reference to the Borrower(s). Borrower(s) agree(s) that such
participating arrangements, if any, arrived at, by the Bank with other Bank(s) /
Institutions(s), shall be a matter between the Bank and the other Bank(s) / Institution(s)
and the borrower(s) is / are unconcerned with the same. However, the Bank shall be
at liberty to furnish any information relating to the Borrower(s) to such participating
Bank(s)/Institution(s). The Borrower(s) further confirm(s) that notwithstanding such
participation arrangement between the Bank and other Bank(s) / Institution(s) the
Borrower(s) shall be liable to make payment of the entire liabilities to the Bank.
Service of 26. Any information/communication given/made through post/courier at the address last
Notice known to the Bank will be treated as sufficient service on the borrower(s )for all intent
and purposes
Banks Right 27. The Borrower(s) do hereby declare and state that all the information and data furnished
to disclose by them for availing the credit facility are true and correct. They unconditionally and
names of irrevocably agree and give his /her/their consent for disclosure of all/any of the
Defaulters
information and data relating to them by the Bank including the Credit facility availed/
to be availed to Credit Information Bureau (India) Ltd and/or any other agency/Reserve
Bank of India/and or any other person or agency entitled to such information. The
Borrower(s) further unconditionally and irrevocably agree that in case he/she/they
commit(s) default in repayment of the credit facility granted, the Bank and /or the
Reserve Bank of India/CIBIL or any other agency authorized to collect such information
will have an unqualified right to disclose or publish his/her/their name(s) and
photographs as defaulters in such manner and through such medium as the Bank or
the Reserve Bank of India or CIBIL or any other agency authorized in their absolute
discretion may think fit.
The borrower(s) do hereby declare that they are aware that the Bank may initiate
steps to identify/declare them as Willful Defaulter in terms of applicable Reserve
Bank of India Guidelines in case of his/their intentional defaulter.
Further I / We hereby confirm that I / We shall not raise any dispute in what so ever
manner regarding information / details furnished / to be furnished to CIBIL / other
authorities and same is binding on me / us.
The contents of the Agreement have been read over and translated into the vernacular
language known to the Borrower(s) and explained to Borrower(s) and he / she / they
having understood the contents thereof subscribes to these presents.
IN WITNESS WHEREOF the borrower(s) has/ have set his/ her/their hand(s) to these
presents on this the day first above written.
Place : ................................
Date : ................................ ..................................................................
Signatures/Thumb impression of borrower(s)
- 57 -
SCHEDULE
(Mention details of the primary security like crops in Survey No. , Village, herds / flock / fish catch tools /
equipments / stocks / machinery / vehicles / book debts etc.)
Place : ................................
Date : ................................ ..................................................................
Signatures/Thumb impression of borrower(s) with name
REPAYMENT SCHEDULE
Repayable in .............................................. monthly / quarterly / half yearly / yearly installments of

`............................... with or without gestation period of .......................... months/years commencing from
.......................................................................
Place : ................................
Date : ................................ .................................................................
Signatures/Thumb impression of borrower(s) with name
- 58 -
Andhra Bank
a) .. ................. S/W/D/o .......
............................................................................................residing at........
..............................................................................................................................................................
b) .. ................. S/W/D/o.........
.. .................. residing at.....
.............................................................................................................................................................
c) .. .................S/W/D/o......
.. ..................residing at. ....
..............................................................................................................................................................
d) ....................... S/W/D/o........
.. ...................residing at .....
.. .....................................................................................
when due.
2) To authorise the Bank to disburse/pay the amount of the loans to .............. (borrower(s)) in
such manner as determined by the Bank at its discretion.
relating to us / them by the Bank including the Credit facility availed/to be availed to Credit Information
in case he/she/they commit(s) default in the repayment of the credit facility granted, the Bank and /or
the Reserve Bank of India/CIBIL or any other agency authorized to collect such information will have an
binding on me / us.
Place :
Date : Signature of Co-obligant(s)
- 59 -
(To be stamped as an Agreement as applicable in the State)
AB 3
Andhra Bank
EDUCATION LOAN AGREEMENT
This agreement made this ............................................day of .................................... 20...........................

by
Mr. ......................................... son/daughter of ....................................................
aged about ............. years residing at ................ .....................................
.....................................................................................................................................................................
Or
(In case of minor)
.....................................................................................................................................................................
represented by his father / mother / guardian Sri / Smt ..............................................................................
S/o...........................................................R/o.....................................
....................................................................................................................................................................
hereinafter called 'the Borrower' (which expression shall unless excluded by or repugnant to the context be
deemed to include his heirs, executors, administrators and representatives)
And
.....................................................................................................................................................................
hereinafter called 'the Co-obligant' (which expression shall unless excluded by or repugnant to the context
be deemed to include his heirs, executors, administrators and representatives)
In favour of ANDHRA BANK, a Banking company, constituted under Banking Companies (Acquisition and
Transfer of Undertaking) Act 1980, having its Head Office at Dr. Pattabhi Bhavan, Saifabad, Hyderabad
and amongst other places a Branch at .......................................................... (hereinafter called "the Bank"
which expression shall include its successors and assigns from time to time).
WHERE AS the Borrower is desirous of undertaking and/or continuing studies at ....................................

for a period of .................................................... pursuing the course in of ........................................................
................................. University / Board but is unable to do so for paucity of fund.
- 60 -
AND WHEREAS being in need of financial assistance for his studies the Borrower and the Co-obligants
have approached the Bank to lend and advance to the Borrower a sum of `......................................
(Rupees ..........................................................................................................................................) which
the Bank has agreed to do upon the basis of and for the purposes set forth in the Borrower's application
dated ............................................. , a copy whereof is annexed hereto (hereinafter called 'the Borrower's
application') and upon the terms and conditions hereinafter mentioned;
NOW THIS AGREEMENT WITNESSETH :

1. The Borrower's application dated .................................... shall constitute the basis of this Agreement
and of the loan to be advanced by the Bank hereunder and the Borrower and the Co-obligant(s)
hereby confirm the correctness of each and every one of the statements and particulars therein
set forth.
2. The Bank shall advance the said sum of ` ................................ to the Borrower in such installments
and at such times as the Bank may from time to time determine and the amounts shall be paid to the
Educational Institute towards fee and charges and to the supply of the equipment and study materials
on the request of the borrower and the co-obligant which they hereby admit and acknowledge. The
receipt of payment will serve as sufficient and conclusive proof of the payment of the amount by the
Bank and shall be binding on the borrower and the Co-obligant(s).
3. The Bank may decline to advance the amount or discontinue further advances at any time at its
absolute discretion on the ground that the Borrower has found other means of assistance or that the
Borrower had discontinued his / her studies or has failed in any examinations or has failed to produce
satisfactory report of his/her studies and progress or for any other reason which the Bank at its
absolute discretion may consider good and sufficient. In the event of such discontinuance the payments
already made shall be deemed to be a completed loan under this Agreement and shall be repayable
accordingly.
4. The amount of the loan will be utilised by the Borrower only for the purposes of persuing his/her
studies, such as payment of admission fee, expenses on books, stationery and instruments,
equipments and computer required for the study / course undertaken, monthly/annually College /
University fees, examination fees and hostel expenses for boarding and lodging as specified in the
application.
5. At the end of each academic year/semester the Borrower will produce a certificate from the Head of
the Institution at which he/she is studying, testifying the results achieved by him/her during and at the
end of the year as well as about his/her conduct. If the said certificate is not produced or the certificate
furnished for any year is not considered satisfactory the Bank will (in its absolute discretion) have the
right to stop giving any further financial assistance to the borrower in terms of this Agreement
notwithstanding the fact that the total amount of the loan as agreed to in Paragraph 2 above has not
been disbursed to him/her. The Bank at its sole discretion will be entitled at its option to recall the loan
already given together with the interest accrued thereon, by a demand in writing.
6. The borrower/Co-obligant hereby specifically accepts and acknowledges that in case the borrower
fails to pursue his study further during entire course of study for the reasons whatsoever or leave his
study anytime during the course mentioned in his aforesaid Loan Application, the Bank has right to
recall the entire loan amount along with interest and total amount becomes due immediately. The
borrower/Co-obligant hereby undertakes to pay the entire amount immediately.
- 61 -
7. The Borrower will take out a life insurance policy in his/her name for an amount at least equal to the
total amount of the loan granted or agreed to be granted to him/her and will keep the said policy alive
at all times during his/her indebtedness to the Bank, by regular payment of premia thereon. He/she
will assign the said policy in favour of the Bank. In case the Borrower commits default in payment of
any premium due on his/her said life policy, the Bank shall be at liberty to (but not bound to do so) pay
the same and debit the amount so paid to his/her loan account. The amount so debited will form part
of the loan and will carry interest at the rate payable in respect of the loan as specified in para 8
below.
8. The Borrower/Co-obligant(s) shall pay interest on the advance or the balance thereof due from time
to time at the applicable AB Base Rate ..% plus spread of ..% presently ..%
p.a. with monthly / quarterly / half yearly / yearly rests or such other rate as may be fixed by the Bank
from time to time which shall be calculated on the daily balance(s) of the said account(s) and shall be
charged to the account(s) monthly / quarterly / half yearly / yearly and it shall then become part of the
principal.
9. In the event of borrower/Co-obligant(s) default in any of the covenants/payment of any one installment
or in regularizing or in clearing the amount as per the terms agreed upon the borrower shall pay
additional interest at higher of 2% per annum or such other rates as may be prescribed by the Bank
over and above the rate of interest charged on the loan/advance from the date of such default till
regularization or clearing the loan amount in full as the case may be.
10. The Borrower/Co-obligant undertakes to service the accrued monthly interest during the course of
study/gestation period or hereby specifically accepts and acknowledges that such interest shall be
calculated and debited monthly to the loan account of the Borrower and compounded with the principal
balance outstanding in the account at the end of every year.(Strike off whichever is not applicable).
11. Subject to what is provided in para 5 and 6 Supra the Borrower shall repay the loan together with
interest accrued thereon in ................. equated monthly installments as on the schedule of installment
to be decided and appended as schedule or framing of EMI to the agreement and shall form part of
this Agreement. The repayment shall start from the expiry of one year from the date he / she completes
the course of studies for which the loan was granted or six months from the date he / she gets
employment whichever is earlier. The borrower/co-obligant(s) hereby authorises/mandates the Bank
for debiting borrower/Co-obligant(s) account through ECS (debit) clearing for the EMIs as mentioned
in the schedule.
Provided that the entire loan or the balance then remaining outstanding (inclusive of extra interest)
can be treated forthwith due and payable by the Borrower to the Bank upon within the sole discretion
of the Bank on the happening of any of the following events;
a) Any one installment of the principal monies or interest remaining unpaid on the due date for
payment thereon.
b) The Borrower's committing any breach or default in the performance or observance of any of
the terms and conditions contained in these presents or any other terms or conditions relating
to the advance. On the question whether any of the above events has happened, the decision
of the Bank shall be conclusive and binding on the Borrower.
c) Any of the information submitted by the borrower/Co-obligant(s) is found to be false and incorrect.
d) The borrower discontinues his studies and/or fails to complete the course within the scheduled
time for the course.
- 62 -
12. The Borrower agrees that if there is enhancement of interest rate during the currency of the loan, he/
she shall pay the enhanced amount and the Bank shall have right to debit the enhanced interest to
his / her account for which he hereby requests / authorizes the Bank. The borrower agrees to pay the
said residual balance, if any, after payments of the regular agreed installments.
13. The Bank shall at any time and from time to time be entitled to change the rate of interest and such
revised rate of interest shall always be construed as agreed to be paid by the Borrower/Co-obligant(s)
and hereby secured. Borrower/Co-obligant(s) shall be deemed to have notice of change in the rate
of interest whenever the changes in Base Rate is displayed/notified at/by the branch/ published in
newspaper made through entry of interest charged in the pass book/statement of accounts sent to
the borrower(s) or enhancement of EMI. Notice regarding change of rate of interest, charging of
overdue interest or enhancement of EMI is hereby waived by the Borrower/Co-obligant(s).
14. The borrower/Co-obligant hereby specifically declares and undertakes that in any of the event of
default as mentioned in the agreement, the bank has right to enforce the security mortgaged/held by
the Bank, if available, for recovery of the dues of the Bank in addition to the other recourse available
with the Bank.
15. Further, the borrower is aware of the fact that as per rule of the Insurance Company there would be
no coverage of liability insurance in case of death of borrower / co-obligant who has been admitted
by the Insurance Company as member of the extended period i.e. beyond the original due date as
mentioned above and agree for the same.
16. The borrower / co-obligant shall inform the date of completion of course / study and date of getting
the employment to the Bank within one month from the date of completion of course and from the
date of getting the employment.
17. The Borrower will, during the period of his / her indebtedness to the Bank, keep the Bank informed of
the change in his / her address, vocation, income, email i.d., telephone contact details from time to
time. In case of failure to do so by the borrower, the Bank has right to inform the Passport Authority of
India and concerned Indian Consulate/Embassy for necessary action against the borrower.
18. The borrower duly agrees and declares that until payment is made to the Bank of all the amounts,
whether past present or future, actual or contingent, which may be payable by the borrower or for
which the borrower may be or become liable hereunder or otherwise and whether as principal or
surety, the Borrower agrees that the Bank shall have a lien and / or right of set off on all securities
and / or monies whatsoever held at any time by the Bank on account of or to the credit of the
Borrower in or for any account or manner or purpose howsoever. The Bank shall be at liberty to
discharge the said obligations or liabilities of the borrower out of the said securities and / or monies,
and in case of term deposits, whether the same have matured for payment or not, and may appropriate
or realise them in the manner thought fit by it and without notice to the Borrower (and whether before
or after filing suit or taking any legal proceedings). The Bank may set off an amount estimated by it in
good faith to be the amount of that obligation.
19. The borrower, on attaining the age of majority, shall within one month, submit a separate undertaking
thereby ratifying the action of parents / guardian in obtaining the loan from the Bank for his / her
education purpose and he / she is agreeable to repay the said loan as per the terms and conditions
stipulated in the agreement executed by the parents / guardian. In case of default on the part of the
borrower, it shall be deemed that the loan was availed for the benefit of the borrower to meet his
necessities.
- 63 -
20. The liability of the Co-obligant(s) under this Agreement shall be co-extensive with that of the Borrower
and it shall continue to be in full force and will remain operative and in full effect till all the dues of the
Bank from the Borrower under these presents are fully paid and satisfied.
21. Any information/communication given/made through post/courier at the address last known to the
Bank will be treated as sufficient service on the borrower(s) and co-obligant(s) for all intent and
purposes
22. Any money due and payable to the Bank and received by the Bank shall be applied in such order as
the Bank in its absolute discretion may from time to time conclusively determine (save that the Bank
may credit the same to a suspense account for so long and in such manner as the bank may from
time to time determine).
Without prejudice to the above, the monies received shall be appropriated in the following manner.
firstly towards costs, charges and expenses incurred towards litigation, Secondly towards interest
charged (including uncharged interest), later towards the principal amount due and lastly towards
any other outstanding dues payable by the borrower(s) to the Bank in respect of other facilities
enjoyed by him and surplus amounts, if any, will be paid to the borrower(s)
23. The Borrower/Co-obligant(s) do hereby declare and state that all the information and data furnished
by them for availing the credit facility are true and correct. They unconditionally and irrevocably
agree and give his /her/their consent for disclosure of all/any of the information and data relating to
them by the Bank including the Credit facility availed/to be availed to Credit Information Bureau
(India) Ltd and/or any other agency/Reserve Bank of India/and or any other person or agency entitled
to such information. The Borrower/Co-obligant(s) further unconditionally and irrevocably agree that
in case he/she/they commit(s) default in repayment of the credit facility granted, the Bank and /or the
Reserve Bank of India/CIBIL or any other agency authorized to collect such information will have an
unqualified right to disclose or publish his/her/their name(s) and photographs as defaulters in such
manner and through such medium as the Bank or the Reserve Bank of India or CIBIL or any other
agency authorized in their absolute discretion may think fit. The Borrower/Co-obligant(s) is/are aware
that the Bank may initiate steps to identify/declare him/it/them as Willful Defaulter in terms of applicable
Reserve Bank of India Guidelines in case of my/our intentional default.
Further I / We hereby confirm that I / We shall not raise any dispute in what so ever manner regarding
information / details furnished / to be furnished to CIBIL / other authorities and same is binding on me / us.
IN WITNESS WHEREOF THE BORROWER and the Co-obligant(s) have hereunder set their
respective hands on the date month and year first mentioned above.
(Borrower)
Name of the Borrower
(Co-obligant(s))
Name of the Co-obligant(s)
- 64 -
(To be stamped as an Agreement as applicable in the State)
AB 4
Andhra Bank
AGREEMENT FOR HOUSING LOAN

THIS AGREEMENT made at ..............................on this .................................. day of .................... 20 ........
in favour of ANDHRA BANK, a Banking Company, constituted under the Banking Companies
(Acquisition & Transfer of Undertakings) Act, 1980, having its Head Office at 5-9-11, Dr. Pattabhi Bhawan,
Secretariat Road, Saifabad, Hyderabad -500004 and among others, a Branch at ....................................
hereinafter called the BANK which expression shall, wherever the context so admits or requires, mean and
include its attorney, successors and assigns
by
Shri / Smt. ......................................................................................................................................................
son/daughter of .................................................................................................. aged ..................... years
residing at .....................................................................................................................................................
.........................................................................................................................................................................
AND
Shri / Smt. .....................................................................................................................................................
son/daughter of .................................................................................................. aged ...................... years
residing at .....................................................................................................................................................
.......................................................................................................................................................................
hereinafter referred to as the "Borrower/s", which expression shall wherever the context so admits mean and
include his/her/their heirs, executors, administrators, assigns and legal representatives.
WHEREAS the Borrower/s is/are desirous of availing a housing loan upto a maximum amount of
`.............................. ( Rupees....................................................................... only)
as per his/her/their application for the purposes of Construction of a residential house/Acquiring a new
housing unit/flat/Carrying out repairs as per details separately given/to be given to the house owned by the
Borrower/s situated at .................................................................................................................................
.............................................................................................................................................................................
................................................................................................................................................. (more specifically
detailed in the Schedule hereinafter mentioned below)
Now this deed witnesseth:
1. The Bank is agreeable to grant a housing loan to the Borrower/s upto a maximum amount of
`........................ (Rupees ..........................................................................................................................)
for the purpose of acquisition of dwelling unit i.e. house/flat or construction of house/carrying out of
repairs of house belonging to the Borrower for the aforesaid consideration, the Borrower/s agree/s
and undertakes that the principal sum of the loan, interest, any charge due under this agreement shall
be secured by mortgage/ charge of the property described in the schedule and Bank shall have the
right to decide, the type of mortgage/security documents it may desire and the borrower/s shall be
- 65 -
bound to execute the mortgage/ security documents accordingly and agree/s to create such security
as required by the Bank.
2. The borrower has agreed to pay a processing fee to the Bank equal to % of the loan amount
subject to maximum of `.............................. (Rupees ..........................................................................
............................................................................................................................. only).
3. The Borrower/s undertake/s to deposit a sum of `........................ (Rupees........................
...................................................................................................................... only) as margin for the
loan in the manner required by the Bank before availing loan.
4. The borrower(s) shall furnish the full details in respect of schedule property along with complete chain
of title documents, sanctioned plan, requisite permission from Competent Authority, if applicable, for
acquisition of house/flat or construction of house/carrying out of repairs of house, completion of
construction certificate.
5. The Bank may as per the sanction letter disburse the loan amount in stages for construction of the
dwelling unit i.e. house/flat on submission of completion of construction certificate or in case of self
construction, commensurate to the progress of construction on production of bills/vouchers for materials/
work completed and pay directly to the borrower or the contractor upon the contractors bills being
submitted by the borrower duly verified and countersigned by him and any such payment duly made
shall be binding on the borrower/s or make a lump sum disbursement, to the persons entitled in the
presence of the Registrar in case of outright purchase of house.
6. The Borrower shall furnish to the Bank in respect of the schedule property full details of the repairs/
construction together with details of the estimated cost thereof in the form required by the Bank.
7. The Borrower agrees to repay the entire loan amount to the Bank in ................... (give number) equal
monthly installments of `........................... each. The first of such installments shall be paid on or
before .................................. and thereafter the subsequent installments on or before the same day
of each month. The Bank has option to reduce or increase the EMI or extend the repayment period
consequent upon changes in rate of interest or for any other operational reason.
8. The Borrower shall pay interest on the loan or the balance thereof due from time to time at ..................%
above AB Base rate plus spread of ..% with monthly/quarterly/half yearly/annually rests present
effective rate of interest being ______ % and such interest shall be calculated and charged on the
Balance in the account and shall be payable every month. If interest is not paid, the same shall
become compounded with the principal balance outstanding in the account, on such balance and on
such successive balances. The actual lending rate is subject to review and variation from time to time
as per RBI guidelines and due to any changes in the financials of the borrower. Base Rate shall be
subject to change from time to time. The Base Rate notified by the Bank on its Website and notice
board of the Bank/branch shall be conclusive notice to the borrower in respect of change of Base Rate.
9. The borrower/s also agree/s that in case he/she/they prepay/s the loan/swap before the period
stipulated at the time of sanction, he/she/they shall be liable to pay prepayment penalty at the rate of
................. % per annum on the amount so prepaid by him/her/them.
10. The Borrower/s hereby specifically agree/s that he/she/they waive/s notice of variation of interest
including enhancement from time to time as per the directions of the Head Office of the Bank. He/she/
they further agree/s that such variation in the rate of interest notified in the notice board in the bank
premises shall be sufficient notice to him/her/them and that he/she/they agree/s to pay interest at the
rate notified in the notice Board of the Bank from time to time until all dues are cleared in full.
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11. In the event of borrowers default in any of the covenants/payment of any one installment or in regularizing
or in clearing the amount as per the terms agreed upon the borrower shall pay additional interest at
higher of 2% per annum or such other rates as may be prescribed by the Bank over and above the
rate of interest charged on the loan/advance from the date of such default till regularization or clearing
the loan amount in full as the case may be
12. The Borrower hereby authorizes the Bank to debit his/her/their SB/Current Account No............................
at any time with the amount of installment, interest, charges, costs, insurance premium and expenses
incurred, as per the Rules of the Bank without any further reference to him/them and undertake(s) to
provide sufficient balance in his/their account/s.
13. The Borrower/s shall also pay usual Bank charges, commitment charges, incidentals, commission
etc., as may be debited to the borrower/s account from time to time in accordance with the usages and
practices of the Bank.
14. The Borrower/s undertake/s that the Bank shall have the right to appropriate the payments received
from the Borrower/s / Co-obligant / Guarantor / Mortgagor at its sole discretion.
the Bank in its absolute discretion may from time to time determine (save that the Bank may credit the
same to a suspense account for so long and in such manner as the Bank may from time to time
determine). Without prejudice to the above, the monies received shall be appropriated firstly, towards
costs, charges, and expenses incurred towards preservation of security/ litigation, secondly towards
interest charged (including uncharged interest), later towards the principal amount due and lastly
towards any other outstanding dues payable by the borrower to the bank in respect of other loan/
facilities enjoyed by him or for which he/she/they is/are liable and surplus amounts remaining if any will
be paid to the borrower.
16. On demand, the Borrower agrees to deliver to the Bank Post-dated Cheques for the monthly installments
and/or give instructions for Electronic Fund Transfer from his account towards monthly installments
and the Borrower warrants that the cheques will be honoured, and EFT instructions shall be carried
out on first presentation. Any non-presentation of a cheque due to any reason will not affect the
liability of the Borrower to pay the monthly installments or any other sum. The Borrower agrees to
forthwith replace the cheques/issue fresh cheques, if required by the Bank. The Borrowers shall not
be entitled to call upon the Bank to refrain from presenting any cheque for payment and if the Borrower
does so, the Bank shall nevertheless be entitled to present the cheque for payment and in the event
of dishonour the provisions under Chapter XVII of the NI Act, 1881, shall apply.
17. The Borrower/s undertake/s and declare that he/she/they have clear and marketable title to the
property(ies) offered as security(ies) in the subject loan and is/are free from encumbrances and he/
she/they undertake to indemnify the Bank against the loss, if any, sustained/to be sustained by the
Bank due to defective title/encumbrance in the property(ies).
18. The Borrower/s undertake/s and declare that there is no statutory due pending against him/co-applicant/
property. The Borrower/s further undertake/s and declare that there is no proceeding pending against
him/co-applicant under Section 281 of the Income Tax Act, 1961.
19. Till the entire housing loan is repaid, the Borrower/s agree/s / undertake/s not to alienate the mortgaged/
charged property in any manner without the written consent of the Bank. Further, the Borrower/s
covenant/s to keep the mortgaged property free from all taxes, encumbrances, lien or charges of
whatsoever kind and keep the house in good condition by making necessary repairs during the
pendency of the loan.
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20. The Borrower/s undertake that if the value of the above said property/ies depreciates to such an
extent and in the opinion of the Bank further security/ies is/are to be furnished, then he/she/they shall
furnish such additional/adequate/ alternate security/ies, if and when called upon to do so.
21. The Borrower/s have disclosed all the material facts relating to the property like the public schemes
affecting the Borrower's right/title in the property/ies mortgaged to the Bank, any disputes and payments
due in relation to the said property/ies etc., and nothing has been concealed from facts.
22. The Bank will be entitled to recall the advances and/or enforce the security if the borrower/s default/s
in paying any installments for three months from the due date or fail/s to pay any interest for three
months after due date or in the event of borrower/s committing any breach in the performance or
observance of these presents/any other document.
23. The Borrower/s agree that in the event of willful default on his/her/their part, the Bank shall have the
right to publish his/her/their name/s and photograph in any of the local news paper/s, magazine/s etc.
24. The Bank in its discretion has the right to recall the loan and demand the payments of all moneys
under this agreement and enforce its security upon the happening of any one or more of the following
events:
1. The borrower/s is/are declared as bankrupt or insolvent by a Court.
2. Any execution, attachment or restraint being enforced or levied on the property secured or on
borrower personally.
3. A receiver being appointed in respect of the secured property by any Court.
4. The occurrence of any circumstances which impairs, depreciates the value of security given by
borrower.
5. The occurrence of any event or circumstances which in the opinion of the bank would or is likely
to prejudicially or adversely affect in any manner the borrower/s capacity to repay the loan.
6. Failure or neglect to utilise the credit facility or any part thereof for the purpose for which it was
sanctioned by the Bank.
7. On the question whether any of the above events has happened, the decision of the Bank shall
be conclusive and binding on the Borrower.
25. The Bank is entitled to inspect the construction of the house by its officers or insist the borrower/s to
produce photos indicating the stage of construction of house from time to time to ensure the compliance
of sanction terms. In the event of unsatisfactory inspection report, the Bank may stop further advances/
installments after giving written notice or direct the borrower to take remedial measures.
26. The borrower/s shall adequately insure the schedule property for the full market value against risk of
fire, war, riots, civil commotion, strike, accident, risk and also such other purposes as may be prescribed
by the law for the time being in force and as required by the Bank and keep the policy always current
by duly and punctually paying the premium from time to time and to assign the benefits in insurance
policy thereof to the Bank. The Bank shall be entitled for all the benefits of all such policies.
27. The Borrower/s hereby agree/s and undertake/s to do everything to transfer and effectively vest in
the Bank the benefits of all such policies. The Borrower/s further agree/s to indemnify the Bank against
loss by reason of damage or destruction or loss to the schedule property from any cause whatsoever
for reason of claim by third party in respect of the same. The Bank is at liberty and is not bound to
effect such insurance at the risk, responsibility and expenses of the Borrower/s with any Insurance
Company only to the extent of the value of schedule property as estimated by the Bank and that in the
event of insuring the schedule property, the Bank shall not be considered or deemed to be responsible
or liable for non-admission or rejection of the claim wholly or in part whether the claim is made by the
Bank or by the Borrower/s. It is expressly undertaken by the Borrower/s that he/she/they shall himself/
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herself/themselves of his/her/their own accord take all steps like initiation of filing claims/furnishing
necessary information to the Bank/insurance Company without being informed of details of loss/damage
for any reason whatsoever. In the event of rejection of claim either wholly or in part on account of loss/
damage to the security, the Borrower/s shall be liable to repay to the Bank the entire outstanding
liability without requiring the Bank to proceed in the first instance against the Insurance Company. In
the event of non-settlement of claim, the Bank may at its absolute discretion take action against
Insurance Company without being under any obligation to do so or require the Borrower himself to
take action, in which case the Borrower shall not be entitled to question the decision of the Bank. If the
Bank does not lodge any claim under the policy within the time limit prescribed under such policy, the
Bank shall not be liable to the Borrower for not filing any claim or suit for recovery of the insured
amount against the Insurance Company or any other person.
28. If there is delay in completing the construction/repairs on account of unforeseen reasons, the Bank
may, at the request of the Borrower, at its discretion grant time for completing the work and commencing
repayment of the loan.
29. The Borrower/s undertake/s to pay the property tax and other dues relating to the schedule property
as and when due and produce the proof thereof to the Bank.
30. The borrower/s agree/s that the Bank has the right to avail refinance from any agency in respect of
the loan availed herein by the borrower/s or to securitize such loan. The borrower/s also agree/s that
the Bank can assign all/any of its rights/privileges under/by this agreement to any other person/
agency/trust and the borrower/s shall be bound by such assignment and assignee has the right to
enforce all rights which the Bank so assigned. Further, the borrower/s hereby consents for the waiver
of notice by the Bank to the borrower/s of any such action of refinancing/securitisation/ assignment.
31. The Borrower covenant/s that he shall complete the construction of the house as indicated by him in
his loan application or otherwise and obtain and produce to Bank, Completion Certificate issued by
the Civil Authority concerned.
32. No delay in exercising or omission to exercise any right, power or remedy accruing to Bank upon any
default under this agreement, mortgage deed or any other agreement or document shall impair any
such default nor shall the action/inaction of Bank in respect of any default or any acquiescence by it in
any default, affect or impair any right, power or remedy of Bank in respect of any other default.
33. It is expressly agreed and declared by the Borrower/s that in the event of Borrower making request to
transfer the limit/outstanding liability to any other branch of the Bank for being availed and operated
on the ground of convenience or for any other reason acceptable by the Bank and Bank agrees to
transfer the limits and/or grants further limit as per records and documents separately to be obtained
for such further limit by the concerned branch/es, the security created and to be created in favour of
the branch in which accounts are maintained shall be available to the branch/es of the Bank to which
such limit stand transferred for the repayment of the amount now due and that may be due hereafter
by the Borrower or by the Borrower jointly with others in any other accounts and the documents/
records already created shall continue to be enforceable against the Borrower in all respects and for
all purposes and intents the said documents/records shall be taken as if they are executed by the
Borrower in favour of the branch/es to which such limits stand transferred
34. It is expressly agreed and declared by the Borrower(s) that in the event of his/her/their ceasing to be
in business/service of his/her/their employer whether by retirement, resignation, death or by operation
of law or for any other reason or cause whatsoever and howsoever the Bank shall be entitled at its
discretion, to write to his/her/their employer to appropriate and set off i) any amount which may be
payable by his/her/their employer to him/her/them whether by way of salary, allowance, bonus, other
remuneration or any payment (whether ex-gratia or otherwise) whatsoever and ii) any amount that
may be standing to the credit of any account which he/she/they may have with his/her/their employers
- 69 -
or with the Bank, either singly or jointly towards repayment of any balance that may be then remaining
due by him/her/them in his/her/their said loan account together with interest thereon at the applicable
rates up to the date of such payment, any such appropriation made by the Bank or his/her/their
employers shall be conclusive and binding on him/her/them and his/her/their estate both in and out of
court. In any event his/her/their liability to make payment of the entire dues immediately shall remain
valid till the entire amount with applicable interest as up to the date of payment has been realised by
the Bank whether by way of recovery from his/her/their employer or otherwise.
35. The Borrower(s) do hereby declare and state that all the information and data furnished by them for
availing the credit facility are true and correct. They unconditionally and irrevocably agree and give
his /her/their consent for disclosure of all/any of the information and data relating to them by the Bank
including the Credit facility availed/to be availed to Credit Information Bureau (India) Ltd and/or any
other agency/Reserve Bank of India/and or any other person or agency entitled to such information.
The Borrower(s) further unconditionally and irrevocably agree that in case he/she/they commit(s)
default in repayment of the credit facility granted, the Bank and /or the Reserve Bank of India/CIBIL or
any other agency authorized to collect such information will have an unqualified right to disclose or
publish his/her/their name(s) and photographs as defaulters in such manner and through such medium
as the Bank or the Reserve Bank of India or CIBIL or any other agency authorized in their absolute
discretion may think fit. The Borrower(s) is/are aware that the Bank may initiate steps to identify/
declare him/it/them as Willful Defaulter in terms of applicable Reserve Bank of India Guidelines in case
of my/our intentional default.
Further I / We hereby confirm that I / We shall not raise any dispute in whatsoever manner
binding on me / us.
In witness whereof, the parties hereto have signed these presents on the day, month and year above
mentioned.
SCHEDULE OF PROPERTIES
Name of owner of property :
Address of owner of property :
Details of property :
Area (in sq.yds / sq. mts) :
Boundaries : (1) East :
(2) West :
(3) North :
(4) South :
1) Borrower/s
2) Borrower/s
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(To be stamped as Hypothecation Agreement)
AB 5
Andhra Bank
AGREEMENT FOR VEHICLE LOAN
THIS AGREEMENT made this ....................................... day of..20 at ......

in favour of ANDHRA BANK, a Banking Company, constituted under the Banking Companies (Acquisition &
Transfer of Undertakings) Act 1980, having its Head Office at 5-9-11, Dr. Pattabhi Bhawan, Secretariat
Road, Saifabad, Hyderabad -500004 and among others, a Branch at............................... hereinafter called
the BANK, which expression shall, wherever the context so admits or requires, mean and include its
attorney, successors and assigns.
By
M/s /Shri/Smt/Ms.....................................................................................,
Son of/daughter of/wife of ................................................ aged . years,
residing at .......
herein after called the Borrower (which expression shall ,wherever the contest so requires or admits, be
deemed to include his heirs, executors ,administrators, successors in title, assigns, attorneys, partners
from time to time, successors and assigns)
AND
Shri/Smt/Ms............................................................................................
Son of/daughter of/wife of .................................................... aged . years,
residing at ...................................
herein after called the Co-Obligant, (which expression shall ,wherever the contest so requires or admits,
be deemed to include his heirs, executors ,administrators, successors in title, assigns, attorneys, partners
from time to time, successors and assigns)
(delete if not applicable)
WHEREAS the Borrower, is desirous of purchasing a 2 wheeler / 4 wheeler Vehicle of .

make detailed in the Schedule hereto and have applied for a loan of `...........................................,
(Rupees ..........................................................................................................In words)
under Andhra Bank Vehicle loan scheme agreeing to secure the repayment of the loan advanced by the
Bank; with interest, Bank charges, costs, commission etc., by way of hypothecation of the motor vehicle/s
with all accessories, tools etc.
AND WHEREAS THE Borrower(s) have agreed that the loan/overdraft shall, inter-alia, be governed by the
terms and conditions hereof.
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NOW THIS DEED WITNESSETH AS FOLLOWS:
1. On the request of the Borrower, Bank has agreed to grant a Vehicle loan of ` .................................
(Rupees........................................................................................................................................) to
the Borrower for the purpose of purchase/acquisition of the Vehicle(s), detailed in the Schedule
hereunder. The Borrower, agrees and undertakes to use the loan exclusively for the purpose set
forth in these presents on the terms and conditions hereof, against the invoice submitted by him/
them to the Bank.
2. The Borrower hereby authorizes the Bank to pay the loan amount directly to the Authorised Dealer
from whom the Borrower is acquiring the vehicle.
3. In consideration of the Bank sanctioning the said term loan facility to the Borrower, the Borrower
hereby hypothecates in favour of the Bank the motor vehicle, and all tools and accessories to be
purchased hereafter and/or purchased, as described in the application and more fully described in
the Schedule hereto (further particulars whereof may/will be furnished later after delivery of the
vehicle, which shall form part of these presents) hereinafter referred to as Hypothecated Vehicle.
4. The Borrower agrees to repay the entire loan amount to the Bank in ................... (give number)
equal monthly installments of `. ..................... each. The first of such installments shall be paid on or
before ............................ and thereafter the subsequent installments on or before the same day of
each month. The Bank has option to reduce or increase the EMI or extend the repayment period
consequent upon changes in rate of interest or for any other operational reason.
5. The Borrower shall pay interest at ..................% above AB Base rate with monthly rests, present
effective rate of interest being ______ % and such interest shall be calculated and charged on the
balance in the account and shall be payable every month. If interest is not paid, the same shall
become compounded with the principal balance outstanding in the account, on such balance and on
such successive balances. The actual lending rate is subject to review and variation from time to time
as per RBI guidelines and due to any changes in the financials of the Borrower. Base Rate shall be
subject to change from time to time. The Base Rate notified by the Bank on its Website and notice
board of the Bank / Branch shall be conclusive notice to the Borrower in respect of change of Base
Rate.
6. The Borrower hereby specifically agrees that he/she/they waive/s notice(s) of variation of interest
they further agree(s) that such variation in the rate of interest notified in the notice board in the Bank
premises shall be sufficient notice to him/her/them and that he/she/they agree(s) to pay interest at
the rate notified in the Notice Board of the Bank from time to time until all dues are cleared in full.
Notice regarding change of rate of interest and charging of overdue interest is hereby waived by the
Borrower.
7. The borrower has agreed to pay a processing fee to the Bank equal to% of the loan amount
and Administrative Charges of `................. (Rupees .............
................................................................................................................................................ only).
8. The Borrower shall deposit a sum of `....................................... (Rupees ....
............................... ................................................................................................................. only).
as margin for the loan in the manner required by the Bank before availing loan.
9. The borrower also agrees that in case he/she/they prepay(s) the loan/swap before the period stipulated
at the time of sanction, he/she/they shall be liable to pay prepayment charges at the rate of
.............................% per annum on the amount so prepaid by him/her/them.
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10. In the event of Borrowers default in any of the covenants/payment of any one installment or in
regularizing or in clearing the amount as per the terms agreed upon the Borrower shall be liable to
pay additional interest at a higher rate/commitment charges of 2% per annum or such other rates as
may be prescribed by the Bank above the rate of interest charged on the loan/advance from the date
of such default till regularization or clearing the loan amount in full as the case may be.
11. The Borrower hereby authorizes the Bank to debit his/her/their SB/Current Account No............................
at any time with the amount of installment, interest, charges, costs, insurance premium and expenses
incurred, as per the Rules of the Bank without any further reference to him/them and undertake(s) to
provide sufficient balance in his/her/their account(s).
12. The Borrower shall also pay usual Bank charges, commitment charges, incidentals, commission etc.,
as may be debited to the Borrower account from time to time in accordance with the usages and
practices of the Bank.
towards any other outstanding dues payable by the Borrower to the Bank in respect of other facilities
enjoyed by him and surplus amounts if any will be paid to the Borrower.
14. On demand, the Borrower agrees to deliver to the Bank Post-dated Cheques for the monthly installments
and/or give instructions for Electronic Fund Transfer from his account towards monthly installments
and the Borrower warrants that the cheques will be honoured, and EFT instructions shall be carried
out on first presentation. Any non-presentation of a cheque due to any reason will not affect the
liability of the Borrower to pay the monthly installments or any other sum. The Borrower agrees to
forthwith replace the cheques/issue fresh cheques, if required by the Bank. The Borrower(s) shall
not be entitled to call upon the Bank to refrain from presenting any cheque for payment and if the
Borrower does so, the Bank shall nevertheless be entitled to present the cheque for payment and in
the event of dishonour the provisions under Chapter XVII of the NI Act 1881, shall apply.
15. The Bank in its discretion has the right to recall the loan and demand the payment of all monies under
this agreement and enforce its security upon the happening of any one or more of the following
events:
i. Any breach of the terms and conditions of this agreement.
ii. The Borrower(s) is/are declared as bankrupt or insolvent by a Court.
iii. Any execution, attachment or restraint being enforced or levied on the property secured or on
Borrower personally.
iv. A receiver being appointed in respect of the secured property by any Court.
v. The occurrence of any circumstances which impairs, depreciates the value of security given by
Borrower.
vi. The occurrence of any event or circumstances which in the opinion of the Bank would or is
likely to prejudicially or adversely affect in any manner the borrowers capacity to repay the
loan.
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vii. Failure or neglect to utilize the credit facility or any part thereof for the purpose for which it was
viii. On the question whether any of the above events has happened, the decision of the Bank shall
be conclusive and binding on the Borrower.
ix. The Borrower defaults in paying any installments from the due date or fail to pay any interest
on the due date.
x. Any information submitted by the Borrower is found to be incorrect at a later stage.
16. The hypothecated Vehicles shall be a continuing security for repayment of the ultimate balance due
under this loan and/or any other loan/advance due to the Bank (including interest, Bank charges
etc.) even though the amount actually advanced by the Bank may have exceeded the sanctioned
limit or the account may at some point of time be at credit by reason of the sums deposited by the
Borrower or otherwise.
17. The hypothecated vehicle(s) are and will at all times be the absolute property of the Borrower(s), at
the sole disposal of the Borrower(s) and free from any other trust, pledge, lien or claim or encumbrance
(except for and subject to the security hereby created). The Borrower shall maintain at his cost
the hypothecated vehicle(s) in good order and working condition and serviced timely, replacing worn
out parts. The borrower will hold the same in trust for the Bank and be answerable to the Bank
accordingly.
18. That in the course of plying the vehicles, the Borrower will not do any act or suffer any omission
whereby the value of the hypothecated vehicles shall suffer or depreciate beyond the normal extent
of wear and tear. The Borrower shall ensure that the vehicle is driven by persons holding a valid
driving license required to be obtained in law from time to time for plying the hypothecated vehicle.
19. The Borrower shall adequately insure the hypothecated vehicle under a Comprehensive Motor Vehicle
Policy, with an Insurance Company approved by the Bank at all times during the currency of the loan;
Jointly in the name of the Bank and Borrowers against all types of loss/risk including damage by
accident, theft and/or damage by fire, Act of God and such other risks as may be required by the
Bank or be required by law to the full extent of the value thereof and keep the policy always current
by duly and punctually paying the premium from time to time as may be required by the Bank and
assign the benefits in insurance policy thereof to the Bank. The Bank shall be entitled for all benefits
of all such policies. The Borrower shall deliver to the Bank the relevant policy or policies of insurance
duly assigned to the Bank and maintain such insurance throughout the continuance of the security of
these presents. Further if the Borrower intends to insure for any other risk(s) apart from the risk(s)
mentioned above he/she/they is/are at liberty to do so on the same terms and conditions stated
above.
20. If the Borrower(s) make(s) any default in effecting such insurance as aforesaid or in renewing any
policy or in payment of such premia it shall be lawful (but not obligatory ) for the Bank to effect such
insurance or to renew or to pay such premia and to keep the hypothecated vehicle duly insured and
to debit the costs, charges and expenses incurred by the Bank for the same to the Borrowers all or
some or any of the said credit facilitys account(s) with the Bank and the same shall be treated as
advances secured by this agreement.
21. That the Bank shall not be under any liability whatsoever towards the Borrower(s) or any other
person for any loss or damage to or destruction to the said vehicles/goods and assets in whatever
cause or manner arising whether such vehicles/goods and assets shall be in the possession of the
- 74 -
Bank or not at the time of such loss or damage or the happening of the cause thereof. The Borrower(s)
shall at all times indemnify and keep indemnified the Bank from and against all Suits, proceedings,
costs, charges, claims and demands whatsoever that may at any time arise or be brought or made by
any person against the Bank in respect of any acts, matters and things lawfully done or caused to
be done by the Bank in connection with the said vehicles/goods and assets or in pursuance of the
rights and powers of the Bank under this Agreement.
22. That the Borrower further agrees to apply to the Registering Authority within whose jurisdiction the
vehicles stand registered for making a note of the interest of the Bank and hypothecation/lease of
the vehicle in favour of the Bank. In case the Borrower fails to do so the Bank may get the vehicle
registered on their own accord with their interest duly registered.
23. That the Borrower hereby agrees to execute such other documents in favour of the Bank as may be
necessary or advisable to hypothecate/pledge or further assure the hypothecated vehicles in favour
of the Bank.
24. That the Borrower shall not alienate or encumber or otherwise part with possession of the hypothecated
vehicle(s) without previous written consent of the Bank.
25. The Borrower shall permit the Bank, its officers, servants and nominees to enter into any premises, to
inspect or take possession of hypothecated Vehicles at all times, to verify and see its condition to
satisfy themselves that the security is not impaired or diminished in any manner.
26. The Borrower authorizes the Bank to take possession of the Hypothecated Vehicle, at all times, in
case of breach of any terms of this agreement or on default of payment of principal and/or interest by
the Borrower. The Borrower shall, in the event of the Bank exercising its right of seizure and sale of
Hypothecated Vehicles under these presents, deliver up the Hypothecated Vehicles to the Bank and
co-operate with the Bank in the matter of such seizure, removal of the Hypothecated vehicles elsewhere
and sale thereof.
27. That the Borrower agrees and undertakes to transfer the registration of the Vehicle in the name of
the Bank whenever required to do so by them and especially when the Borrower commits a breach of
any of the conditions of this agreement and the Bank is obliged to seize the Vehicle and sell the same
and adjust the sale proceeds as detailed in the agreement.
28. The Borrower shall furnish to the Bank periodically or as and when required by it, true statements of
account showing the business, assets and liabilities as also particulars of the vehicles and satisfy the
Bank as to the correctness thereof.
29. That any notice in writing required to be served on the borrower shall be deemed to be sufficiently
served if addressed to the Borrower(s) at the address given in the application or conveyed to the
Bank later.
30. That the Bank shall not be in any way liable or responsible for any loss, damage or depreciation
which the hypothecated properties may suffer or sustain on any account whatsoever while the same
are in the possession of the Bank during the continuance of this agreement or thereafter and all
such damage or depreciation shall be wholly on account to the Borrower(s) howsoever the same
has been caused nor shall the Bank be responsible for any shortage resulting from theft or pilferage
or otherwise howsoever notwithstanding that the hypothecated properties may be in the possession
or under the control of the Bank.
The Borrower(s) do hereby declare and state that all the information and data furnished by them for
- 75 -
his /her / their consent for disclosure of all / any of the information and data relating to them by the
Bank including the Credit facility availed / to be availed to Credit Information Bureau (India) Ltd and/or
any other agency/Reserve Bank of India/and or any other person or agency entitled to such information.
The borrower(s) do hereby declare that they are aware that the Bank may initiate steps to identify /
declare them as Wilful Defaulter in terms of applicable Reserve Bank of India Guidelines in case of
his / their intentional default.
Further I/We hereby confirm that I/We shall not raise any dispute in whatsoever manner regarding
information / details furnished / to be furnished to CIBIL / other authorities and same is binding on
me/us.
SCHEDULE
Vehicle of _________________ Make, Model _________________ bearing

Engine No.
Chassis No.
Registration Number:
Year of Registration :
Name of RTA with whom Registered.
Color:
Cubic Capacity:
In witness whereof the parties hereto have executed these presents the day and year first
herein above written
BORROWER
CO-OBLIGANT
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AB 6
No. ____________________ Place: _________________
` ____________________ Date: _________________
On Demand We jointly and severally promise to pay Andhra Bank ________________________

or order the sum of Rupees ______________________________ together with interest on such sum from
this date at __________ per cent above Andhra Bank's Base rate with a minimum of ________ per cent
per annum with monthly / quarterly / half yearly rests for value received.
For ___________________________
1. XXXX
2.
3.
4.
_____________________________________________________________________________________
AB 7
No. ____________________ Place: _________________
` ____________________ Date: _________________
On Demand I / We _______________________________________ promise to pay Andhra Bank

_______________________ or order the sum of Rupees ____________________________together
with interest on such sum from this date at __________ percent above Andhra Bank's Base rate with a
minimum of ____________ percent per annum with monthly / quarterly / half yearly rests for value received.
_________________________
_________________________
_____________________________________________________________________________________
AB 7A
No. __________________ Place: _____________
` __________________ Date: ______________
On Demand I / We _______________________________________ promise to pay Andhra Bank

_______________________ or order the sum of Rupees ____________________________ together
with interest on such sum from this date at ______ percent per annum with monthly/quarterly/half yearly
rests for value received.
_________________________
_________________________
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AB 8
GENERAL FORM OF GUARANTEE
Place : ______________
Date: _______________
Andhra Bank
___________________________
In consideration of the ANDHRA BANK, a Banking Company, constituted under the Banking Companies
(Acquisition & Transfer of Undertakings) Act, 1980, having its Head Office at 5-9-11, Dr. Pattabhi Bhawan,
Secretariat Road, Saifabad, Hyderabad -500004 and among others, a Branch at ................
hereinafter called the BANK which expression shall, wherever the context so admits or requires, mean and
include its attorney, successors and assigns, giving credit or accommodation, or granting facilities to
Mr./ Mrs/ Ms/ M/s........................................................................................... hereinafter called the
PRINCIPAL which expression shall, wherever the context so admits or requires, mean and include its attorney,
successors and assigns, by making/opening /continuing a loan/overdraft/cash credit account or by
discounting/purchasing and/or negotiating bills with or without security and/or/in consideration of the Bank
opening and giving letters of credit and/or trust receipt facilities in favour of PRINCIPAL on terms and
conditions that may be settled between you and the said PRINCIPAL at any time or from time to time without
reference to me/us.
I, ............................................. S/o. D/o, W/o ....................................... residing at ....................................
.....................................................................................................................................................................
.....................................................................................................................................................................
.....................................................................................................................................................................
.....................................................................................................................................................................
Jointly and severally hereby agree with and guarantee to you the due payment and discharge on demand
without demure of all amounts due and payable to you by the PRINCIPAL (herein after called The Principal)
at any time in respect of the said facilities together with interest banking and other charges and expenses
that the Bank may in course of its business charge against the Principal together with all relative interest
charges, costs (as between attorney and client) and expenses PROVIDED NEVERTHELESS that our liability
under the Guarantee shall not exceed in the whole the sum of `....................................
(Rupee...................................................................................... only)
apart from and in addition to all interest, Banking charges, Legal and other costs, charges and expenses
above referred to
For the consideration aforesaid I/We jointly and severally hereinafter called the GUARANTOR(S) which
expression shall, wherever the context so admits or requires, mean and include its attorney, successors
and assigns further agree as follows:
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1. This guarantee shall be continuing security binding me/us and my/our personal representative until
the expiration of three calendar months from the receipt by the Bank of a notice in writing to discontinue
it and notwithstanding the discontinuance by or and release or granting of time or indulgence to the
Principal, any one or more of us this Guarantee shall remain a continuing security as to the other or
others and it is discontinued by notice, the Guarantee shall nevertheless as to the party or parties
giving such notice continue to be available subject to the aforesaid limit of total amounts for and shall
extend to all indebtedness and liabilities of the Principal to you at the date of the receipt of such
notice whether then certain or contingent and whether then payable forthwith or at some future time
or times and also for and to all credits then established by you for the Principals and for and to all
credit facilities granted to cheques, drafts, bills, notes and negotiable instruments etc., drawn by or
for the amount of the principal on you and dated or purporting to be dated on or before such date
although presented to or paid by you after such date and that in the event of my/or any of us dying or
becoming under disability the liability of the executors, administrators or regd. representatives of
such persons so doing and of his estate shall continue until the expiration of three calendar months
from the receipt by the Bank of a written notice given by such legal representative (or the survivors of
me / us ) to determine this guarantee. You shall be at liberty on receipt of any such notice as
contemplated in this clause at any time within the three calendar months to open a fresh account
and/or to grant fresh facilities to the Principal and to appropriate thereto all payments subsequently
made to you by the principal and not expressly appropriated to the old account without prejudice to
my / our estates liability to the extend aforesaid.
2. The Guarantee is additional and without prejudice to any securities or obligations which you may now
or hereafter have from us, from the Principal or from any one else in respect of any indebtedness or
liabilities hereby guaranteed and all rights and remedies in respect thereof are reserved.
3. This Guarantee shall be a continuing Guarantee and shall not be considered as wholly or partially
satisfied or exhausted by any payments from time to time made to the Bank or any settlement of any
accounts or by reason of the account being brought to a credit at any time or from time to time or its
being drawn upon to the full extent or exceeding the full extent of the limit from time to time and its
being reduced or extinguished and thereafter re-opened. The Guarantee shall continue in force
notwithstanding the discharge of the principal by operation of law or my death or the death of any one
of us and shall cease only on payment of the amount guaranteed hereunder either by me or any one
of us.
4. I/We expressly agree that the Bank shall have full discretionary power, without my/our further assent
or knowledge and without discharging or in any way affecting my/our liability under this guarantee,
from time to time and any time to negotiate with the Principals and settle and/or alter the terms and
conditions to promise to grant time or indulgence to or not to sue the Principal or any person liable
with or for the Principal, whether as guarantor or otherwise, or compound or make any other
arrangements with the Principal or any person so liable with or for the Principal as the Bank may think
fit and to hold over, renew vary exchange or release in whole or in part from time to time securities
held or to be held by the Bank for/or on account of the moneys and liabilities intended to be hereby
secured or any part thereof. I/We also agree that I/We shall not be discharged from my/our liability by
your releasing the principal debtor or by any act or omission of yours the legal consequence of which
may be to discharge the principal debtor or by any act of yours which would, but for this present
provision, be inconsistent with my/our rights as surety or by your omission to do any act, which but for
this present provision, your duty to me/us would have required you to do, we hereby consent to each
and every of the acts mentioned above as you may think fit. Moreover though as between the principal
debtor and me/us, I am/we are sureties only. I/We agree that as between yourselves and me/us I am/
we are Principal debtor (s) jointly with him and accordingly, I/We shall not be entitle to any of the rights
- 79 -
conferred on sureties by Section 133,134,135,139, and 141 of the Contract Act. And we further
expressly agree that the Bank shall also have discretionary power without my/our further assent or
knowledge or without discharging or in any way affecting my/our liability under the Guarantee from
time to time and at any time agreed to the variations of the terms and conditions of any letter of credit
that has been and/or may be opened for the benefit of the Principal to convert a documentary letter
of credit into clean or open letter of credit and vice versa to convert a revocable letter of credit into
irrevocable one and vice versa to vary or alter the other terms, as to the nature and amount of credit
was risk regards the conditions of advice. The nature of documents to be tendered the names of
beneficiaries, the nature, quality of goods, the country of the origin and the conditions regarding port
of shipment certificates or country of origin, nature, quality, quantity, weight otherwise the terms of
shipment such as FOB/CIFC/FAS/CIFC & F as regards shipment by installments or to convert a
contract for shipment by installments into shipment into one lot the terms of draft as to insurance and
terms there of the terms regarding payment and to part with the shipping documents and/or goods
covered by such shipping documents negotiated the said letter of credit on the Trust Receipt of the
Principal or otherwise and other conditions as may be comprised in the letter or credit within the limit
of mentioned herein above and to release or vary the security granted therefore and for the purpose
aforesaid to settle and/or alter the terms and conditions to grant time or indulgence to the Principal or
any person liable with or for the Principal whether as Guarantor or otherwise or compound or make
any other arrangement with the Principal or any person so liable with or for the Principal or any
person so liable with or for the principal as the Bank may think fit and to hold over renew, vary,
exchange or release in whole or in part and from time to time any securities held or to be held by the
Bank for or on account of the moneys and liabilities intended to be secured hereby or any part
thereof. And for all the purposes of this clause the Principal is empowered to give consent on my / our
behalf and any consent given by the Principal shall be deemed to have been given by me/us and
shall bind me/us in all respects as if the same had been expressly given by me/us in writing.
5. The Bank may recover against me/us to the extent herein before mentioned notwithstanding that any
securities given or to be given to the Bank may be void, defective or informal notwithstanding that the
Principal or his agents, partners, directors or officers may have exceeded his or their powers to that
arrangements with the Bank may have been ultra vires and without being bound to enforce its claim
against the Principal or any other persons or other security held by the Bank. The Bank shall not be
bound to enquire into the powers of the Principal or his agents or partners, directors or officers
purporting to act on behalf of the Principal and all moneys due or liabilities incurred shall be deemed
to form part of the present Guarantee not withstanding that the Principal or his agents, partners,
directors or officers may have exceeded his or their powers or the arrangement with the Bank may
have been ultra vires.
6. I/We waive in the Banks favour all or any of my/our right against the Bank or the Principal as far as
may be necessary to give effect to any of the provisions of this guarantee.
7. I/We declare that I/We have not received any security from the Principal for the giving of this Guarantee
and I/we will not so long as any moneys remain owing by the Principal/s to the Bank or any liability
incurred by the Bank remains outstanding take any security in respect of my/our liability hereunder
without first obtaining Banks written consent and I/we agree that in the event of my/our taking any
such security the amount for which I/We am/are to be liable under this Guarantee shall be increased
by the amount by which the dividend payable by the Principal to you on a winding up is there by
diminished.
8. I/We further agree that in respect of my/our liability hereunder the Bank shall have a lien on all
securities belonging to me/us now or hereafter held by the Bank and all moneys now or hereafter
standing to my/our credit with the Bank on any current or any other account.
- 80 -
9. And this guarantee shall be applicable to the ultimate balance that may become due to Bank from
the principal and until repayment of such balance the Bank shall be entitled to retain, realize or
otherwise dispose off in such manner as the Bank may think fit any securities now or hereafter held
by the Bank and without any liability to account to me/us for my/our and portion of such securities or
of the proceeds hereof until all your claims have been satisfied, and in the meantime, I/we will not take
any steps to enforce any right or claim against the Principal in respect of any moneys paid by me/us
to the Bank hereunder. And further, that if the Bank should receive payments from the Principal or
any person on behalf of the Principal or from any security held by the Bank or if the Principal shall
become insolvent or go into liquidation or compound with his creditors, the Bank shall be at liberty
without discharging my/our Liability to make or assent to any compromises composition or
arrangements or to prove and to rank as creditor in respect of the amount claimable by the Bank or
any items thereof, and to receive dividends there upon and all such payments and dividends received
shall be treated as payments in gross, and my/our liability shall extend to the ultimate balance after
deducting such payments and to the entire exclusion and surrender of all my/our rights and sureties
in competition with the Bank, any rule of law on enquiry to the contrary not-withstanding. And I/We
shall not by paying off the sum guaranteed or any part thereof, or upon any other ground, proved or
claim to prove in respect of the sum guaranteed or any part thereof or take advantage of any securities
held by the Bank until the whole of your claim against the principal has been satisfied.
10. A demand in writing shall be deemed to have been duly given to me/us or my/our heirs or assigns by
leaving the same at my/our last known address herein written and shall be effectual notwithstanding
any change of address or notwithstanding notice thereof to the Bank, and such demand if sent by
Post shall be deemed to be received by me/us or my/our heirs, assigns 24 hours after posting thereof,
and shall be sufficient if signed by any officer of the Bank, and in proving such service it shall be
sufficient to prove that the letter containing the demand was properly addressed and put into the
post.
11. In the event of this guarantee being determined either by notice by me/us or by demand in writing by
the Bank, it shall be lawful for the Bank to continue the account of the principal notwithstanding such
determination and my/our liability for the moneys advanced or paid or agreed to be advanced or paid
and liabilities or obligations incurred by the Bank at the date when guarantee is determined shall
remain notwithstanding any subsequent payment or out of the cash credit by or on behalf of the
principal up to the limit aforesaid.
12. This Guarantee shall not affect or be affected by any other or further securities taken or held by you
or by any loss by you of any collateral or other security nor by your failing to recover by the realization
of collateral securities or otherwise any sum or sums due from the Principal or any other person or
any lapses on your part, nor shall you be responsible to me/us for any such loss or lapses.
13. Any account settled or stated between you and the Principal or admitted by the Principal shall be
accepted by me/us as conclusive evidence. A certificate in writing signed by any officer of the Bank
stating the amount at any particular time payable under this guarantee shall be conclusive evidence
against me/us.
14. This Guarantee shall be enforceable notwithstanding any change in the name/Constitution of the
Bank and it shall ensure for the benefit of any Banking Company with which the Bank may become
amalgamated or to which the Bank shall assign it.
15. Should the Principal be a limited company, corporate or unincorporated body, committee, firm,
partnership, trustees or debtors or a joint account, the provisions hereinbefore contained shall be
construed and take effect where necessary as if words importing the singular number includes also
- 81 -
the plural number. This guarantee shall remain effective notwithstanding any death, retirement, change,
accession or addition as fully as if the person or persons constituting or trading or acting as such
body, committee, firm, partnership, trustees, or debtors on joint account at the date of the principals
default or at any time previously was or were the same at the date hereof. In the event of there being
more than one guarantor the liability of the remaining guarantors shall not be affected or released or
given up by time or other indulgence to one or more of the guarantors nor by the death or any one or
more of the guarantors until notice shall have been given to the Bank.
16. The Bank shall be entitled, to fix the Principal a period for such loan/over draft/cash credit account
facility and to alter or extend such period from time to time. The Bank shall be entitled from time to
time to take renewals of hundies, promissory notes and other documents and securities from the
Principal. The Bank shall be entitled to take one hundi or promissory note or other document for the
whole amount hereby guarantee or to split up the amount and take separate documents for each part
and to take any such documents from the principal alone or from the Principal and other person or
persons whose identity may vary from time to time. My/our liability under this guarantee shall not be
discharged or affected in any way by reason of any such or similar acts or dealings.
17. I/We do hereby declare and state that all the information and data furnished by me/us/them for
availing the credit facility are true and correct. I/We unconditionally and irrevocably agree and give
my/our consent for disclosure of all/any of the information and data relating to me/us by the Bank
I/We further unconditionally and irrevocably agree that in case he/she/they commit(s) default in
repayment of the credit facility granted, the Bank and /or the Reserve Bank of India/CIBIL or any
other agency authorized to collect such information will have an unqualified right to disclose or publish
my/our name(s) and photographs as defaulters in such manner and through such medium as the
Bank or the Reserve Bank of India or CIBIL or any other agency authorized in their absolute discretion
may think fit. I/We am/are aware that the Bank may initiate steps to identify/declare me/us as Willful
Defaulter in terms of applicable Reserve Bank of India Guidelines in case of my/our intentional default.
binding on me / us.
Signature of the Guarantor(s)
Name : .
Address:
.
.
- 82 -
AB 9
OFFER OF SECURITY
To
The Manager
Andhra Bank
_______________
Dear Sir,
With reference to my/our application or application of Mr. or M/s. ____________________________
for loan/cash credit/overdraft. I/we offer the security of (Property description)_______________________
_____________________________situated at_______________________________________________
I/We declare :
1. That the said property belongs to me/us absolutely and no one else is interested therein and the
same is free from encumbrances or maintenance claims:
2. That the property is not the subject matter of any pending litigation, execution proceedings or
attachment in any civil, criminal or revenue court or for arrears of income tax and that there are no
arrears of municipal or revenue taxes thereon:
3. That the property may be insured by the Bank for the sum of ` _________________(give value of
the Property).
4. That irrespective of the application for the facilities being finally sanctioned or rejected for any reason,
I / We agree to pay the charges towards the fee to the Banks advocate for the scrutiny of title deeds,
or the fee to the engineer who is to evaluate the properties.
I/We make the aforesaid declaration knowing that on the faith thereof and believing the same to be
true the Bank will consider my/our application or the application of_____________________________for
loan/cash Credit/overdraft.
Yours faithfully,
Dt:____________20
Signature of owner of property
- 83 -
AB 10
(To be stamped as Memorandum of deposit of title deeds)
(ALL PAGES TO BE SIGNED BY THE PARTIES)
LIMITs : Place : _______________
Date : _______________
To
The Manager
Andhra Bank
Dear Sir,
I/We write to put on record that as already agreed upon, I/We have on .................................... as
detailed below deposited with you at. ...................................................... the following documents of title to
immovable property with intent to secure the repayment to the Bank of moneys that are now due or shall
from time to time or at any time be due from ....................................................... me/us either solely or
jointly with any other person or persons to the Bank whether on balance of account or by discount or
otherwise in receipt of Bills of Exchange, Promissory Notes, Cheques and other negotiable instruments or
in any manner whatsoever and including interest, commission, other banking charges and any law cost
incurred in connection thereto.
LIST OF DOCUMENTS
S.No. Name(s) & Address of Date of Deposit Nature of Title Deed Description of Depositors
the Depositor of the of Title Deeds and Date Property Estimated Value
Title Deeds of the Property
I Property No. I
I (i)
I (ii)
I (iii)
II Property No. II
II (i)
II (ii)
II (iii)
III Property No. III
III (i)
III (ii)
III (iii)
Yours faithfully,
Signatures (Depositors)
Property No. I Property No. II Property No. III
- 84 -
AB 11
(To be stamped as Memorandum of deposit of title deeds )
ALL PAGES TO BE SIGNED BY THE PARTIES
Place : _______________
To Date : _______________
The Manager
Andhra Bank
Dear Sir,
I/We write to put on record that as already agreed upon, the following documents of title to immovable
property were deposited on______________________ as detailed below, with you at _________________
with intent to secure the repayment to the Bank of moneys due from or may be due from time to time or at
any time be due from __________________ or me/us either solely or jointly with any other person or
persons to the Bank whether on balance of account or by discount or otherwise in respect of Bills of
Exchange, Promissory Notes, Cheques and other negotiable instruments or in any manner whatsoever
and including interest, commission and other banking charges and any law costs incurred thereto, shall
also be security to you hereafter for the payment of any monies that are now due or that may be due from
time to time or at any time.
i. Towards the following additional limits / enhancements of limits sanctioned now to me/us:
_______________________ ` _______________________
_______________________ ` _______________________
ii. From _________________ also or me/us either solely or jointly with any other person or persons
to the Bank whether on balance of account or by discount or otherwise in respect of Bills of
Exchange, Promissory Notes, Cheques or other Negotiable Instruments or in any manner
whatsoever and including interests, commission and other banking charges and any law costs
incurred thereto.
LIST OF DOCUMENTS
S.No. Name(s) & Address of Date of Deposit Nature of Title Description Depositors
the Depositor of the of Title Deeds Deed of Property Estimated Value
Title Deeds and Date (full details of the Property
along with
boundaries
should be given)
I Property No. I
I (i)
I (ii)
I (iii)
Signature of Depositors

- 85 -
II Property No. II
II (i)
II (ii)
III Property No. III
III (i)
III (ii)
Yours faithfully,
Signature of Depositors
- 86 -
AB 12
(To be executed on Non Judicial Stamp paper for adequate value)
DRAFT POWER OF ATTORNEY
I, ___________________________________S/o, D/o, W/o ___________________________________
residing at ________________________________________________________do hereby appoint and
constitute, Sri / Smt ____________________________________________________________________
residing at _____________________________________________________as my Agent and Power of
Attorney holder to deposit my title deeds of the property situated at _______________________________
(more fully described in the Schedule below) with Andhra Bank __________________________________
Branch on ________________________________ for creating security by way of Mortgage for the limits/
facilities sanctioned by the Bank in favour of myself and or Mr/Ms/M/s. ____________________________.
I do hereby further authorize the said Sri / Smt ______________________________________________
to make the said deposit of the title deeds and do all incidental and consequential acts in pursuance there
of which the bank demands in this behalf. All actions taken by Sri/Smt_____________________________
in pursuance of this Power of Attorney shall be binding on me.
Place :
Date :
(Signature)
- 87 -
AB 13
(TO BE STAMPED AND REGISTERED AS A MORTGAGE DEED -
As per the Stamp & Registration Act of the State where it is executed)
MORTGAGE DEED
THIS DEED OF MORTGAGE executed on this _________________________day of________________
20____ at __________________________________ by M/s___________________________________
a Company Registered under the Companies Act 1956 / 2013 having its registered Office at ___________
_____________________________________ represented ____________________________ by its duly
authorized Director/representative; Sri ____________________________________________________

Or
Shri/Smt. _______________________________ S/o/W/o _____________________________________
R/o ___________________________________________ the proprietor, carrying on business in the name
and style of M/s. ___________________________________________________ a proprietorship firm.

Or
Shri/Smt. _______________________________ S/o/W/o _____________________________________
R/o _______________________________________________________________ Managing Partner and
Shri/Smt. _________________________________ S/o/W/o ____________________________________

R/o ___________________________________________ Partner, carrying on business in the name and
style of M/s _________________________________________________________ a partnership firm.
Or
Shri/Smt. _______________________________ S/o/W/o _____________________________________
aged _________ years, R/o. ______________________________________________________ and/or
Shri/Smt. _______________________________ S/o/W/o _____________________________________

aged _________ years, residing at ______________________________________________________
(Inapplicable portion to be struck off)
Hereinafter the afore-described persons shall be called the Mortgagors which expression shall include
their heirs, Executors, administrators and assigns, wherever the context or meaning shall so require or
permit, of the first part, in favor of:
Andhra Bank, A body corporate constituted under the Banking Companies (Acquisition and Transfer of
Undertakings) Act, 1980 having its Head Office at 5-9-11, Dr. Pattabhi Bhawan, Saifabad, Hyderabad and
amongst other branches having a branch office at ....................................................... hereinafter called
The Bank, which expression includes its successors and assigns wherever the context or meaning shall
so require or permit, of the second part:
WHEREAS the borrower(s) / Mortgagor(s), approached the Bank for financial accommodation for the purpose
of their business by way of (give the faculties sanctioned) facilities for the present and further facilities that
may be required hereafter during the course of the business.
- 88 -
Or
WHEREAS the Mortgagor stood as a Guarantor/ to obligant for securing the facility/ loan granted by the
Bank mentioned herein above to the borrower Sri/Smt/M/s ____________________________________
R/o _________________________ granted to the borrower on the request of the Mortgagor/Guarantor.
AND WHEREAS the bank agreed to grant credit facilities to the mortgagor as may be required from time to
time up to a limit of ` _____________ (Rupees ______________________________________________)
subject to the borrower providing sufficient security of immovable properties.
(Inapplicable portion to be struck off)
AND WHEREAS the Mortgagor(s) agreed to furnish the Land/building property bearing Door
No._______________________ Land/house site ____________________________________situated at
___________________________________________________________________________________
(in case of multiple properties all may be given) and more particularly described in the schedule hereunder,
as security for loan/facilities granted/extended to the borrower(s) / Mortgagor for the said loan(s) and
agreed to repay the amount(s) that may be due under the credit facilities that may be sanctioned by the
Bank from time to time along with interest thereon at the rate hereinafter mentioned and subject to the rules
and conditions of the Bank and in the manner, hereinafter appearing.
The Mortgagor has joined herein at the request of the borrower as per the terms of sanction of the Bank,
undertaking personally the repayment of the amounts that may become due from the borrowers and/or the
mortgagors towards the credit facilities granted by The Bank to the borrowers/mortgagors together with
interest thereon and other charges as per the rules of the Bank:
NOW THEREFORE, THIS DEED WITNESSES AS FOLLOWS:
1. In pursuance of the above agreement and in consideration of the Bank agreeing to advance
` ________________ (Rupees __________________________________________________) by
way of (give all the facilities sanctioned from time to time), the mortgagor(s) both hereby covenant
with the Bank, that he/they shall repay the said sum of ` _______________ advanced / to be
advanced hereafter as herein before provided (and hereinafter collectively called the said principal
sum) on or before the together with interest on the said principal sum or the balance thereof remaining
unpaid for the time being at the rate of _______ percent over banks Base rate with quarterly rests
but however subject to a minimum of ______ percent with quarterly rests; provided further that if the
amount due is not paid within the time stipulated as above, the mortgagor(s) further undertake to pay
extra interest of ___________percent over the rate stipulated from the date of default.
2. That this however shall not be deemed to allow the interest or repayment of the monies as aforesaid
to fall in arrears or prejudice the rights of The Bank to recover the amount due together with such
interest by instituting necessary legal proceedings or other actions.
3. The Bank shall not be bound to further advance any sums even though the maximum of ` __________
is not already permitted to be availed, if the utilization of the amounts already allowed are not to the
satisfaction of The Bank and/or for any other reason whatsoever in the sole discretion of The Bank.
4. For the consideration aforesaid the mortgagor hereby transfers and mortgage, to the Bank by way of
simple mortgage, the property described in the schedule hereto annexed; together with the vacant
site, appurtenances, rights of way, easements and more particularly described in the schedule
hereunder and to the intent that the schedule property shall remain charged as Security for the due
repayment of the Bank of the said Principal money, interest and costs in accordance with the covenants
herein contained.
- 89 -
5. AND the Mortgagor does hereby agree and covenant with the Bank that he/they will pay or cause to
be paid to the Bank the principal sum aforesaid together with interest then due, on or before the due
date conveyed by the Bank without delay or default AND the indenture further witnesseth and it is
hereby agreed and declared by and between the parties that in case the said sum advanced by the
Bank with interest at the stipulated rate is not paid within time and in the manner aforesaid, it shall be
lawful for the Bank to enforce this mortgage and to cause the property or any portion sold and
appropriate the proceeds towards satisfaction of the mortgage debt provided, however, that in the
event of any shortfall or deficiency, i.e., should the claim be not then satisfied, the Bank shall be
entitled to recover the balance personally as against the Mortgagor.
6. The mortgagor hereby further covenants with the Bank, as follows:
i) That this mortgage shall operate as continuing security and shall not be considered as satisfied
by payment of the whole or any part of the whole, or any part of any sum or sums of money
owing as aforesaid and even though the account may ultimately become due as the ultimate
balance due from the mortgagor(s) to the Bank under the facility now sanctioned or towards
any further facilities that may be allowed from time to time or in renewal thereof from time to
time *up to the limit of `__________________ as aforesaid exclusive of interest, bank charges,
law charges, etc. and the said accounts are not to be considered as dosed for purpose of this
security and the security shall not be considered as exhausted merely by reason of the said
accounts being brought to credit at any time or from time to time, provided and subject to the
mortgagors right of redemption, and at the request of the mortgagor or payment of all the
monies towards the said principal sum and interest hereby secured by these presents or by law
payable by the mortgagor, then and in such a case the Bank shall at the cost of the mortgagor
re-convey the schedule property to the mortgagor or as he may direct.
ii. That Section 67 of the Transfer of Property Act (Act __________of ___________ ) shall not
apply to these presents and the Bank notwithstanding that it may hold two or more mortgages
executed by the mortgagor including these presents in respect of which it may have the right to
obtain the same kind of decree under the said section 67, shall be entitled to see and obtain
such a decree as any one of the mortgages without being bound to sue on all such mortgages
in respect of which the mortgage money shall have become due.
iii. That the borrower and the mortgagor shall utilize the money or monies that may be advanced
by The Bank for the purpose for which the monies were advanced and at all times during the
continuance of the mortgage maintain the mortgage property in good repair, pay all revenues
and taxes as and when they are due to the Government or local bodies, keep the property free
from any charges whatsoever, insure the property with Bank clause, against such risks including
fire, strike, riot, civil commotion and such other risks with an insurance company approved by
the bank.
iv. That if the mortgagor fails to pay the taxes, rents and dues to the Government or local bodies
etc., or insure the building, the Bank may in its discretion but without any obligation to do so,
pay the taxes, rents and dues or insure the property, and all such sums shall be deemed to
have been properly expended and repaid by the mortgagor on demand together with interest
as on the principal sum and all such sums also stand charged on the schedule mentioned
property. Such amounts shall first be recovered by appropriating any amounts received, first
towards recovery of such payments and thereafter of interest and costs and then towards
payment of principal money hereby secured.
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v) That the borrower/mortgagor unconditionally and irrevocably agree that in case they
commit default in repayment of the facilities extended to him/them (borrower), or in repayment
of the interest thereon, or any agreed installments of the facilities as on due date, the Bank /
RBI / CIBIL will have a right to disclose or publish his/her/their name(s), name of the Company/
Firm/Unit and or its/their Directors/Partners/Proprietors as defaulter/s in CIBIL and in such manner
and through such medium as the Bank or Reserve Bank of India or any other Agency authorized
by the Bank.
IN WITNESS WHEREOF the mortgagor(s) hereto have subscribed their hand at _______________
on the ______________________day of ____________________month _________________________
first above mentioned in the presence of:
WITNESSES:
1. MORTGAGOR.
2.
SCHEDULE
Plot / House bearing No. _________________________________ situated at _______________________

within the Sub-registration District of _____________________________________________ bearing Plot/
Municipal / Survey No. ___________________ admeasuring _____________ sq. yards along with entire
building /construction thereon admeasuring sq.ft.
Bounded by:
NORTH: EAST:
SOUTH: WEST:
WITNESSES :
1. ______________________ MORTGAGOR
2 ________________________
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AB 14
Place : _________________
Date : _________________
To
The Manager
Andhra Bank
_________________________
Dear Sirs,
Ref: Bills drawn on our customers -Usance Bill Discounting and Clean
and Documentary Bill Purchasing Limits.
*******
In consideration of your collecting and/or discounting and /or purchasing or agreeing to collect, Discount
and/or purchase all cheques, bills, hundies and other instruments with or without government securities and
share certificates or other documents including railway receipts, bills of lading or other documents constituting
title to goods now lodged or which may at any time or from time to time be lodged by me/us with you. I/We
agree that all such collection discount or purchase of cheques, bills, hundies and other instruments, until
further altered or specifically otherwise provided for, shall be upon the following terms and conditions
1) I/We jointly and severally undertake to abide by the rules and regulations of the Bank that are in force
from time to time.
2) The bank is at liberty to withdraw or cancel all or any of the facilities sanctioned to me/us and demand
repayment of the entire balance of advances made to me/us and outstanding at any time under any or
all the limits without assigning any reasons therefore. I/We jointly and severally hold ourselves liable
and undertake to repay the entire amount with interest and all costs and other charges, if any, incurred
by the bank, and I/We further agree to indemnify the Bank and/or its assigness against any loss or
damages or any charges that it may occur due to the drawers acts or omissions as the case may be.
3) I/we agree that the limit/s sanctioned and the terms of advance, like rate of interest, margin, duration,
etc., may be revised, cancelled at your sole discretion for any reason whatsoever, including all or any
of the following reasons, viz., to suit the exigencies of business, or changes in the market conditions,
or to implement the policies of the State/Union Governments, or the Reserve Bank of India. On such
notice of revision/cancellation of all or any of the above limits, or change in any of the terms, I/we
agree to pay back the amount/s due to your Bank, and/or abide by the new or revised terms.
4) I/We undertake, in case I/we fail to repay the loans on or before due date or to pay the necessary
margins or amounts and reduce the liability as and when so desire to pay ______ % extra interest on
the amounts due to you as per rules in force for the time being in our bank and authorise you to take
such action as you may deem fit; including sale by public auction or by private negotiation, as per you
convenience, of the security held by your Bank, without any further notice to me/us. You are at liberty
in our sole discretion to appropriate the monies thus realized towards the sum/s due to you in full or in
part satisfaction, according to the amount/s realized or available. If any amount is still found due under
whatever head, I/we undertake to pay if personally on demand by you.
5) As security for the said advances I/We shall deliver to you such bills of exchange and promissory
notes as are acceptable to you and are drawn and payable in India (or abroad) and arising out of
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bonafide commercial or trade transactions and which bills of exchange and promissory notes shall be
endorsed by me/us to you.
6) I/We enclose a Demand Promissory Note for `.............................. (Rupees ...............................
.......................................................................................) signed by me/us which is given you as security
for the repayment of any overdraft which is at present outstanding in the name of us and also for the
re-payment of any overdraft to the extent of `.............................. (Rupees ...............................
.......................................................................................), which me/us may avail hereafter and the
said Pronote is to be a security to you for the repayment of the ultimate balance or sum remaining
unpaid on the overdraft and I/We am/are to remain liable on the Pronote notwithstanding the fact that
by payment made into the account of the overdraft from time to time, the overdraft may from time to
time be reduced or extinguished or even that the balance of the said account may be at credit.
7) I/We also represent , assure and lead you to believe that every scrip of Government securities and
shares and every document constituting title to goods including railway receipts, bills of lading etc.,
handed in by me/us to you as genuine and that the same arise out of bonafide commercial or trade
transactions and agree that you are entitled to treat so without any further inquiry and that I/We agree
to indemnify you and keep you indemnified against any loss caused to you by reason of the said
documents subsequently turning out to be forged and not genuine and/or by reason of goods pertaining
to the said documents subsequently turning out to be not the same as stated in the document or of a
bad or inferior quality and also against any loss caused to you by the misdelivery or wrong delivery by
the Railway and Postal Authorities or other transport authorities of the Government securities and
shares and goods comprised in the documents and Railway receipts or other documents for any
reason whatsoever.
8) I/We hereby certify that such bill of exchange, or promissory note etc. delivered to you arise out of
bonafide commercial or trade transaction or transaction and it is understood that the said advances
will be made and will be continued on the faith of the truth and corrections of such certificate.
9) I/We undertake that I/We will not deliver to you any bill or promissory note in terms of this Agreement
unless I am/we are satisfied that all parties liable thereon are financially sound. solvent and creditworthy
and as such good for the purposes of discount and that by delivery I/We certify the signature of such
persons thereon.
10) I/We undertake that each such bill or promissory note so delivered to you will be paid on its due date
and in default of payment by the principal debtor thereon, will be paid by me/us to you, inclusive of
interest at % p.a with monthly/quarterly/half yearly rests and all charges, expenses incurred and
charges/fee incurred by you or your agents or drawee banks.
11) I/We agree that in default of payment by me/us under the terms of clause (10) hereof you may but
without any obligation on you to do so, debit my/our current account with you for the amount due by
me/us under such bill or promissory note and reimburse the amount together with interest and all
other charges without prejudice to your right to use.
12) Without prejudice to your remedies aforementioned, I/We agree that I/we will act as your agent for the
realisation of any bill or promissory note at maturity and take all such steps as may be necessary for
that purpose. I/we further agree that on realization and pending payment to you of the proceeds of
any such bill or promissory note, I/We will hold such proceeds as trustees for you and shall forthwith
pay such proceeds to you.
13) I/We agree that the fact of your not taking steps to enforce payment of such bills and promissory notes
or any of them against the principal debtor thereon shall in no way release me/us from our liability
- 93 -
thereon and I/We further agree that it shall be unnecessary for you to give any notice of dishonor, as
per Sec.91 to 93 of the Negotiable Instruments Act and further agree that you may carry on the
collection of the bills as it suits you, absolving you of the provisions in Sec.61.62,63 and 83 of the
Negotiable Instrument Act.
14) I/We agree that I/we will from time to time, while these advances continue and whenever required by
you to do so, furnish you with true reports in such form as you may prescribe regarding the solvency
of the parties on each such bill or promissory note and agree to advise you promptly of any change in
the position of any such party which can reasonably be considered to effect your security hereunder.
15) I/We agree that this agreement shall operate as a continuing security for the said advances
notwithstanding the existence of a credit balance at any time or any partial payments or fluctuations of
accounts or withdrawal of any part of the security.
16) You may at your option but at my/our costs, risk and responsibility in all respects appoint an agent who
shall be my/our agent to collect. For purposes of collecting the amounts due under the various kinds
of Bills given, you are at liberty to choose any Banker you like for the said purpose and we will not hold
you responsible if any default is made by the Banker so chosen by you or the amount is not received
by you.
17) You or the Agent at your or his option, may send for collection or payment of discount on my / our
account at my/our entire costs, risk and responsibility by post or by other manner to another agent or
to the drawee there of any cheques, bills, hundies or other instruments with or without share certificates,
Government securities or other documents including railway receipts, bills of lading or other documents
constituting title to goods attached. I/We agree that such other agent or the drawee shall be deemed
to be my/our agent for collection at my/our entire risk and responsibility in all respects.
18) You or an agent may at your or his option but at my/our risk and responsibility received in exchange
for cheques, bills, hundies and other instruments, cheques, bank drafts or other mandates for payments
in lieu of cash.
19) Receipt by you or by an agent of cheques, bank drafts, or other mandates for payments as above and
the loss, mutilation or dishonor thereof and or of other securities of any description is not to prejudice
our rights on any cheques, bills, hundies or other instruments in case of dishonors or non-payment as
the case may be, nor shall any proceedings taken thereon or your granting time or entering into any
arrangements with any parties to such cheques, bills, hundies or other instruments (and I/We hereby
consent to your so granting time to entering into arrangements) prejudice or affect your absolute
recourse to me/us under the arrangement.
20) Should you or an agent receive, in exchange for such cheques, bills, hundies or other instruments,
payment by an instrument which you or the agent cannot conveniently collect through normal channels
it is clearly understood that such instruments may be collected in any manner and by and agency
(including dispatch to the drawee) at my/our entire risk and responsibility and the agent or agents
(including the drawee) employed in such collection shall be considered fully as my/our agent or agents.
21) I/We here by agree that as between myself/ourselves and the Bank, cheques, bills, hundies and other
instruments shall be deemed to be paid, realized or collected only on the amount thereof coming into
the Bank's till in any office of the Bank and until then the same and any money, cheques, Bank drafts
or mandates for payment receive in respect/in lien thereof shall be at my/our risk in all respects, that
my/our liability in respect of any cheques, bills, hundies and other instruments will cease only on the
amount there of coming into the Bank's till in any office of the Bank.
- 94 -
22) I/We hereby agree that all bills, and/or documents including railway receipts, bills of lading and documents
of title to goods which I/we may from time to time hand you for purchase or discount or against which
you make (me/us) advances and the goods, government securities and shares thereby represented
and the proceeds thereof are to be held by you as a continuing security for the payment on demand
of the said bills so purchased handed over or discounted and of all advances, banking accommodation
and /or expenses which you may make, afford or incur to or for me / us in connection therewith and all
other liabilities to you, present and future, and you are to be at liberty to exercise all my/our rights (if
any) as unpaid sellers of the said goods, government securities and shares, and without further
reference to me/us to sell, insure, wharehouse, or otherwise deal with the said goods or to sell or to
deal with the Government securities and shares as though you are the absolute owners thereof and
you are expressly authorized by me/us to refuse to deliver goods covered by the bills (whatever be
their tenor) Except against payment. I/We agree that your accounts of sale and accounts of your
expenses shall be accepted by me/us as conclusive evidence of the correctness of the matters therein
written and I/we declare that this Agreement and your rights hereunder shall in no way be affected by
my/our death or any change in my/our name, style or constitution.
23) I/We further agree that you and your agents shall be exempt from all liabilities for any loss or damage
due to deterioration of goods or loss howsoever caused to me/us arising from any telegraphic or cable
error, irregularity, delay, mistake, omission or misinterpretation. or otherwise howsoever.
24) I/We agree that the goods represented by documents pledged hereby will not be taken delivery of by
me/us, the consignee or his/my/our representative (s) in the absence of the Railway or other similar
receipts of the carriers, evidencing title to goods, without the prior written permission of the Bank.
25) I/We further agree and undertake to indemnify the Bank for any loss in case the goods are not taken
delivery of by me/us or the consignee within days of the arrival at the notified station and the railway
authorities disposing off the same being essential goods consigned to the notified stations under the
rules and regulations of the railways from time to time.
26) I/We do hereby declare and state that all the information and data furnished by me / us for availing the
credit facility are true and correct. I/We unconditionally and irrevocably agree and give my / our
consent for disclosure of all/any of the information and data relating to us by the Bank including the
credit facility availed/to be availed to Credit Information Bureau (India) Ltd., and/or any other agency/
Reserve Bank of India/and or any other person or agency entitled to such information. I/We further
unconditionally and irrevocably agree that in case I / We commit(s) default in repayment of the credit
facility granted, the Bank and /or the Reserve Bank of India/CIBIL or any other agency authorized to
collect such information will have an unqualified right to disclose or publish my / our name(s) and
photographs as defaulters in such manner and through such medium as the Bank or the Reserve
Bank of India or CIBIL or any other agency authorized in their absolute discretion may think fit.
Yours faithfully
Borrowers Name & Address

(Give full particulars)
Witness __________________________
Place : ___________________________
Address __________________________
- 95 -
Partial deliveries
AB 15
Place:_________________
Date:_________________
To
The Manager
Andhra Bank
_____________________
Dear Sir,
Please purchase/discount the following bills and credit the proceeds to my/our___________________
account with you.
Yours faithfully,
(Signature)
Particulars of bills:
Date Name of the Drawee Place Amount Particulars of Special instructions

documents if any
- 96 -
AB 16
BOARD RESOLUTION
(TO BE OBTAINED ON COMPANY'S LETTER HEAD)
CHAIRPERSON OF MEETING :
DATE OF MEETING :
PLACE OF MEETING :
TIME OF MEETING :
The Chairperson informed the Board that the company may borrow money for the business operation of
the Company up to ` ...................... Lacs (Rupees ................................................................................
...................................................................................................... Lacs only) from Andhra Bank, which is
within the limits prescribed under section 180 of Companies Act, 2013. The approval of the Board is to be
accorded in accordance with section 179(3) of Companies Act, 2013.
Nature of facility Limit (Maximum amount remaining unpaid at any one time)
After Discussion the following resolution was passed unanimously: -
"RESOLVED THAT pursuant to Section 179 (3) and other applicable provisions, if any, of the Companies
Act, 2013 or subject to such modification and re-enactment thereof, consent of the Board of directors of
the Company be and is hereby accorded to avail loan up to ` .................................. Lacs
(Rupees ................................................................................ .......................................................
................................................................................... Lacs only) from M/s Andhra Bank as proposed/
"RESOLVED FURTHER THAT for securing the said loan/facilities, the company's property(s) / asset(s)
situated at ....................................... (description of property) may be given as security to Andhra Bank.
"RESOLVED FURTHER THAT Mr./Mrs ................................................................ (DIN: ..........................)

and Mr/Mrs. ................................................................ (DIN: ..........................), Directors of the Company
either jointly or severally be and are hereby authorized to do all such other things, acts and deeds etc.
including execution of documents and creation of security/ charge on the company's assets as may be
required to comply with all formalities in this regard.
"AND RESOLVED THAT the seal of the Company should be affixed on all such documents in respect the
above said loan in presence of Mr. .............................................................. (DIN: ..........................) and
Mr. .............................................................. (DIN: ..........................). (Mention the authorisation in consonance
with the Articles of the Company)"
Dated:
(Signature)
Chairperson / Company Secretary/
Director authorised by the Board
- 97 -
(To be stamped as an agreement as applicable in the State)
AB 17
HIRE PURCHASE AGREEMENT WITH FINANCIERS
Andhra Bank
THIS AGREEMENT made at ..............................on this ..................... day of ..................................... 20....
in favour of ANDHRA BANK, a Banking Company, constituted under the Banking Companies (Acquisition &
Transfer of Undertakings) Act, 1980, having its Head Office at 5-9-11, Dr. Pattabhi Bhawan, Secretariat
Road, Saifabad, Hyderabad -500004 and among others, a Branch at hereinafter called
the BANK which expression shall, wherever the context so admits or requires, mean and include its attorney,
successors and assigns
by
Shri / Smt. .....................................................................S/o D/o W/o .........................................................
aged ............. years residing at............................................................................................................
................................................
(OR)
M/s ..............................................................................................................................................................
Situated at................................................................................................................................................
................................................................................................ represented By .........................................
hereinafter referred to as the Borrower(s), which expression shall wherever the context so admits mean
and include his/her/their heirs, executors, administrators, assigns and legal representatives.
WHEREAS the Borrower(s) has/have been doing the business of a Financing having office at ....................
.................................................................... and as such enter into hire purchase transactions of all kinds;
AND WHEREAS the Borrower(s) requested the Bank to provide him/them financial assistance required by
him/them in such business;
AND WHEREAS the Borrower(s) in the course of his/their business receive(s) notes, bills, hundies, Cheques
and hire purchase agreements and other declarations and forms and acquire rights to motor vehicles or
other goods;
AND WHEREAS the Borrower(s) agreed to deliver to the Bank all such documents duly endorsed or otherwise
transferring all his/their beneficial interest in such transaction evidenced by such Documents, and on the
basis of such documents and on his/their personal liability and responsibility and on the responsibility of
the several sureties and guarantors who are signatories to such hire purchase transactions requested the
Bank to lend monies from time to time and the Bank agreed to the same.
NOW THIS AGREEMENT WITNESSETH AS FOLLOWS:
1. The Bank doth hereby agree to provide overdraft facilities to the Borrower(s) up to a limit of
` ................................................. and the Borrowers undertake/s to obtain advances from the Bank
on deposit and security of all the proper documents secured by him/them from the hire purchases
and their sureties and guarantors. The Borrower(s) doth/do hereby covenant to repay to the Bank all
the monies received from the Bank from time to time according to the terms of all or each of such
advances together with interest reserved.
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2. It is to be distinctly understood that at any time the Bank shall have the fullest and ample discretion
and power to top further advances and call upon the Borrower(s) to settle forthwith his/their account
with the Bank, pay all the monies due to the Bank on account of Principal interest and other charges
due either according to custom or according to law or contract.
3. That the Bank shall not be required to make advances under this agreement to an amount at any one
time exceeding, with interest and other charges therein, the sum of ` _____________
(Rupees_______________ ___________________________________ only) and shall not be
required to make advances exceeding with interest and other charges thereon ________% p.a. of
the value of such securities on the date of delivery of such securities (not being in excess of the
normal value) of the goods, etc, held for the time being under security, this percentage being subject
to alteration at the discretion of the Bank after prior notice; but within the said limits, the Bank may,
from time to time, until the account/s shall be closed by such demand and payment thereof as provided
hereunder, or by adjustment in the usual course of business, make such advances in the Banks
discretion as the Borrower(s) may request, on security as aforesaid of the securities, etc.
4. As security for the due repayment of monies due or becoming due from the Borrower(s) to the Bank,
the Borrower(s) doth /do hereby charge all the assets belonging to him/them and delivered over by
him/them to the Bank from time to time.
5. The Borrower(s) doth/do hereby agree and covenant with the Bank that he/they, the Borrower(s) will
deliver to the Bank only genuine securities received by him/them in the course of his/their business
from bonafide parties. The Borrower(s) undertake/s that he/they will do only genuine business, and
that all documents are obtained by him/them in the usual course of such business, and that he/they
will deliver and endorse each and every one of such documents in favour of the Bank duly assigned,
endorsed transferred so as to enable the Bank by itself to receive and realize all monies due under
such documents with power on the part of the Bank to enforce such securities granted by the
Borrowers constituents without the necessity of the Bank being obliged to call upon or wait on the
Borrower(s) to do the needful.
6. Securities for the purpose of this agreement mean and include hire purchase agreements, promissory
notes, bills, hundies, cheques and other security letter, documents and the security of various motor
vehicles which the Borrower(s) acquire/s under the said agreements taken usually in such business,
more specifically mentioned in the schedule to this agreement . The borrower hereby assigns all his
right, title and interest in all the said securities to the Bank, to enable the Bank to enforce its rights
thereunder.
7. In the event of the Borrower(s) committing default in payment of the said dues within the time mentioned
by the Bank, the Bank shall have fullest power to realize in such manner as it may deem fit, such
assets including those covered by the floating charge and for the said purpose the Bank is hereby
constituted as agent of the Borrower(s) by the Borrower(s) for the aforesaid purpose and such power
shall include power to file suit, waive claims, recover monies, insolvency proceeding, liquidation
proceedings, writ petitions and petitions to the Governmental authorities, execute such decrees or
orders or awards and for that purpose shall have power to sign all papers, plaints, pleadings, affidavits,
original or miscellaneous petitions, execution petitions, claim cases, statements and every other
proceedings known, required to be taken or made according to law, and on realisation of all or any of
such assets the Bank shall have power to withdraw moneys from Courts, authorities and Tribunals
and to appropriate the net realizations towards the moneys due to them on account of interest,
charges and principal. In case of any deficiency the Borrower(s) doth/do hereby agree and covenant
with the Bank to pay to the Bank such deficiency together with interest at rates given notice of or fixed
from time to time by the Bank. The Bank shall have all the powers of the Borrower(s) as his/their
- 99 -
agents before Police authorities and Road Transport Registration Authorities throughout India. In
exercise of such powers, the Bank shall also be entitled to seize, sell or otherwise dispose off the
vehicles. This power shall be irrevocable so long as any money remains due to the Bank by the
Borrower(s). The said power shall include power to incur any expenses whatever concerning the said
securities and any expenditure so incurred by the Bank at its discretion shall not be liable to be
questioned by the Borrower(s) and the Borrower(s) also hereby declare/s that the statement of Bank
about such expenses will not be disputed by him/them.
8. It is specifically agreed and understood between the parties hereto that notwithstanding the provisions
of powers herein given to the Bank, the Bank shall not be bound to or expected to take or exercise all
the powers reserved unto in this indenture, and such powers as are provided herein are only for the
protection of the interest of the Bank.
i) It is also hereby agreed that the Bank shall not be liable or responsible to the borrowers if any
of the securities lodged with the Bank get barred by time or lost for any reason whatsoever.
ii) It is also further agreed that all notices due to be issued to the hirer/s of maker/s or negotiable
instruments or other securities lodged with the Bank, under law or custom shall be issued by the
Borrower(s) on behalf of the Bank as its Agents and the fact of the Bank not having issued such
notices or its not taking steps to enforce payment of bills or promissory notes or other securities
endorsed by the Borrower(s) in its favour as security or in full or part adjustment of the Borrowers
account with the Bank, shall in no way release the Borrower(s) from his/their liability thereon
and the Borrower(s) further agree/s that it shall be necessary for the Bank to issue any notice
of endorsement, transfer or dishonor of any securities to any of the parties concerned.
9. This agreement and every term therof shall apply to all the transactions which the Borrower(s) may
enter into with the Bank from the date of these presents.
10. All the remedies which the Borrower(s) has /have or shall have as against his/ their debtors shall be
available to the Bank and the Bank shall be entitled to exercise all his/their rights against his/their
sureties and guarantors.
11. The Borrower shall pay interest on the loan or the balance thereof due from time to time at the
applicable AB Base Rate .................... % plus spread of......................% presently at.....................%
p.a. with monthly/quarterly / half yearly / yearly or other rests,. and such interest shall be calculated
on the daily balance/s of the said account/s and shall be charged on the Balance in the account and
shall be payable every month. If interest is not paid, the same shall become compounded with the
principal balance outstanding in the account, on such balance and on such successive balances.
The actual lending rate is subject to review and variation from time to time as per RBI guidelines and
due to any changes in the financials of the borrower. Base Rate shall be subject to change from time
to time. The Base Rate notified by the Bank on its Website and notice board of the Bank/branch shall
be conclusive notice to the borrower in respect of change of Base Rate.
12. The Borrower(s) also agree/s that in case he/she/they prepay/s the loan/swap before the period
stipulated at the time of sanction, he/she/they shall be liable to pay prepayment charges at the rate
of ................. % per annum on the amount so prepaid by him/her/them.
13. The Borrower(s) hereby specifically agree/s that he/she/they waive/s notice of variation of interest
they further agree/s that such variation in the rate of interest notified in the notice board in the bank
premises shall be sufficient notice to him/her/them and that he/she/they agree/s to pay interest at the
rate notified in the notice Board of the Bank from time to time until all dues are cleared in full.
- 100 -
14. In the event of borrowers defaulting in any of the covenants/payment of any one installment or in
regularizing or in clearing the amount as per the terms agreed upon the borrower shall pay additional
interest at higher of 2% per annum or such other rates as may be prescribed by the Bank over and
above the rate of interest charged on the loan/advance from the date of such default till regularization
or clearing the loan amount in full as the case may be
15. That this agreement shall operate as a continuing security for the ultimate balance with the interest
and other charges thereon that may become payable to the Bank upon the said cash credit account/
s opened/ to be opened as aforesaid, the said account/s is /are not to be closed for the purpose of
this security and the security is not to be considered exhausted merely by reason of the said account/
s being brought to credit at any time or from time to time.
16. In addition, the Borrower(s) doth/do hereby agree to create a floating charge on all his / their properties
wherever situate whether movable or immovable, tangible or intangible including book debts and
every other account and over all actionable claims due to him/them either directly or by assignment
and also over every property belonging to the Borrower(s), which are in the order and disposition of
the Borrower(s) and such floating charge shall fasten unto and in favour of the Bank ,the moment the
Bank makes demand for payment of the entire monies due to the Bank under the aforesaid transaction
or in the event of the Borrower(s) allowing any creditor or creditors to levy execution or distress
proceeding against him/them or his/their assets or properties.
17. It is hereby expressly declared that the Bank shall have the power to retain with it under any
circumstances whatever all such securities and assets and the Borrower(s) shall not be entitled to
deliver of any security, document or money so long as the monies due the Bank remain unpaid and
undischarged. All stocks and marketable securities from time to time lodged with the Bank on account
of the Borrower(s) or shall remain as security for the payment to the Bank of all monies including
interest and expenses from time to time owing by the Borrower(s) or for which the Borrower(s) may be
liable to the Bank on any account whatsoever, and in default of payment of such money or for
reimbursement therefor, the Bank is hereby authorized to sell such stock and collect the money due
to them without giving notice and in any way the Bank may consider it expedient.
18. The Borrower(s) doth/do hereby agree and undertake to reimburse the Bank all costs and damages
which the Bank may incur or sustain when the Bank proceeds to enforce and realize such securities
or assets. The Bank shall have the power to appropriate all the securities provided by the Borrower/
s under these presents towards the satisfaction of any other claim which the Bank may have in any of
its Office wherever situate against the Borrower(s) as Principal/s, partner/s, agent/s/ surety/s, securities
or guarantor/s.
19. The Borrower(s) hereby undertake to execute at his/their cost all documents and writings that may
from time to time may be required to be executed by the Bank for securing the interests of the Bank
20. The Borrower(s) undertake(s) to ratify every act and deed of the Bank taken, done or executed by it
as his/their agents.
towards any other outstanding dues payable by the borrower to the bank in respect of other loan/
facilities enjoyed by him or for which he/she/they is/are liable and surplus amounts remaining if any
will be paid to the borrower.
- 101 -
discretion may think fit. The Borrower(s) is/are aware that the Bank may initiate steps to identify/
declare him/it/them as Willful Defaulter in terms of applicable Reserve Bank of India Guidelines in
case of my/our intentional default.
IN WITNESS WHEREOF the BORROWERS doth / do set his/their hand/s on the day and the year first
above written.
(Borrower(s))
Name of the Borrower(s)
SCHEDULE A
The maximum amount to be advanced by the Bank shall not exceed ................ % of the amount advanced
by the financier, excluding the interest and finance charges and the ________________ _______________
___________________________________________nor shall it exceed the following limits.
MOTOR VEHICLES :
New Vehicles (including vehicles upto ____% of the total of the old
6 months the date of the first registration, from dealers chassis price,
provided sale such vehicles have not been tax, insurance premium
the subject matter of any Hire Purchase and delivery charges
Agreement during the said period of 6 months
(Borrower(s))
- 102 -
AB 18
JOINT HINDU FAMILY LETTER
To Place : __________________
The Manager Date : __________________
Andhra Bank
______________________Branch
Dear Sir,
The Business of .................................................
Carried on as HUF Firm in the name

**Note the
name(s) of and style of M/s ......................................................
Karta(s) or
Managing at ............................................is the ancestral business of Joint Hindu family governed
by the Mitakshara law of which I/We ....................................................................... the
undersigned am/are present Karta/Managing member(s) and we, the undersigned are
the only present adult members. As the aforesaid business by the nature thereof cannot
be carried on without banking facilities, we are desirous of opening a ....................................
Current ..................................................................... account with ANDHRA BANK at its
....................................................................... Branch. I / We the members hereby declare
and undertake as under :
1. The following members viz.,

(1) ......................................................... (Karta)
(2) ......................................................... (Co Parcener / Member)
(3) .........................................................
are authorized jointly or severally to represent and sign on behalf of the said joint
family business in the manner as appear below and have full unrestricted authority
to bind all the members of the joint family however constituted from time to time.
2. In the event of the Bank acceding to our request and opening an account in the firm
name of the said joint family business, we the undersigned undertake with the
intention of binding not only the present members of the said joint family (both
adults and minors) but also all future members thereof (both adults and minors) and
ourselves personally and our respective interest in the joint family properties as well
as our separate estates.
3. Whenever, any change occurs in the managership or in the nature of the said
ancestral business, or if at any time any of us desire to give up or sever his connection
with the said ancestral business, or if we desire to close the said ancestral business,
or if any minor members of the said family attain majority or any members of our
- 103 -
family dies, to give notice thereof to the above branch of the Bank at once in writing
and that.
4. Until receipt of such notice by the above branch of the bank and whether any
provisions of the Indian Partnership Act 1932, shall apply or not, the Bank shall be
entitled to regard each of us as partners in respect of all dealings or transactions
with the Bank which may be found to be outside the scope of the said ancestral
business and that such dealings and transactions shall be binding on each of us as
such partner and our respective estates and that.
5. Notwithstanding any provisions of the Act or any change in the membership of the
said firm all acts purporting to be done on behalf of the said joint family business
before the Bank shall have received notice in the manner aforesaid, shall be binding
on the said joint family and its properties and on each of us and our respective
estates and the liability of the said firm and of each of us and of our respective
estates shall continue until all liabilities in respect of such acts shall have been
discharged.
6. PARTICULARS OF THE MINOR MEMBERS OF THE JOINT FAMILY
Name Fathers Name Date of Birth
1.
2.
Yours faithfully,
NAME OF MAJOR MEMBERS/Coparcener Kartha/Manager
(Signature)
1. 1. S/o / w/o R/o

2. 2. S/o / w/o R/o
3. 3. S/o / w/o R/o
4. 4. S/o / w/o R/o
5. 5. S/o / w/o R/o
6. 6. S/o / w/o R/o
7. 7. S/o / w/o R/o
8. 8. S/o / w/o R/o
- 104 -
AB 19
PARTNERSHIP LETTER
To
The Manager
Andhra Bank
______________________Branch
Dear Sir,
We the under mentioned partners carrying on the business as Partnership Firm in the name and
style of M/s ...................................................................................................................................................
situated at .....................................................................................................................................................
are desirous of opening a Current account and/or availing credit facility from Andhra Bank ............................
Branch for its business activity of .................................................... (brief description of the trade to be
given) and declare as under:
1. That the Partnership is constituted and defined vide Partnership deed dated ___________ and is
registered with the Registrar of Firms bearing No. (Copy enclosed).
2. In the event of the Bank acceding to our request and opening an account in the name of the firm we
undertake, with the intention of binding the firm as for the time being constitute ourselves and our
respective estates.
3. Whenever any change occurs in the said firm to give notice thereof to the above branch of the Bank
at once in writing and that.
4. Until receipt of such notice by the above branch of the Bank and notwithstanding any provisions of the
Indian Partnership Act. 1932, the bank shall be entitled to regard each of us and in case of death or
insolvency, our estate as Partners of the firm and accordingly entitled to honor our respective signatures
in the firm's name as binding the firm and each of us and our respective estates and that.
5. Notwithstanding any provisions of the said Act or any change in the membership of the firm all acts
purporting to be done on behalf of the firm before the bank shall have received notice in manner
aforesaid shall be binding on the firm and each of us and our respective estates and the liability of the
firm and of each of us and our respective estates shall continue until all liabilities in respect of such
acts shall have been discharged.
6. We are Jointly and Severally responsible for all the liabilities to the Bank under any/all account(s).
- 105 -
C. Persons authorized to operate on the account
Name
5. Mr. ................................................ 1. will sign as ..............................................
6. Mr. ................................................ 2. will sign as ..............................................
7. Mr. ................................................ 3. will sign as ..............................................
8. Mr. ................................................ 4. will sign as ..............................................
D. Minors who have been admitted to the benefits of the Partnership

Name Date of Birth
1.
2.
Yours faithfully
PARTNERS
Name & Address Signature
13. 1.
14. 2.
15. 3.
16. 4.
17. 5.
18. 6.
19. 7.
20. 8.
21. 9.
22. 10.
23. 11.
24. 12.
Date:
Place:
- 106 -
AB 20
Letter for issue of guarantee
From :
Place:
Date: .
To
The Manager
Andhra Bank
.
Dear Sir,
Ref : Request for guarantee (s)
****
I / We request you to issue a guarantee(s) on my / our firm / Company account in favor of .................
............................................................................for ` .............................. for a period of ........................
Month including restrictive clause period. If the beneficiary desires extension of the guarantee (s) for a
further period, the bank may in its own discretion, but without obligation to do so, extend for such period as
the Bank may decide, unless specifically instructed by me/us not to renew.
I / We shall furnish sufficient security as you may stipulates and hereby authorize you to debit my/our
account toward bank charges and margin money of ...................................................................................
The further charges that may be due as above said may also be debited to my/our account.
Yours faithfully,
SIGNATURE
- 107 -
AB 21
(to be stamped as a Guarantee)
COUNTER GUARANTEE
The indenture of counter guarantee executed on ________________day of ___________________
by Mr./Ms/M/s. _________________________________hereinafter called the executants in favour of
Andhra Bank having its Head Office at Dr. Pattabhi Bhavan, 5-9-11, Saifabad, Hyderabad - 500 004, and
one of its Branches at ........................................................... their assigns and administrators.
In consideration of your having at our request / at the request of M/s. _________________________,
executed or agreed to execute guarantee/s in favour of M/s. ____________________________________
or such others as may be required from time to time, up to a limit of `______________ outstanding at any
time, we undertake and agree with you, your successors and assigns as follows :
1. i) To keep a sum of `______________ under fixed deposit;

ii) To deposit title deeds of ______________________ with an intent to secure the
repayment to the Bank
iii) To keep securities lodged, Quoted shares with you, towards security for any monies
that you may be called upon to pay under the aforesaid guarantee/s furnished by
you, which you may cancel if necessary, and adjust the proceeds and / or realize
against the securities.
2. To keep you fully indemnified and saved harmless in respect of each and every obligation
and liability undertaken / incurred by you (whether directly or indirectly) under the said
guarantee/s or in renewals thereof from time to time, or otherwise howsoever.
3. To pay to you on demand all sums of money as you may pay to the beneficiary under the
Guarantee/s issued by you, with interest thereon at .............. percent above Base Rate with a minimum
of .................... percent per annum with monthly / quarterly rest from the date on which you so pay
until repayment by us. The reasonableness or propriety of any such payment shall not be questioned
and shall be binding on us.
4. To pay to you and demand all costs, charges and expenses (including the legal costs between attorney
and client) paid or incurred by you in any way concerning the guarantee/s and your obligations and
liability thereunder and this counter guarantee and your rights hereunder.
5. To indemnify you against all loss or damage in the event of any dispute arising with respect to the
obligations under this guarantee from my heirs, executors and administrators, successors and assigns.
6. To authorize you to debit from my / our account, the amounts due the outstanding.
7. This agreement shall be binding on us and our heirs, executors and administrators / successors and
assigns and shall continue to be valid and binding as irrevocable until you stand discharged from the
guarantee/s executed by you, or until such time as we procure for you the return or discharge of the
aforesaid guarantee/s renew thereof.
Place
Date : Executant/s
Witnesses :
1) _____________________________ 1) For
2) _____________________________ Managing Partner
3) _____________________________ 2) (Guarantor)
- 108 -
AB 22 (CHG-1)
FORM NO. CHG. 1 Form for registration of creation, modification

[Pursuant to section 77, 78 of charge (other than those related to
and 79 and pursuant to Section 384 debentures) including particulars of
read with 77, 78 and 79 of the modification of charge by Asset
Companies Act, 2013 and Rule 3 (1) Reconstruction Company in terms of
of the Companies (Registration of Securitization and Reconstruction of
Charges) Rules 2014] Financial Assets and Enforcement of
Securities Interest Act, 2002 (SARFAESI)
Form Language English Hindi
Refer the instruction kit for filing the form.

1. (a) *Corporate identity number (CIN) or foreign company
registration number (FCRN) of the company
(b) Global Location Number (GLN) of company
2. (a) Name of the company
(b) Address of the registered office or principal place of business in India of the company
(c) email id of the company
3. (a) *This form is for registration of Creation of charge ? Modification of charge

(b) Charge ID of the charge to be modified.
(c) SRN of form INC.28
4. *Whether the applicant is ? The company The charge holder

5. Whether the form is being filed
(i) *Beyond 30 days but within 300 days from the date of creation or modification ? Yes No
(ii) If yes, give reasons for the delay and mention the duration of delay
(iii) Beyond 300 days Yes No

(if yes, an application will be required to be made to Central Government for extension of further time)
6. (a) Whether charge is modified in favour of asset reconstruction Yes No

company (ARC) or assignee
(b) Whether charge holder is authorised to assign the charge Yes No

as per the charge agreement
- 109 -
7. (a) *Date of the instrument creating or modifying the charge
(b) *Nature, description and brief particulars of the instrument(s) creating or modifying the charge
(c) *Whether charge is created or modified outside India ? Yes No

8. Type of charge *
(a) A charge on
Uncalled share capital Calls made but not paid Immovable property or any interest therein
Movable property Floating charge Motor Vehicle (Hypothecation)
(not being pledge)
Any property for securing Goodwill Patent
the issue of secured deposits
Licence under a patent Trade mark Copyright
Book debts Ship or any share in a ship Solely of Property situated outside India
Others
(b) If others, specify
9. (a) *Whether consortium finance is involved Yes No

If Yes, enter Lead Banker's name
(b) *Whether joint charge is involved Yes No

(c) *Number of charge holder(s)
(Note: If more than one charge holder involved then attach the names of charge holders, details of
extent to the charge, particulars of property charged, amount secured)
10. Particulars of the charge holder (in case charge is modified in favour of ARC or assignee, enter the
particulars of ARC or assignee)
Category
If others, specify
Get List of Charge Holders

Name
In case of others, specify
CIN, if applicable Pre-fill
*Name
Address *Line I
Line II
*City
*State * ISO country code
Country
*Pin code
*e-mail id
- 110 -
11. (a) *Amount secured by the charge (in Rs.)
(In case the amount is in foreign currency, rupee equivalent to be stated)
(In case of modification of charge, enter the amount secured by the charge after such modification)
(b) Amount secured by the charge in words
(c) In case amount secured by the charge is in foreign currency, mention details
12. Brief particulars of the principal terms and conditions and extent and operation of the charge
(a) *Rate of interest
(b) *Terms of repayment
(c) *Margin
(d) *Extent and operation of the charge

(e) Others
13. In case of acquisition of property, subjected to charge, furnish the details relating to the existing
charge on the property so acquired
(a) Date of instrument creating or evidencing the charge
(b) Description of the instrument creating or evidencing the charge
- 111 -
(c) Date of acquisition of the property
(d) Amount of the charge (in Rs.)
(e) Particulars of the property charged
14. *Short particulars of the property or asset(s) charged (including complete address and location
of the property)
(i)
(ii)
(iii)
(iv)
(v)
(vi)
(vii)
(viii)
(ix)
(x)
15. (a) *Whether any of the property or interest therein under reference
is not registered in the name of the company Yes No
(b) If yes, name of the person in whose name it is registered
16. Date of creation/last modification prior to the present modification

17. Particulars of the present modification (please ensure that the correct particulars are entered as the
same shall be displayed in the certificate of modification of charge)
Attachments
(1) *Instrument(s) of creation or modification of charge;
(2) Instrument(s) evidencing creation or modification of charge
in case of acquisition of property which is already subject to
charge together with the instrument evidencing such acquisitions;
(3) Particulars of all joint charge holders;
(4) Optional attachments, if any
- 112 -
Declaration
I am authorized by the Board of Directors of the Company vide resolution number
*dated to sign this form and declare that all the requirements of Companies Act, 2013 and
the rules made thereunder in respect of the subject matter of this form and matters incidental thereto have
been complied with. I also declare that all the information given herein above is true, correct and complete
and as per the attached charge instrument(s) or document(s) and nothing material has been suppressed.
A copy of the attached charge instrument(s) or document(s) is / are available at the registered office or
principal place of business in India of the company.
I further declare that :
(a) the delay in filing the particulars of creation/modification, was accidental or due to inadvertence
or some other sufficient cause and are or is not of a nature to prejudice the position of the
charge holder, shareholders or creditors of the company;
(b) no prejudice would be caused to the charge holder(s) or any other creditor(s) of the company, if
the delay is condoned;
(c) the company has not created or modified any other charge(s) whatsoever on the assets of the
company, since the creation / modification of the present charge, for which the application for
condonation of delay is being filed;
(d) the company is carrying on the business as on the date of filing this application and no proceedings
to wind-up the company have commenced or are pending against the company;
(e) there is no litigation proceedings pending before any court of law for which condonation of delay
is being filed;
(f) the company has not applied for striking off the name of the company from the register of Registrar
of Companies.
To be digitally signed by
Director or manager or secretary or CEO or CFO (In case of an Indian company) DSC Box
or an authorised representative (In case of a foreign company)
Designation
DIN of the director; DIN or PAN of the manager or CEO or CFO or

authorised representative; or membership number of company secretary
Declaration
I/we confirm that the attached charge instrument(s) or document(s) is/are true copies of the original which
is/are available with the charge holder and/or assignee and all the information and particulars mentioneUbove
are derived there from are concisely and correctly stated. I/we am/are duly authorised to sign this form.
To be digitally signed by DSC Box
Charge Holder
PAN of the charge holder
- 113 -
ARC or assignee
PAN of the ARC or assignee
Designation
PAN
Note: Attention is also drawn to provisions of Section 447, section 448 and 449 of the Companies
Act, 2013 which provide for punishment for fraud, punishment for false statement and punishment
for false evidence respectively.
Modify Chefk Form Prescrutiny Submit
For office use only : Affix filing details
eForm Service request number (SRN) eForm filing date (DD/MM/YYYY)
Digital signature of the authorising officer
This e-Form is hereby registered Confirm submission
Date of signing (DD/MM/YYYY)
OR
This eForm has been taken on file maintained by the registrar of companies through electronic mode and
on the basis of statement of correctness given by the filing company.
- 114 -
AB 23 (CHG-4)
FORM NO. CHG. 4 Particulars for

[Pursuant to section 82(1) of the
Companies Act, 2013 and Rule 8 (1)
satisfaction of charge
of the Companies (Registration of
Charges) Rules 2014]
thereof
Form Language English Hindi
Refer the instruction kit for filing the form.
1. (a) *Corporate identity number (CIN) or foreign company Pre-fill

registration number (FCRN) of the company
(b) Global Location Number (GLN) of company
2. (a) Name of the company
(b) Address of the registered office or principal place of business in India of the company
(c) email id of the company
3. *This form is for registration of Satisfaction of charge
4. (a)(i) *Whether the form is being filed beyond 30 days Yes No

If yes, give reasons for the delay and mention the duration of delay
(ii) *Whether the applicant is Company Charge holder
(b) *SRN of From CHG-4 filed for satisfaction of charge
(c) *SRN of Form INC.28
5. *Whether charge is satisfied in favour of asset

reconstruction company (ARC) or assignee Yes No
*Charge creation identification (ID) Number Pre-fill
- 115 -
6. (a) Particulars of the charge holder or ARC or assignee Get list of chargeholders
*Name of chargeholder
In case of others,
CIN, if applicable Pre-fill
Name
Address
*e-mail ID
(b) Particulars of creation of original charge and subsequent modifications
(i) Charge creation date (DD/MM/YYYY)
(ii) Charge last modified date (DD/MM/YYYY)
(iii) *Final amount secured

(In case the amount is in foreign currency,
rupee equivalent to be stated) (in `.)
(iv) Amount secured by the charge in words
(v) In case amount secured by the charge is in foreign currency, mention details
7. *Date of Satisfaction of charge in full

Attachments
1. Letter of the charge holder stating that the
amount has been satisfied;
2. Order of the Central Government;
3. Optional attachment(s)
Declaration
I am authorized by the Board of Directors of the Company vide resolution No.
dated* to sign this form and declare that all the requirements of Companies Act,
2013 and the rules made thereunder in respect of the subject matter of this form and matters incidental
thereto have been complied with. I also declare that all the information given herein above is true,
correct and complete and as ner the attached charge instrument(s) or document(s) and nothing material
has been suppressed.
- 116 -
I further declare that :
1. the delay in filing the particulars of satisfaction, was accidental or due to inadvertence or some
other sufficient cause and are or is not of a nature to prejudice the position of the charge holder,
shareholders or creditors of the company;
2. no prejudice would be caused to the charge holder(s) or any other creditor(s) of the company, if
the delay is condoned;
3. the company has not created or modified any other charge(s) whatsoever on the assets of the
company, since the satisfaction of the present charge, for which the application for condonation
of delay is being filed;
4. the company is carrying on the business as on the date of filing this application and no proceedings
to wind-up the company have commenced or are pending against the company;
5. there is no litigation proceedings pending before any court of law for which condonation of delay
is being filed;
6. the company has not applied for striking off the name of the company from the register of Registrar
of Companies
Director or manager or secretary or CEO or CFO (In case of an Indian company)
or an authorised representative (In case of a foreign company)
Designation
DIN of the director; DIN or PAN of the manager or CEO or CFO or

authorised representative; or membership number of company secretary
Declaration
I/we confirm that the attached charge instrument(s) or document(s) is/are true copies of the original which
is/are available with the charge holder and/or assignee and all the information and particulars mentioned
above are derived there from are concisely and correctly stated. I/we am/are duly authorised to sign this form.

Charge Holder (financial institution or bank or debenture holder etc.)
PAN
E-mail ID
To be digitally signed by
ARC or Assignee DSC Box
PAN
E-mail ID
PAN
Designation
E-mail ID
- 117 -
Note : Attention is also drawn to provisions of Section 447, section 448 and 449 of the
Companies Act, 2013 which provide for punishment for fraud, punishment for false statement
and punishment for false evidence respectively.
Modify Chefk Form Prescrutiny Submit
For office use only : Affix filing details
eForm Service request number (SRN) eForm filing date (DD/MM/YYYY)
Digital signature of the authorising officer
This e-Form is hereby registered Confirm submission
Date of signing (DD/MM/YYYY)
OR
This eForm has been taken on file maintained by the registrar of companies through electronic mode and
on the basis of statement of correctness given by the filing company.
- 118 -
AB 24
Letter of authority for payment of money where pronote is signed by
more persons than one
To
The Manager
Andhra Bank
............................................................
Dear Sir,
With reference to the loan document for ` ............................. dated ............................. on account
of Sri/Ms ............................................................................... and myself, kindly pay the amount there of to
.................................................................................................
Yours faithfully,
Place: (Signature)
Date:
AB 25
APPLICATION CUM TAKE DELIVERY LETTER
Andhra Bank
PLACE : ______________
DATE: ______________
To
The Manager
Andhra Bank
__________________
Dear Sir,
1. I/We have stored goods detailed below in bags/loose/pits in the godown belonging to
................................................... please take possession of them. I/We hereby declare that these
stocks are my/our own and I/We have not given them as security or otherwise charged them to
anybody else. I / we also declare that I / We have every right to pledge them to you.
Please grant me/us loan of ` ............................................... against them.
- 119 -
I/We shall bear all loss or damage caused to them by deterioration, theft, burglary. fire or any similar
occurrence and the Bank is not responsible for any such loss or damage.
2. The goods are stored in a godown bearing Municipal/ Panchayat Door No. and I/We hereby declare
and agree:
i) That you are at liberty to place your locks and seals on the said godown and keep the goods
contained therein under your sole custody.
ii) That I/We shall not claim joint possession or control over the goods at any time; and
iii) That you and your representatives shall have free and unrestricted access to the godowns
through my/our premises at all times for the purpose of inspection of good or Sampling or for
removal of goods or otherwise and I/We shall not raise any objection to the same.
3. The turmeric ........................ is stored in pits in Survey No. .......................... pledged to you. You
shall in no way be responsible for the deterioration, shortage, loss or damage caused to the goods
while lying in pits from any cause whatsoever. It is clearly understood that the goods are stored in the
pits entirely at my/our risk and responsibility.
4. In respect of the goods pledged to you for advances received by me/us, and stored loose, I/We hold
myself/ourselves responsible for the correctness of the quantity and that the bank is free from all
responsibilities in that behalf. I/We further undertake to make good any shortage in the security on
demand made by the Bank either by way of additional goods or sufficient cash as determined by the
Bank. The opinion of the Bank that there is a shortage shall bind me/us.
I/We hereby undertake to insure the stocks against such risks as you may desire for
` ...................................... for the period ...................................... and if we fail to do so, you may
insure accordingly and also extend the insurance, if necessary.
Particulars Quantity Rate Value

of goods ` `
_____________________________________________________________________________________
_____________________________________________________________________________________
Date Yours faithfully,

(Signature)
- 120 -
AB 26
RENT LETTER
To
The Manager
Andhra Bank
.............................................
Dear Sir,
With reference to the advance already granted and advances to be granted in future by your Bank
to M/S ...................................................................... against goods stored in my godown
No................................................................ situated at .............................................. I hereby agree and
confirm that I have no lien on goods already pledged and to be pledged to your Bank in future and that I
have no objection and shall have no objection whatsoever hereafter to your bank having access to the
goods whenever necessary for the purpose of inspection or otherwise and also to your Banks putting its
name boards, locks, etc., on the godown or godowns containing the goods in token of your banks lien over
them.
I also hereby affirm that Andhra Bank shall have the first charge over the stocks referred to above
and pledged to them.
Yours faithfully
Place:
Date:
- 121 -
AB 27
SECURITY FOR ADVANCES & LOANS
(Letter of Lien)
To
The Manager
Andhra Bank
Dear Sir,
In consideration of any advance (including any loan, overdraft or other advance) or credit of any
nature and kind whatsoever you have allowed or may from time to time allow to us either alone or jointly
with others:
( a) All movable property of every description coming into your possession on our account or for the time
being held by you on our behalf whether alone or jointly with others in India or elsewhere (including
without prejudice to this generality any monies, bullion, deposit receipts for monies, promissory notes,
bills of exchange, hundies: bills of lading, railway receipts other documents of title to the goods, any
other negotiable or transferable instruments or securities, instruments, documents of title, Bills
accompanied with Inspection note or other documents relating to supplies made or services rendered
to Government or other authorities and mercantile documents of every description including Hire
purchase Agreements or contracts other than affecting immovable property and requiring registration
under the Acts or Laws relating to registration in India and other documents evidencing our title as
creditors or members or any Corporation, Association and Company or Syndicate in India or elsewhere)
are hereby hypothecated for and shall stand charged with, and
( B ) All marketable securities and goods coming into your possession on our account or deposited with
you or for the time being held by you on our behalf whether alone or jointly with others, are hereby
pledged for and shall stand charged with the due payment of all monies now owing or which shall at
any time hereafter be owing from us either solely or jointly with any other person or persons to the
Bank whether on balance of account or by discount or otherwise in respect of Bills of Exchange,
promissory Notes, cheques and other negotiable instruments or in any manner whatsoever and
including interest commission and all costs, charges and expenses incurred by you in connection
thereof, and we agree and undertake that in the event of our failure to maintain the margin on the
said movable property, marketable securities and good in the manner hereinafter provided or failing
repayment on demand to you by us of the said amount with interest, costs, charges and expenses as
aforesaid, you shall be entitled, but not bound, to sell or otherwise dispose of all or any of the said
movable property, marketable securities and goods by public auction or private contract in such
manner and up on such terms and subject to such conditions as you may think fit without issuing any
notice of sale to us, which notice we hereby waive, or without obtaining our consent, the proceeds of
such sale or disposal shall be applied first in payment of all costs, charges and expenses of and
incidental to such sale or disposal and the enforcement of the pledge and charge in your favor
hereby created. Secondly, in repaying the amounts due to you on any account whatsoever by us with
interest as aforesaid and all costs, charges and expenses incurred by you in relation thereto not
otherwise met including loss in exchange (If any) and all other debts and monies howsoever due to
you by us and lastly in payment to us of the surplus, if any thereafter remaining, declaring as it is
hereby expressly provided, agreed and declared that this shall be continuing security to cover the
amount of any advance or credit which you have allowed to us or may from time to time allow us with
interest, costs, charges and expenses and all other debts and monies due as aforesaid and that you
shall not be responsible for any loss damage or damage depreciation which the said movable property,
- 122 -
marketable securities and goods may suffer whilst in your possession or in course of realization or
disposal hereunder. We ourselves shall bear all loss or damages caused to them by theft or burglary
or any similar occurrence and the Bank is not responsible for any such loss or damage. We undertake
to pay the rent of the godown to the owner and see that the Bank is not called upon to pay the same.
And in case the amount of the proceeds of such sale or disposal falling short, we hold ourselves
liable and agree to make good the deficit to you. And we undertake to maintain in favor of the Bank a
margin by payment in cash so that the amount of the advance of credit (inclusive of all such interest,
costs, charges and expenses as aforesaid) be not more than .................................................. percent
of the market value of the said movable property, marketable securities and goods for the being. And
we agree that the Banks decision as to the market value of the said movable property, marketable
security and goods for the time being. And we agree that the Banks decision as to the market value
of the said movable property marketable security and goods shall in all cases be final and binding
upon us.
We hereby further agree that the Bank may refuse in their discretion to deliver any portion of the
movables, marketable securities and goods unless all the monies owing by us to the Bank on any account
whatsoever are paid by us.
We shall at all time and from time to time insure and keep insured for the full value against fire and all
other risks as required by the Bank with Insurance Companies approved by the Bank all or any of the said
movable property, marketable securities and goods which in the opinion of the Bank shall require such
insurance and to deliver to the Bank the policy or policies of insurance duly transferred in favor of the Bank
failing which the Bank shall be entitled to insure the same at our expenses and on our account and we shall
repay to the bank on demand all sums of money paid by the bank for the purpose and such monies shall for
the purpose of the security be deemed to form part of any such advance of credit carrying interest as
aforesaid.
Any other or further writing required to give validity to or to carry into effect this arrangement or to
complete the transfer or vesting of any of the said movable property, marketable securities and goods in
you or to be ensured to you the full benefit and advantage of the securities and any other or further stamp
duties requisite to that purpose, will respectively be signed and paid by us on demand.
We further declare that we have full right to pledge the securities and goods which have been delivered
to you and hereby undertake to deliver to you all such securities and goods over which we have complete
right to pledge and further declare that the securities and goods so pledged are not subject to any
encumbrance whatever.
For the words We Us & Our herein, there shall be deemed to be substituted the words I Me
&My respectively as and when occasion may require.
Yours faithfully,
Place: Signature _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
Date:
- 123 -
AB 28A
Proforma of Application for Advance Against Term Deposits
To,
The Manager, Place .............................
Andhra Bank,
__________________ Date ...............................
Dear Sir,
1. I / We request you to grant a Loan / Overdraft of ` ________________ to me / us against the under
mentioned deposit(s) @ ___________ % interest keeping a minimum margin of _________ % as per
Banks rules for the purpose of ** ____________________. The relative deposit Receipt(s) / Pass Book(s)
duly discharged by me/us is/are enclosed.
Particulars of the Deposit(s)

Sl. Present
No. Nature of Name(s) of the Amount Due
Number Date Value
Deposit Depositor(s) ` Date
`
2. You are at liberty to adjust the said Loan / Overdraft from the proceeds of the above Deposit(s) and
the renewals thereof at any time without any reference to me/us and until payment you have a lien on
the said deposit(s) and the monies due thereunder.
3. You are at liberty to exercise lien on the above deposit(s) for all monies now owing or will at any time
be owing by me/us any manner whatsoever.
4. Interest payable hereafter on the above deposit(s) may be credited to the said Loan/Overdraft.
5. You are at liberty to cancel the above deposit(s) before the due date at your discretion to adjust the
said Loan/Overdraft Account according to the rules of the bank from time to time.
6. I/We hereby declare that the above deposit(s) is/are free from any encumbrances.
7. I/We hereby authorise you to make payment of the said Loan / Overdraft to _____________________
- 124 -
8. The above deposit(s) is/are in the name of Mr./Mrs. _________________________________________
____________________ who is a minor. I am the guardian being his / her father / mother / appointed
by court. The loan is required for the benefits of the said Minor.
**State whether for personal expenses/

business / investment / benefits for
Minor Depositor(s)
Yours faithfully
[SIGNATURE(S)]
Address(es) Name(s) ...................................................

.................................................................
Address(es) ..............................................
.................................................................
_____________________________________________________________________________________
FOR OFFICE USE

Amount of Advance that can be allowed is ____________________________
The lien on deposit is noted in the deposit register.
Date : ________________________ Clerk
The Signature(s) / Photograph(s) of the Depositor(s) is/are verified.
Date : _________________ Departmental Officer
Remarks :
Date : _________________ Sanctioning Authority
- 125 -
AB 28 B
Proforma of Letter of Request for Additional advance under loan against term deposit
To,
Andhra Bank,
__________________ Date ...............................
Dear Sir,
Re : My / Our Loan A/c. No. ................................. date ......................... for ` ...............................
against my / our ........................................................ Deposit A/c No. ............................................................
for ` ...........................................
Further to my/our application dated .............................................. for loan against my / our deposit
under Reference. I / We request you to grant me / us a further loan of ` .....................................................
subject to Banks Rules. All the terms and conditions agreed to by me/us in my / our application
dated ................................. hold good for the additional loan amount to be granted by you now.
Yours faithfully,
1........................................................
2........................................................
Full Name(s) ...............................................
Address(es) ................................................
Balance in the Deposit A/c. ` ......................................................
Balance in the Loan A/c. ` .........................................................
Maximum amount of Loan that can be allowed `..................................
Date : ................................. Clerk

The Signature(s) / Photograph(s) of the Depositor(s) is / are verified.
Date : .............................. Departmental Officer
Remarks :
Date : ............................... Sanctioning Authority
- 126 -
AB 28 C
Proforma of letter to be obtained from depositor(s) while allowing advances against

term deposit to third parties or accepting term deposits as collateral security
To,
Andhra Bank,
__________________ Date ...............................
Sir,
1. a) I / We request you to grant a demand loan / overdraft of Rs............................ against the security
of my / our under mentioned deposit(s) to .................................... as per Banks rules. The
relative deposit receipt(s) / pass book(s) duly discharged by me / us is / are enclosed.
b) I / We request you to accept the deposits towards Margin Money / Collateral Security to the
advance to be sanctioned to me / us or to ...........................................................
Particulars of the Deposit(s)
Sl. Present
No. Nature of Name(s) of the Amount Due
Number Date Value
Deposit Depositor(s) ` Date
`
2. I / We hereby declare that the above deposit(s) is / are free from encumbrances.
3. You are at liberty to adjust the said loan / overdraft sanctioned from the proceed(s) of the above
deposit(s) and the renewals thereof at any time without any reference to me / us and until payment
you have a lien on the said deposit(s) and the monies due thereunder.
4. You are at liberty to cancel the above deposit(s) before the due date(s) at your discretion to adjust the
said loan / overdraft account in accordance with the rules of the Bank from time to time.
5. The above mentioned deposit(s) is / are to be held by you as security for all monies now owing or will
at any time be owing by me / us or ................................................ in any manner whatsoever.
Date : ............................... Signature(s) of the Depositor(s)

____________________________________________________________________________________
FOR OFFICE USE
The signature(s) / Photograph(s) of the depositor(s) is / are verified. The outstanding balance
in ...................... deposit amount(s) is Rs...................................
Date : .................................... Departmental Officer
Recommendations
Date : ............................. Appraising Authority
Order of Sanctioning Authority
Date : Signature
- 127 -
AB 28 D
APPLICATION FOR ADVANCE AGAINST TERM DEPOSITS OF THIRD PARTIES

To,
The Manager,
Andhra Bank,
__________________
Sir,
I / We request you to sanction me / us a Demand Loan / Overdraft of `............................................
(Rupees ............................................................................................................................) against the
following term deposit(s). I / We submit my / our business particulars and other details below for your kind
consideration.
1 Full Name and Address of the

Applicant
2 Nature of the business / activity /

profession
3 Constitution
4 Name(s) and address(es) of the

Proprietor(s) / Co-parceners /
Partners / Directors
5 Purpose of the advance
6 Particulars of the term deposits against which the advance is sought.
Present
Sl. Nature of Name(s) of the Amount Due
Number Date Value
No. Deposit Depositor(s) ` Date
`
7 State the nature of relationship,

if any, between the applicant and
the depositor(s).
8. State the manner in which the

advance is proposed to be
repaid.
The particulars given above are ture and correct. I / We agree to abide by Banks rules.
Date : ................................... Signature(s) of the Applicant(s)
- 128 -
AB 29
LETTER OF AUTHORITY
FOR GIVING ADVANCES TO ONE OF THE JOINT HOLDERS
To
The Manager,
Andhra Bank,
________________________
Dear Sir,
We the undersigned who hold the fixed deposit receipt No. _________________________dated
For the sum of ` ______________________________________ Jointly in our favour, hereby authorize
Sri _______________________________________________________________________, one of the
joint depositors amongst us to pledge the said fixed deposit receipt and borrow the loan against the same
after executing such documents of loan as are prescribed for the said purpose. We all have signed the said
deposit receipt as duly discharged to enable its lodgment with you. You shall be at liberty to adjust or
otherwise deal with the proceeds of the said receipt or any other fixed deposit issued in renewal for the
recovery or discharge of the loan granted by you against the deposit receipt to the aforesaid person
without any reference to us whatsoever.
Yours faithfully,
Signatures of all the joint depositors including

the borrower
AB 30
To Date : ___________
The Manager,
Andhra Bank,
_________________________
Dear Sir,
I/We hereby enclose a Demand Promissory Note for ` _______________ (Rupees __________
__________________________________________________________________________________)
Signed by me/us which is given you as security for the repayment of any overdraft which is at present
outstanding in the name of ____________________________________________________ and also for
the re-payment of any overdraft to the extent of `__________________ (Rupees __________________
__________________________________________________________________________________),
which he/she/they may avail of hereafter and the said pronote is to be a security to you for the repayment
of the ultimate balance or sum remaining unpaid on the overdraft and I/We am/are to remain liable on the
pronote notwithstanding the fact that by payment made into the account of the overdraft from time to time
the overdraft may from time to time be reduced or extinguished or even that the balance of the said account
may be at credit.
Yours faithfully,
(________________________)
- 129 -
AB 31
RISK LETTER
The Manager
Andhra Bank
Dear Sir,
Re: Application for Advance against gold ornaments
With reference to my/our application of today for an advance as per your rules, against the security
of gold ornaments noted hereunder belonging to me / us. I / We authorise you to send the jewels for
valuation to your approved appraiser at my/our entire risk and responsibility. I/We will not hold your Bank
responsible for anything that may happen to the jewels during transit till they are received by you from the
appraiser.
Description of Jewels
1. Weight :
2. Grams :
3.
Place________________ Yours faithfully,
Date________________ Signature of the applicants
- 130 -
AB 32
Andhra Bank
(Government of India undertaking)
Photo or
________________________Branch
A/C No. of the
Applicant
Application for Loan against Gold Ornaments for

Agricultural / Non agricultural purposes
Applicants Name (in full)
particulars
Fathers / Husbands name (in full)
Address
Loan I request you to sanction me loan of ` _______________

amount
(Rupees _______________________________________ ) to meet the expenses relating to Crop
applied for
production / Allied agricultural activities / contingencies, (strike out which ever is not applicable)
Land / Other In case of Loan for Growing of Crop(s): I am owning / cultivating lands to the extent of _______
particulars Acres ______ cents / guntas, at __________ Villages for crop production, with the following
cropping pattern.
(In case of
loans for Season Crops grown Extent in acres
agricultural Kharif
purposes Rabi
only) (strike out which ever is not applicable)
2. In case of Loan for Activity allied to Agriculture : I am undertaking at _______________
Village __________________ activity being an activity allied to agriculture (Working capital
requirements in any)
3. Type of documentary evidence produced in support of land holding : __________________
Declarations 1. The loan amount applied for shall be utilized for the purpose mentioned above.
of the 2. The ornaments described below are here by delivered to the bank as security for the
applicants loan.
3. The ornaments pledged are my bonafide property over which I have full rights of pledge
and sale.
4. The stones, if any, studded in the ornaments are of no consequence and I do not
make any claims for reimbursement of their costs, if any of them are lost.
5. I undertake to repay the loan together with interest @ .............% p.a. with Monthly /
Quarterly rests, appraiser charges and other bank charges.
a) Repayment Commensurating with crop harvesting season or one year from date
of disbursement which ever is earlier, for the loans obtained for agricultural
purpose.
b) For allied agricultural activity repayment is as per cash flow, or one year from the
date of loan which ever is earlier.
c) Repayment with one year from the date of disbursement for non agricultural
purpose. (Strike out which ever not applicable).
- 131 -
Note : The due date for short duration crops of Kharif season is 31st March and for Rabi
season is 30th June. The due date for long duration crops is one year from the date of
advance.
6. If I fail to repay the loan, the Bank is having right to charge ____ % additional interest
or such other applicable rate as per rules in force.
7. The Bank is having right to hold and retain the ornaments, as security for any other
existing or future liability or liabilities payable by me to the bank as a borrower or as co-
obligant or as guarantor.
8. In case of failure to repay this loan or loans due from me to the Bank as borrower or as
co-obligant or guarantor the Bank is authorized to dispose of the ornaments pledged,
by public or private sale as deemed fit and appropriate the sale proceeds for adjustment
of this or such other loan or loans. I agree to repay on demand the short fall if any, on
such sale of ornaments for adjustment of the loan or loans.
9. In case of loss of gold ornaments for the reason beyond the control of the bank, the
bank shall be liable to the appraised value of the ornaments only and shall not be
liable to replace the ornaments.
Projected Cash Flow : ________________
Particulars of Gold Ornaments Pledged and Appraisers Certificate

Particulars of Gold
Appraisers Certificate with regard to fineness of the gold and value
Ornaments Pledged
S.No. Description of the Gross Weight Net Fine Total Appraisers Total value
Ornaments (in case of weight of the Weight ness in Market value per (Col. 5 x
gold coins of our Bank. in grams stones / grams crts. Value in gram Col. 8)
Assay Certificate No.) others ` ` `
in grams
(1) (2) (3) (4) (5) (6) (7) (8) (9)
The particulars mentioned in the application are true and I certify that I have weighed and valued the above listed
correct to the best of my knowledge. ornaments and I solemnly declare that the weight, purity
of the metal and value of each of the ornaments given
The description, weight, fineness and value of the gold above is correct to the best of my knowledge.
relating to the ornaments pledged by me today are in
order and I concur with the certificate of the appraiser. I further certify that the value of the stones studded if any,
in the ornaments is not included in the above value.
Date : Signature of the applicant Date : Signature of the Appraiser

I know the applicant since ____ years. His particulars
Introduction given in the application are true and correct to the best of
my knowledge.
(For Applicants who do not have account)

Accout No. Signature of the introducer
- 132 -
For Office Use Only
Recommendation for sanction of Loan against Gold Ornaments :
I confirm that I have verified the signature of the applicant / introducer.
I recommend for sanction of loan of `. _______________ (Rupees _______________________________
__________________________________________ only) being the lowest of the following FOUR amounts.
i) Amount of loan applied for `. __________________
ii) Scale of finance for the cropping pattern of the applicant.
S.No. Extent in Acres Cropping Pattern Scales of Finance Finance for the total
per acre extent of land
` `
a
b
c
Grand Total of Scale of Finance for total extent of land
iii) ____ % (applicable percentage as per guidelines issued from time to time) of appraisers
value of the ornament(s) : ` _______________________

iv) Banks Rate of Advance : ` _______________ per gram of Gold : Total ` __________________
Rate of interest Base Rate ________ % (+) Spread of _____ % p.a. with monthly / qurterly rests subject to
a minimum of ______ % p.a. till due date. Additional Interest will be levied after the due date @2% above
the normal rate or at the rates applicable as per rules in force.
Purpose of Loan : Agriculture / Non - Agriculture :
*Due Date :
A) Short duration crops : Loans disbursed in
i) Kharif season 31st March _____________ ii) Rabi Season : 30th June ___________
B) Long duration crops : One year from the date of advance i.e., ____________________________
C) For allied activities to Agriculture : As per cash flow, or one year from the date of loan whichever
is earlier.
D) For Non Agricultural Gold Loans : Repayable in one year from the date of disbursement i.e.,
________________________ (*Branch has to specify the due date invariably)
Date : Signature of the Officer
- 133 -
Sanction :
Sanctioned loan of ` _________________ (Rupees __________________________________________
__________________________________________________ only) against Gold Ornament(s) as per the
above terms and conditions.
Date : Signature of the Branch Manager
I accept the terms and conditions of sanction
Signature of the Borrower
Lodgment of the Ornament(s) in Safe Under Joint Custody :
The gross weight of the ornament(s) listed above is / are verified and lodged in the safe.
Signature of the Signature of the

Joint Custodian Officer / Cashier Joint Custodian Officer
- 134 -
AB 33
RIGHT RELINQUISHING LETTER
Place__________________
Date___________________
To
The Manager
Andhra Bank
________________
Dear Sir,
With reference to the undermentioned jewels with my initials engraved thereon they are handed
over today to Sri/Smt ................................................................................ authorizing them to pledge with
you. I request you to allow loan there against as requested by Sri/Smt ....................................................
subject to the rules of the bank. On the repayment of the loan amount and interest and other charges by
the said pledger, you may deliver the jewels to the said pledger only. I shall not raise any objection in case
the bank proceeds to sell or auction the jewels, in the event of default to repayment by the said pledger, as
I have relinquished all my rights in the said jewels in favour of the said pledger. The surplus, if any, after the
realization of the amounts due to the Bank may also be paid to the said pledger.
Particulars of Jewels
Sl.No. Particulars of Particulars of the initials Weight Approximate Value
the Jewels on the jewels
Yours faithfully
( )
- 135 -
AB 34
TRUST LETTER
DRAFT OF AGREEMENT
To
Andhra Bank
_________________________
In consideration of your agreeing to deliver to us from time to time goods or documents of title to
goods pledged to your bank as security for the payment ...........................................................................
at ...................................................... of moneys advanced or to be advanced and other banking facilities
granted or to be granted and interest thereon we undertake and agree/jointly and severally so as to bind
ourselves/and our respective heirs, Executors and administrators estates and effects as follows, viz.
a) To receive and hold the said goods and/or documents and to receive land stores and hold the goods
covered by such documents and any other goods delivered by you to us as agents for the bank until
sale and as such agents to sell the said goods. (If so required by the bank at such price or prices as
the bank may approve) and upon sale and as long as money remain due to the Bank or we are liable
to the Bank on any account or in manner to hold the sale proceeds for the bank immediately upon
receipt thereof to pay the said proceeds to the Bank without any deduction and at the same time
advising the bank of the account and the transaction in respect of which sub payment is made.
b) You shall have full authority to demand and receive from any person or persons the purchase money
of such goods or any part thereof.
c) Pending sale we undertake at your cost to insure and keep the goods insured in their full value
against such risks and with such insurers as you may require and to hold the policies on you behalf
and if required to assign and deliver the policies to you and to pay you all sums payable by the
insurers under or in respect of such policies.
d) That all sales shall be for cash and not on credit without your previous consent in writing.
e) To keep each such transaction separate from any other.
f) That you/your officers/servants and agents shall be at liberty at all times without notice to inspect the
said goods and retake possession or to demand re-delivery to you (Which we hereby undertake on
demand to give) and to remove and sell the same in such manner and upon such terms and conditions
as to price and otherwise as you may in your absolute discretion thing fit and otherwise to take
whatever steps you may consider expedient for the protection of your interest therein and enforcement
and realization of your security.
g) That the goods shall be a security to the Bank for the payment at .......................................... on
demand of all money now or at any time hereafter to become due to the bank from us whether on
current account or for money advanced to us or paid on our behalf in any account whatsoever or in
respect of bills, notes, or drafts accepted paid or discounted, on our behalf and for any our obligation
or liability to the bank and for interest, commission on any other or lawful charges or on any other
account whatsoever or manner howsoever together with all costs, charges and expenses (the legal
costs being between attorney and client) paid incurred or suffered by the bank for enforcement of its
security and realization of its dues.
- 136 -
Dated at _____________________ on this ____________________ day of 20___________
TRUE COPY
(Note to be attested)
(A DRAFT OF SEPARATE RECEIPT)
Bill No _____________________
LC No _____________________
Place _____________________
Date _____________________
To
Andhra Bank
________________
We confirm having received from you the undermentioned goods / the documents of title to the
undermentioned goods which have been pledged to you as security and are to be held and dealt with by us
under and subject to the terms and conditions of the Agreement No. ________________________
dated _______________________ 20 ____________executed by us in your favour.
Particulars of documents & goods

Yours faithfully
(Not to be attested)
TRUE COPY
- 137 -
AB 35
PERSONAL LOAN AGREEMENT

Andhra Bank
Hyderabad
AGREEMENT executed this ________________ 20____ in favour of ANDHRA BANK ______________

Hyderabad __________________ Branch (hereinafter called the Bank) by (1) Sri ____________________
Son of / Daughter of / wife of______________________ aged _______ years occupation ______________
resident of ________________________________________________________________________ and
(2) Sri _____________________________________ Son of/Daughter of/wife of __________________
aged ___________ years occupation _________________________________________________
(if there is a co-obligant) residing at ________________________________________________________
______________________________________________________.
In consideration of the Bank allowing me/us a Personal loan or `_____________ for purchase of the
article/s detailed hereunder (which expression includes all tools, fitting accessories etc and all replacements
and additions). I/We undertake to repay this loan with interest at _____% over Andhra Banks Base rate
with minimum of ____% p.a. in _____ monthly instalments of ` ____________ regularly in full satisfaction
of the loan allowed by your bank. If the instalments are not paid promptly every month-____ at any time,
extra interest thereon at 2 per cent per annum shall also be charged. It will be open to your Bank in your full
and unfettered discretion, in the case of such default, to recall immediately all overdue instalments, and
future instalments also. On such notice from you, I / We promise to pay the entire amount with interest
within 10 days from the date of such notice. The bank will be at liberty to enforce the claim as per the terms
herein noted not only against myself/ourselves, but also against my/our heirs, legal representatives,
successor in-title etc, till the amount due to you is fully paid with interest. The borrower declares that he
has not availed credit facilities for the same purpose from any other Banks and also undertakes that he
shall not avail such credit facilities for the same purpose from other banks during the currency of this
agreement.
The article for the purchase of which the amount of ` _____________ has been today advanced by
the Bank and a full description of which is noted hereunder, is hereby pledge by me/us to your Bank as
security and I/we promise to hold it on behalf of, and in trust for the Bank, till the amount due to you under
this agreement, for ` __________ executed by me/us is fully repaid. I/We promise to deliver possession
and custody of the article to you on demand failing which the Bank will be at liberty to seize the article
wherever it may be, and sell it without any notice to me/us appropriating the proceeds towards the Personal
Loan. Should any amount be still found due, I/We undertake to pay it myself /ourselves personally. While
in my/our possession (in trust for the bank as aforesaid), I/We promise to hold the article under pledge in
good, usable and marketable condition. We shall not sell, pledge or otherwise dispose of the articles in any
way which may prejudicially affect the security of the Bank. I/We promise to hold the Bank indemnified
against all lose or damage or destruction of the article/s for any cause whatsoever or by reason of any
- 138 -
claims by third parties. The bank may immediately or whenever it deems fit at its discretion without the
necessity of prior notice insure (but not obligatory on its part) the article against such risks as it deems fit
and debit to the account with such amount of the premium which shall be paid by me/us along with the
instalment falling due immediately after the insurance is made. Failing to pay the instalment falling due,
along with such premium debited, shall constitute default in prompt payment of the instalment/s for purposes
of charging extra interest, earlier referred to herein.
I / We hereby authorizes the Bank to pay the loan amount directly to the authorised dealer from whom
the I / We is are acquiring ___________________, destiny to my loan account.
I / We do hereby declare and state that all the information and data furnished by me / us for availing
the credit facility are true and correct. I / We unconditionally and irrevocably agree and give my / our
consent for disclosure of all / any of the information and data relating to us by the Bank including the Credit
facility availed / to be availed to Credit Information Bureau (India) Ltd., and / or any other agency / Reserve
Bank of India / and or any other person or agency entitled to such information. I / We further unconditionally
and irrevocably agree that in case I / We commit(s) default in repayment of the credit facility granted, the
Bank and / or the Reserve Bank of India / CIBIL or any other agency authorized to collect such information
will have an unqualified right to disclose or publish my / our name(s) and photographs as defaulters in such
manner and through such medium as the Bank or the Reserve Bank of India or CIBIL or any other agency
authorized in their absolute discretion may think fit. I / We, am / our aware that the Bank may initiate steps
to identify / declare me / us as Willful Defaulter in terms of applicable Reserve Bank of India Guidelines in
case of my / our intentional default.
Description of the Articles pledge
1)
2)
Signatures of Executants
- 139 -
AB 36
Place_____________
Date_____________
LETTER OF AUTHORISATION
To
Andhra Bank
__________________________
__________________________
Dear Sir,
Ref : Personal Loan for `_________________________
Please credit my savings Bank/Current Account with the loan amount. I hereby authorise you to debt this
account with `________________________ and pay M/s._______________________ towards the cost
of ________________ purchased from them and advise them to deliver the article (s) to me.
Yours faithfully,
Name : ___________________
Address : __________________
__________________________
AB 37
From : To :
_____________________ Andhra Bank
_____________________ _________________________
Dear Sirs,
In respect of the Personal Loan of `______applied for by Sri______________________
employed in my/our office as __________________I/We hereby undertake to deduct from his salary on
every pay-day `___________________ and remit it before the 10th of each month at my/our risk and
responsibility until the loan amount is fully adjusted. I/We also undertake to inform you changes in the
service conditions, transfers, etc, of this employee as and when they occur. You may treat this undertaking
as an irrevocable one and sanction the loan applied for by the employee named above subject to your
rules and regulations. I/We note that this loan amount of `______________ is to be repaid
in_____________ installments and that the first installment falls due on__________20_________
Yours faithfully,
Place___________
Date____________ (Signature of the Employee)
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AB 38
Andhra Bank
GODOWN CERTIFICATE DATE OF SEALING

Loan No.
Godown No.
Ledger No. Lock No. Used
Name of the Party Worth
Full Address
North
Boundaries East
Of godown South
West
Godown belonging to Muncipal No.
Situated at 1. Date of advance
Inside measurements length Ft Inches 2. Amount advanced
Of stocks (if it is Breadth Ft Inches ` @%P.a.
Loose storage) Height Ft Inches
3. Insured of `
Goods Stored 4.Name of the Company
Quantity stored _________of________ (unit wt) 5.Covernote/Policy No
Market rate ` _________per________ Value ` 6.Agency
Rate Advanced ` _______per_______ Value ` 7.Limit
8.Liability
*Risk (whether Pucca kutcha built godown)
Remarks
The Produce is as stated and the Banks Borrowers version
Lock and seal are placed on the godown.
Godown Keeper Borrower Manager
*Kutcha means timber or bamboo frame work, with wall of cadjan matting, split bamboo or lath and plaster
and roof of tiles, iron or combustible materials.
1. Whether any thatched shed, hay stocks or fuel depots are near the godown; if so, the distances
2. Whether situated in any factory, rice or ginning, if so, the distance from the boiler or press house
3. Construction of walls and roofing to be given in detail.
To be specified in case the Advance is to a sundry party.
- 141 -
RECORD OF INSPECTIONS
Date Inspected by Initials Irregularities if any
- 142 -
AB 39
(Not to be attested, Stamp duty payable as applicable in the respective states)
Andhra Bank
TERM LOAN AGREEMENT
FORM A
This Agreement made at ................................ the ................................day of ...................20........

by...................................................................................................................................... (hereinafter referred
to as the Borrower which expression shall include his/their assigns, successors in interest and legal
representatives) and ........................................................................................................... (hereinafter
referred to as the Co-obligant) in favour of Andhra Bank, a Banking Company, constituted under Banking
Companies(Acquisition and Transfer of Undertakings) Act, 1980, having its Head office at Dr.Pattabhi
Bhavan , Saifabad, Hyderabad and amongst other places a Branch Office at .......................................
(hereinafter referred to as the Bank which expression shall include its assigns and successors in interest).
WHEREAS the Borrower has applied to the Bank for a loan/advance of ....................................................
(Rupees ...................................................................................................................... only) upon the basis
of and for purposes set forth in the Borrowers application cum proposal date........................................
AND
WHEREAS it is represented and agreed that it is on the strength and faith of the assurances, Covenants
and terms herein set out that the Bank has agreed to advance the monies for which the security documents
are executed or to be executed by the borrower.
AND
WHEREAS it is necessary that the said assurances agreements, covenants and terms be specially
set out as hereafter mentioned.
Now this Agreement witnessed that in consideration of the promises and the agreement to advance
monies by the Bank, the Borrower hereby agrees, declares, undertakes and covenants as follows:
1) The borrower is aware that the said application-cum proposal constitutes the basis of this Agreement
and of the loan to be advanced by the Bank hereunder and the Borrower hereby warrants the correction
of each and every one of the representations statements and particulars therein contained and
undertakes to carry out the proposal therein set forth.
2) The borrower hereby agrees that the said advance shall be governed by and subject to the terms
contained herein as well as those contained in the other documents executed by the borrower in
favour of the bank in connection with this loan transaction.
3) The Borrower hereby expressly agrees and undertakes that the said advance shall be utilized
exclusively for the purpose and in the manner set forth in the Borrowers proposal and for no other
purpose.
4) (a) The Borrower shall repay the advance of ` ................................................... in equal monthly/
quarterly/half-yearly/yearly installments, the first of such installment to be paid
on.............................. and each subsequent installment on the corresponding date of the
succeeding month/quarter/half-year as under.
- 143 -
(b) The Borrower shall pay interest on the said advance or on the balance thereof due from time to
time at the applicable Base rate of _____________% plus/minus spread of __________%
p.a. with Monthly/quarterly/half yearly/yearly as may be fixed by the Bank, RBI, SIDBI, IDBI,
NABARD, NHB as the case may be from time to time which shall be calculated on daily balances
of the said account and shall be charged to the Account monthly/quarterly, Half yearly/yearly
and shall become part of the principal . If the same is not repaid accordingly the Borrower shall
pay 2% extra interest from the date of such default, or at the rate as may be stipulated by the
Bank on the amount outstanding for the unexpired period of term loan, in the event of premature
closure of the term loan as premium/charges.
(c ) The term loan and any loan payable by installments will be repayable by installment as stipulated
in the schedule hereunto attached. In case of default in payment of any one installment or any
part thereof or any other irregularity on the part of Borrower/s or on the happening of any of the
events as mentioned in clause below the entire balance then outstanding with interest, costs,
commissions and charges shall if the Bank so chooses at once become due and payable.
(d) That if the Borrower(s) fail(s) to maintain such margin as hereafter said or if the Borrower(s)
fail(s) or neglect(s) to repay to the Bank on demand the balance then due to the Bank or any
installment of the principal monies remaining unpaid upon the respective due date for payment
thereof, or interest accrued and remaining unpaid or any representation or statement of the
borrowers proposal being found incorrect or the Borrower(s) committing any breach or default
in the performance or observance of any terms & conditions or provisions contained in this
agreement or the Borrowers proposal or the security or any other terms/ conditions relating to
the advance; or the Borrower(s) entering into any arrangement or composition with creditors
or committing an act, the consequences of which may lead to the winding up of the Borrower(s)
or fail(s) to carry out and Events of default or perform any of his/ her/ their/ its obligations under
these presents or in the event of the Borrower(s) committing any act of insolvency or becoming
or being adjudged bankrupt or insolvent or executing any deed of agreement, composition or
in the event of any distress or execution being levied or enforced upon or against any of the
property of the Borrower(s) whether the said property shall or shall not be the subject of this
security or (whether the Borrower(s) is / are or is / are not a joint stock company) in the event
of any person, firm or company taking any step towards applying for or obtaining an order for
the appointment of a receiver of the Borrowers property or any part thereof or ( in the event
of Borrower being a joint stock company) if any person, firm or company shall apply for or
obtains an order for the winding up on the Borrower(s) or if any such order is made or any step
be taken by any person, firm or company in or towards passing any resolution to wind up the
Borrower(s) or if any such order is made or any step be taken by any person, firm or company
in or towards passing any resolution to wind up the Borrower(s) or if any such resolution be
passed which ever may first happen or any damage Occurring to the hypothecated/pledged
properties from any cause whatsoever.
(e) The Borrower(s) agree(s) to maintain sufficient balance/drawing limit his/her / their savings
Bank/Current Overdraft/Cash Credit account and hereby authorize(s) the Bank to transfer the
periodical installments towards Installments Term Loan / other loans repayable by installments
and interest / insurance and any other charges as and when they become due
5) Notwithstanding anything contra contained herein in the security documents the whole advance or
the Balance thereof outstanding at the time may be recalled by the bank by issue of a written notice
and on issue of such notice the whole advance or the balance thereof shall be payable by the
- 144 -
borrower and the bank may take such steps in its discretion to demand and recover in full or any
portion of the advance then due as and when any breach of the conditions and covenants of this
agreement is committed by the Borrower or on the happening of any of the following events:
(a) Any installment of the Principal monies remaining unpaid upon the respective due date for
payment thereof:
(b) Interest accrued and remaining unpaid:
(c) Any representation or statement of the Borrowers proposal being found incorrect or the Borrower
committing any breach or default in the performance or observance of any terms or conditions
or provisions contained in this Agreement or the Borrowers proposal or the security or any
other terms or conditions relating to the advance.
(d) The borrower entering into any arrangement or composition with its creditors or committing an
act the consequences of which may lead to the winding up of the borrower:
(e) Execution or distress or other process being enforced against or levied upon the whole or any
part of the Borrowers property whether secured to the Bank or not:
(f) Any order being made or a resolution being passed for the winding up of the Borrower (expect
for the purpose of amalgamation/reconstruction with the approval of the Bank)
(g) A receiver being appointed in respect of the whole or any part of the property of the Borrower
(h) The borrower (if and individual) or any of the partners of the Borrower (if a firm) being adjudicated
insolvent or taking advantage of any law for the relief of insolvent debtors or entering into any
arrangement or composition with his creditors or committing any act of insolvency.
(i) It being certified by an accountant or a firm of accountants appointed to the Bank (which the
Bank is entitled and authorized to do at any time) that the liabilities of the Borrower exceed its
assets or that Borrower is carrying on business at a lose:
(j) If the Borrower without the consent in writing of the Bank attempts or purports to create any
mortgage, change, pledge, hypothecation or lien or encumbrances subsequent to the security
given or already agreed to be given to the bank for the said advance:
(k) The occurrence of any event or circumstances which is prejudicial to or impairs or imperial or
Depreciates or jeopardize, imperial or depreciate or jeopardizes the security given to the Bank
(l) The occurrence of any event or circumstance which would or is likely to prejudicially or adversely
affect in any manner the capacity of the Borrower to repay the loan and:
(m) On the question whether any of the matters, events or circumstances mentioned in the sub-
clauses (a) to (i) above has happened the opinion/or decision of the Bank shall be conclusive
and binding on the borrower.
6) It is hereby expressly agreed that the Bank shall be at liberty to assign the debt and benefit under
this Agreement and the security documents to the Industrial Development Bank of India or any other
Financial Institutions as security for any refinance obtained by the Bank in respect of the loan agreed
to be advanced by the bank to the Borrower and the borrower, if and whenever required by the Bank
to do so at the borrowers own expense do and execute and join in doing and executing all such acts,
things deeds documents or assurances as the bank may require to effectuate such assignments.
The Bank may at its discretion furnish any information required by IDBI or any other financial institution.
- 145 -
7) The Borrower shall insure to the satisfaction of he Bank and keep insured all property constituting
The Banks security against fire and all other risks in a sum equivalent to its full market value with an
insurance company approved by the Bank in the joint names of the Bank and the borrower or otherwise
as the Bank may require and shall duly and punctually pay all premium and shall not do or suffer to
be done any act which may invalidate or avoid such insurance and shall deposit the insurance policy
and all cover notes, premium receipts and other documents connected therewith with the bank. Any
monies realized from such insurance shall at the option of the Bank be applied either in reinstating
the security or in repayment of the loan/advance and interest.
8) If the Borrower shall make any default in insuring and keeping insured all or any property forming The
Banks security, the Bank without prejudice to and affecting its rights under clause (7) hereof shall be
at liberty (but not bound) to insure and keep the same insured and the Borrower shall on demand
repay to the bank any amount spent by it for effecting such insurance with interest at the rate aforesaid.
9) The borrower shall, upon request to the Bank allow the Bank or any nominee, servant or agent of the
Bank to inspect the borrowers premises and plant and movable assets and borrowers books of
account for ensuring that the borrower has duly complied with the terms of the proposal, this Agreement
and/or the security documents.
10) The Borrower shall furnish the Bank with all such information as the Bank may required for its
Satisfaction as to the compliance of the terms of the proposal and this Agreement and all such
periodical reports and information at such times, in such form and containing such particulars as the
Bank may call for.
11) In case the said loan is eligible for guarantee cover under any of the Deposit Insurance and Credit
Guarantee schemes, the Borrower hereby agrees that the guarantee fee payable to Deposit Insurance
and Credit Guarantee Corporation shall be debited to the loan account.
12) Nothing contained in this agreement shall be deemed to limit or affect prejudicially the rights and
powers of the bank under security documents or at law.
13) The Borrower(s) do hereby declare and state that all the information and data furnished by them for
his / her / their consent for disclosure of all / any of the information and data relating to them by the
Bank including the Credit facility availed / to be availed to Credit Information Bureau (India) Ltd and /
or any other agency / Reserve Bank of India / and or any other person or agency entitled to such
information. The Borrower(s) further unconditionally and irrevocably agree that in case he / she /
they commit(s) default in repayment of the credit facility granted, the Bank and / or the Reserve Bank
of India / CIBIL or any other agency authorized to collect such information will have an unqualified
right to disclose or publish his / her / their nema(s) and photographs as defaulters in such manner
authorized in their absolute discretion may think fit. The borrower(s) is / are aware that the Bank may
initiate steps to identify / declare him / them as Willful Defaulter in terms of applicable Reserve Bank
of India Guidelines in case of his / their intentional default.
(If the Borrower is a partnership firm the Managing partner should assign on behalf of the firm and all
partners in their individual capacity also)
- 146 -
a) .. ................. S/W/D/o .......
............................................................................................residing at........
..............................................................................................................................................................
b) .. ................. S/W/D/o.........
.. .................. residing at.....
.............................................................................................................................................................
c) .. .................S/W/D/o......
.. ..................residing at. ....
..............................................................................................................................................................
d) ....................... S/W/D/o........
.. ...................residing at .....
.. .....................................................................................

when due.
2) To authorise the Bank to disburse/pay the amount of the loans to ...................... (borrower(s))
in such manner as determined by the Bank at its discretion.
relating to me/us by the Bank including the Credit facility availed/to be availed to Credit Information
in case I / We commit(s) default in the repayment of the credit facility granted, the Bank and /or the
Reserve Bank of India/CIBIL or any other agency authorized to collect such information will have an
Signature of Co-obligant(s)
Place :
Date :
- 147 -
AB 40
To be obtained on General Stamp paper
Andhra Bank
Hypothecation of Movable Machinery
ANDHRA BANK (hereinafter called the bank which includes its assings) having at the request of
M/s................................................................................. having its registered Office at ...............................
.............................................................................................. (hereinafter called the Borrower) agreed to
grant to the Borrower a loan of ` ........................ (Rupees ........................................................................
................................................................................................only) repayable with interest in the manner
mentioned in the Agreement dated ......................... made between the Borrower of the one part and the
Bank of the other part (hereinafter referred to as the Principal Agreement) IT IS HEREBY agreed by the
Borrower jointly and severally with the bank as follows:
1. The expression the Borrower shall when the Borrower is
a) An individual, include his or her heirs executors administrators and aissigns:
b) A firm, include the partners for the time being of the firm
c) A Company, include its successors and assigns:
d) A joint and undivided Hindu family or a joint family firm, include all its coparceners:
e) An association corporate or incorporate, include its successors and assigns and all members
and their respective heirs/executors, administration and assings:
2. The Borrower hereby hypothecates in favour of the Bank all those the following goods of the Borrower
(described in general terms) namely:
All tangible movable machinery and plant (both present and future) whether installed or not and
whether lying loose or in cases at site or in transit or which may at any time hereafter during the
continuance of this security be installed or lying loose or in cases or being in or upon or about the
borrowers premises and godowns at__________________________or wherever else the same
may be or be held by any party anywhere to the order and disposition of the Borrower or in course of
transit to the Borrower or in course of transit to the Borrower (all of which are hereinafter called the
hypothecated goods) The hypothecated goods are hypothecated as security by way of first charge
for due repayment by borrower to the Bank at____________________________of the said sum of
` ______________(Rupees____________________________________________only) or the
balance thereof for the time being outstanding in accordance with the terms of the principals Agreement
with interest at the rate therein provided, and for the payment of all sums of money payable by the
Borrower to the bank either under the Principal Agreement or hereunder AND all costs (between
attorney and client) charges and expenses incurred by the Bank for the preservation, protection,
defense and perfection of this security or attempted or actual realisation thereof AND ALSO for due
repayment and discharge of all present and future indebtedness and liabilities of the Borrower to the
Bank of any kind in any manner whether solely or jointly, primary or collateral accruing with all relative
interest charges costs (between attorney and client) charges and expenses.
3. The Borrower shall so long as the advance remains unpaid, pay interest thereon or on the balance
thereof due from time to time at the rate of _____________________%(percent) over Bank rate
Miniumum________________%______________percent) per annum with quarterly rests in March,
June, September and December each year.
- 148 -
4. Subject to the proviso following and the Banks powers conferred by this security, the Borrower may
in the ordinary course of business sell and dispose of any of the hypothecated goods. But the Borrower
shall on any and every such sale on receipt of the documents or sale proceeds deliver the documents
or pay the net proceeds of sale in satisfaction so for as the same will extend of the balance then due
and owing on the account kept by the Bank in respect of such loans, provided that the Borrowers
shall not make any sale of any of the hypothecated goods upon being prohibited in writing by the
Bank from doing so.
5. The Borrower shall, whenever, required by the Bank give full particulars to the Bank of all the assets
of the Borrowers and of the hypothecated goods and shall at all times allow the Bank or the authorized
agent of the bank inspection of the hypothecated goods and of all records of the Borrower in reference
thereto and shall allow the Bank or its agent to value the same. All costs charges and expenses
incurred by the Bank and of incidental to such inspection and valuation shall be paid to Bank forthwith
on demand (the Banks statement being conclusive) and until payment, shall with interest at the rate
aforesaid be a charge upon the hypothecated goods. Any such violation shall be conclusive and
binding on the Borrower.
6. The Borrower shall at all times during the continuance of this security keep and maintain such margin
of security in favour of the Bank as the Bank may require from time to time. If and so often as the said
margin shall fail to be maintained, then the Borrower shall forthwith (according as the Bank may
require) either hypothecate to the bank further goods or tangible movable property approved by the
Bank and of sufficient value to make up the deficiency or shall reduce the amount for the time being
due to the Bank by a cash payment so as to maintain the said margin.
7. The Borrower shall pay all rents, rates, taxes and other outgoings in respect of the immovable property
in or on which the hypothecated goods may for the time being be lying and shall keep such property
insured against loss or damage by fire and also against such other risks as the Bank whenever
required, in default the Bank may without prejudice to and affecting its rights under the principal
Agreement or hereunder or at law (but shall not be bound to) pay such rents, rates, taxes and other
outgoings.
8. The Borrower shall at the Borrowers expense keep the hypothecated goods in marketable and good
condition and shall insure the same against fire riot and civil commotion and such other risks as the
Bank shall form time to time require for the full market value in one or more insurance offices approved
by the Bank and shall deliver to the bank the policies of insurance duly assigned to the Bank which
shall hold the said policies for its own benefit. The borrower shall keep in effect and maintain such
insurance throughout the continuance of the security and delivery to the Bank the renewal receipts.
In default the Bank may (but shall not be bound to) condition and render marketable the goods or
effect or renew such insurance. Any amount paid by the Bank either under the preceding clause or
this clause and any costs charges and expenses incurred by the Bank shall be repaid on Demand
forthwith and shall until repayment with interested at the rate aforesaid be a charge on the hypothecated
goods. All sums received under such insurance shall be applied in or towards the liquidation of the
amount for the time being due to the Bank.
9. If the Borrower makes any default in payment of any installments of the principal money on the
respective due dates for payment thereof as mentioned in the Principal Agreement or in payment of
interest after the same shall have become due whether demanded or not or if any other event or
circumstances mentioned in clause 6 of the Principals Agreement occurs whereby the whole of the
advances or the entire balance thereof outstanding shall become forthwith due and payable or if the
advance or the control default in the performance of discharge of any obligation or liability to the
bank hereunder or under the Principal Agreement, then the Bank, if it thinks fit, shall be entitled at the
- 149 -
risks and expenses of the Borrowers without any notice at any time or times such default or event or
circumstances occur to enter (and for that purpose to do any necessary act deed or thing) any place
where the said goods may be and to inspect value and/or take charge and / or possession of all or
any part of the hypothecated goods and to enforce, realize, settle compromise and deal with any
rights aforesaid without being bound to exercise any of these powers or being liable for any losses in
the exercise thereof and without prejudice to the Banks rights and remedies of suit of otherwise and
notwithstanding there may be any pending suit or other proceedings, the Borrower hereby undertaking
to transfer and deliver to the bank all relative contracts, securities, bazaar chits, bills, notes, hundies,
and documents and agreeing to accept the Banks accounts, of sales and relisation and to pay any
shortfall or deficiency there by shown, and if the net sum realized by such sale shall be insufficient to
pay the amount secured, the Bank shall at liberty to apply any other moneys in the hands of the bank
standing to the credit of or belonging to the Borrower in or towards the payments of the Balance and
in the event of there being still deficiency, the Borrower shall forthwith pay such deficiency provided
that nothing herein contained shall in any manner prejudice or affect the Banks remedy against the
Borrower personally.
10. The Borrower hereby declares and guarantees that the hypothecated goods as to those now in
existence are the absolute and unencumbered property of the Borrower with full power of disposition
thereof, and as to future goods shall be the absolute unencumbered property of the Borrower with
full power of disposition.
11. Pending seizure by the Bank the hypothecated goods and any documents and any sale proceeds
received by the borrower on sale in ordinary course and any insure moneys received shall be held as
the Banks exclusive property specially appropriate to this security and the Borrower will not make or
suffer any mortgage or charge lien or encumbrance affecting the same or any part thereof nor do or
allow anything which may prejudice the security:
12. The Borrower shall furnish and verify all statements, reports, returns certificates and information
from time to time and as required by the Bank and gives and execute any necessary documents
required to give effect to this security.
13. This security shall be a CONTINUING SECUIRTY for the balance of the said loan from time to time
due to the bank.
14. Nothing herein shall prejudice or affect any lien security or claim to which the Bank shall by law or
otherwise be entitle or shall operate to prejudice the Banks rights or remedies in respect of any
present or future security guarantee obligation or degree for any indebtedness or liability of the
Borrower to the Bank.
15. If the Borrower be more than one individual all shall be bound hereby jointly and severally and if the
borrower shall be a firm such firm and all members from time to time thereof shall be bound hereby
notwithstanding any changes in the constitution or style thereof and whether the firm shall consist of
or be reduced to one individual.
16. If and whenever this security shall be held by the Bank forth Borrower liability the Bank for any third
partys obligation to the Bank, then the Bank shall be free without reference to the Borrower to deal
and the Borrower hereby consents to the Bank dealing with the Principal debtor and with any securities
obligations or degrees and generally to act as if the Borrower were primarily liable and to give time or
to her indulgence or make any variation, without there by in any manner impairing or prejudicing the
Banks rights against the Borrower, who declares that the liability to the Borrower shall be deemed
that of a co-promiser with such third party.
- 150 -
17. That any notice in writing required to be served on the borrower shall be deemed to be sufficiently
served if addressed to the borrower(s) at the address given and left at such address or forwarded by
post. A notice send by the post shall be deemed to be given at the time when in the course of post it
will be delivered at the address to which it is sent.
his / her / their consent for disclosure of all / any of the information and data relating to them by the
Bank including the Credit facility availed / to be availed to Credit Information Bureau (India) Ltd., and
/ or any other agency / Reserve Bank of India / and or any other person or agency entitled to such
information. The Borrower(s) further unconditionally and irrevocably agree that in case he / she /
they commit(s) default in repayment of the credit facility granted, the Bank and / or the Reserve Bank
of India / CIBIL or any other agency authorized to collect such information will have an unqualified
right to disclose or publish his / her / their name(s) and photographs as defaulters in such manner
authorized in their absolute discretion may think fit.
19. The borrower(s) do hereby declare that they are aware that the Bank may initiate steps to identify /
declare them as Willful Defaulter in terms of applicable Reserve Bank of India Guidelines in case of
his / their intentional default.
Further I / We hereby confirm that I / We shall not raise any dispute in whatsoever manner
binding on me / us.
IN WITNESS WHEREOF the Borrower has executed these presents this ...
day of ..20.........
Signature of borrower
SCHEDULE
Details of security Value
Signature of borrower
- 151 -
AB 41
FORM - 3
FORM OF DECLARATION
I, Sri ......................................................................S/o ....................................................... aged ...............

years residing at ..........................................................................................................................................
being desirous of taking financial assistance from Andhra Bank having Head Office at 5-9-11, Dr. Pattabhi
Bhavan, Secretariat Road, Saifabad, Hyderabad - 500 004 and with a branch at .........................................
....................................................... Taluk ............................................. District ................................................
make this declaration as required by section .................................................................................................
........................................................................................................... that I own land / immovable property
or hold land as specified in the schedule below and I hereby mortgage, create a charge on such land /
immovable property in favour of Andhra Bank, as security for the payment of the amount of financial
assistance of ` ............................. (Rupees ...............................................................................................
................................................................................................) sought by me and also for all future financial
assistance which the credit agency may give me together with interest thereon and for all costs and expenses
in connection therewith.
Schedule
Survey No. Boundaries
Name of Name of Name of
City S.No. South North
Village Taluk Dist.
Plot No. Plot Hissa East West
Area Assessment Approximate Encumbrance if any

REMARKS
A.G. ` Ps. Value Nature Amount
I hereby declare that the facts mentioned above are true to the best of my knowledge and belief
Place :
Date : Signature of Applicant
Applicants Signature attested by :
1)
2)
(Specify the name and address of witness with signature)
(Land owned and land held as tenent should be separately mentioned)
Forwarded with compliments to the Tahasildar / Sub-Registrar ________________ with a request to include
the particulars of the charge, under the declaration, in the Record of Rights and to return to the Bank for its
record.
for Andhra Bank
Manager
Date ___________________ Branch
Returned with compliments to the Branch Manager, Andhra Bank ___________________ the Charge/s
created under the declaration is / are duly included in the record of Rights on this .............................. day
of ...................................... 20............
Tahasildar / Sub-Registrar
- 152 -
AB 42
Place: ________________
Date : ________________
To
The Manager
The Andhra Bank.
....
Sir,
Re; Credit facilities Banks right to cancel limits, modify terms and/or recall advances.
With reference to the under mentioned credit facilities sanctioned in my/our favour, for which necessary
documents, as per your rules, have been executed by me/us on. Or may from time to time
hereafter be executed by me/us. I/we agree that the limit/s sanctioned and the terms of advance, like rate of
interest, margin, duration, etc., may be revised, cancelled at your sole discretion for any reason whatsoever,
including all or any of the following reasons, viz., to suit the exigencies of business, or changes in the market
conditions, or to implement the policies of the State/Union Governments, or the Reserve Bank of India. On
such notice of revision/cancellation of all or any of the above limits, or change in any of the terms, I/we agree
to pay back the amount/s due to your Bank, and/or abide by the new or revised terms.
Nature of facility Limit
1.
2.
3.
I/We undertake, in case I/we fail to repay the loans on or before
Or to pay the necessary margins or amounts and reduce the liability as and when so desire to
pay..% extra interest on the amounts due to you as per rules in force for the time being in your
bank and authorise you to take such action as you may deem fit; including sale by public auction or by
private negotiation, as per your convenience, of the security held by your Bank, without any further notice to
me/us. You are at liberty in your sole discretion to appropriate the monies thus realized towards the sum(s)
due to you in full or in part satisfaction, according to the amount/s realized or available. If any amount is still
found due under whatever head, I/we undertake to pay it personally on demand by you.
Yours faithfully,
(BORROWER/S)
With reference to the above credit facilities, kindly pay the amount thereof to
Yours faithfully,
(CO-OBIIGANT/S)
- 153 -
AB 43
HYPOTHECATION CUM GUARANTEE AGREEEMENT
(To be stamped as per the applicable Stamp Duty as per the State)
Agreement executed by, Sri...................................................

S/o.............................................................................. carrying on
business of............................................as sole proprietor under the name and style of
M/s.............................................................. by M/s......................
A partnership firm carrying on business of..
at............................................................ represented by its Managing partner,
Sri................................................... S/o.........
Residing at........................... carrying on business
of....................................................................... on behalf of the Joint family by the
..................Society, Registered under the Societies Registration Act/Co-
operative Societies Act with its Registered Office at.....
....and Represented by................
herein after called The Borrower which expression shall Include his/their respective/
heirs, executors, administrators and assigns and
1. Sri..................................................S/o...
Occupation..Residing at
2. Sri. S/o..
Occupation.Residing at..
Herein after The guarantors which expression shall include his/their respective heirs, executors,
administrators and assigns in favour of the Andhra Bank.Branch with
it's Head Office at.Dr Pattabhi Bhavan, Saifabad, Hyderbad 500004 hereinafter called The Bank which
expression shall include its assigns witness as follows :
In consideration of the Bank having at the request of the Borrower sanctioned by way of cash credit/
loan to be secured by hypothecation/pledge of crops, live stock, poultry the stocks, raw materials, stock-in-
progress, machinery, stores and spares described in Schedule I besides the guarantee of guarantors, this
agreement is executed evidencing the undertaking of the borrower and the guarantor/s as follows:-
1. That the borrower undertakes to pay the amount that may be due under the credit facilities sanctioned
i.e, `...................................................................
with interest thereon at....................... Within.........months
hereof in..installments of.subject however that if any installment is not paid
within the time, the entire balance outstanding due by them shall become payable immediately on
demand by the Bank or the Bank charging enhanced rate of interest as for any other general advances
without advantage of concession rate of interest or under DIR Rules.
- 154 -
2. That the Securities now lodged by the borrower and also all the future stocks and assets likewise shall
be security for the repayment and discharge of all and any other indebtedness or liability of the
borrower to the Bank:
3. That the stocks, goods and machinery etc shall always be kept at the risk of the borrower, who shall
have them fully insured against loss or damage, as may be directed by the Bank, failing which, the
Bank may but without obligation so to do, insure them against such risks and for such amount as it
may deem fit and debit to the borrowers account.
4. That the borrower shall always keep the stock, goods etc. under security to the Bank, distinct and
distinguishable and shall be held as Banks property appropriated towards this security and to be
dealt with by the Bank as per its discretion, to be always available for the inspection by its officers,
nominees, and if necessary to seize, break open the premises and dispose off without further reference
to the borrowers either by public auction or by private contract or make any arrangement to carry on
the business through agents or by leasing or otherwise as the Bank may deem fit but without being
bound to exercise any of their powers or otherwise as the Bank may deem fit but without being bound
to exercise any of their powers or being liable for any loss in exercise thereof and without prejudice to
the Banks rights and remedies of suit or otherwise.
5. That this agreement shall operate as a continuing security for all the monies, indebtedness, liabilities
of the borrower to the Bank notwithstanding the credit balance in the account at any time or partial
payment thereof and shall not prejudice any rights or remedies of the Bank in respect of any present
or future security, guarantee obligation or liability of the borrower to the Bank;
6. That the guarantor/s undertake repayment of all such monies at any time payable by the borrowers
and the performance and observance by the borrowers of the terms and conditions of the sanction by
the Bank;
7. That the liability of the guarantors herein is co-extensive with that of the borrowers as if the guarantors
are the principals debtor/s and may be recovered without any recourse to the Borrowers, without
obligation on the part of the Bank to call upon the Borrowers first, to pay the amount or take any other
action; that it shall not therefore be necessary for the bank even to realize the securities and that the
guarantee hereunder shall be continuing one notwithstanding that any of the accounts opened in
respect of the loans and advances sanctioned to the Borrower may at any time or from time to be
brought to credit;
8. That any demand by the Bank for the payment on the guarantors shall be conclusive and shall be paid
without demur by the guarantors;
9. That the Bank shall be at liberty to grant time or other indulgence, varying any of the terms
notwithstanding the provisions of Sections 133, 134, 135, 139, 140, and 141 of
The Contract Act, 1872 or any other provision of Law and the guarantors shall not claim to be discharged
because of the Banks taking any other security or requiring additional security or losing of any security
of for any reason whatsoever including default or negligence, regarding any security that have been
or could have been taken;
- 155 -
10. That any notice by way of demand or otherwise may be given by the Bank to me/us by sending the
same by post and addressed to me/us and the notice shall be deemed to have been given at the time
when it will be delivered in the ordinary course of post and it will be sufficient in order to prove service
of any such notice and to prove that the envelope containing the same was posted, and the certificate
signed by any officer duly authorised by the bank in this regard that envelope was posted, shall
constitute such proof.
11. That the guarantee herein contained shall not be determined or affected by the death of the guarantor(s)
hereunder but shall in all respects and for all purposes be binding an operative on his/their successor(s)
heir(s) and assigns until repayment of all moneys secured by and due to the Bank under the loans
and advances.
12. That in the case of the borrowers being a firm my/our guarantee and obligation hereunder shall not be
affected by any change in the constitution or style of such firm whether consisting of or reduce to one
individual at any time and in the case of our being a firm, our firm and all members from time to time
thereof shall be bound hereby notwithstanding any change in the constitution or style of our firm
whether consisting of or reduced to one individual at any time and being more than one individual all
of us shall be bound jointly and severally. We further agree that in the event of our being more than
one individual unconnected in partnership notwithstanding anything herein before contained we shall
be jointly and severally liable to the Bank for the entire outstanding in respect of the loans and advances
and that the Bank shall be at liberty to sue either or any of us in respect of such suit subsequently
without joining the other or others of us and notwithstanding any decree in any such suit subsequently
to sue the other or others of us and to proceed to judgment and execution at the option of the Bank
until its claim is fully satisfied.
Schedule 1
Particulars of goods Secured.
Guarantors Borrower/s
Place :
Date :
- 156 -
AB 44
REQUEST LETTER FOR PREPAID ACQUISITION
(To be obtained from the Merchant Establishment)
From : To,
______________________________ The Manager,
______________________________ _________________________ Centre/Branch
______________________________ ______________________________
Dear Sir,
Sub : Prepaid Acquisition against Card Receivalbe.
I/We request you to advance us a sum of ` ................................................. ..................... for a period
of ........................................... months as Prepaid acquisition facility (PPA). The said amount may please
be adjusted out of the Card Payments due to us against our business on cards. I/We agree for the Bank
charging ........................... rate of commission to reimburse the payment of credit/debit card
transactions along with processing charges and interest as fixed by the Bank.
I/We undertake to give the entire credit/debit card business to Andhra Bank only and agree that the PPA
amount is adjusted within a maximum period for ............................... months from the date of agreement.
I/We further undertake to abide by the Banks rules and regulation in force in this regard from time to
time.
Place :
Date : Name & Signature of the Authorized Signatory
- 157 -
AB 45
PREPAID ACQUISITION AGREEEMENT
(on a stamped paper as applicable in the respective states)
This agreement is made and executed at ______________________________ on this ___________ day

of ____________________, 20 ................... by M/s. ________________________________________
represented by its Sole Proprietor / Managing Partner/Managing Director/Authorized Signatory,
Mr./Ms. _____________________________________ S/o, D/o, W/o ____________________________
aged ____________ years, hereinafter called the Merchant Establishment, in favour of Andhra Bank
________________________________ Branch/Credit Card Center with its Head Office at Hyderabad,
as follows;
1. The above Merchant Establishment is enrolled by Andhra Bank under credit card scheme for accepting
valid Credit Cards/Debit Cards, issued by Andhra Bank / other Banks of financial institutions under
VISA and MasterCard logos, towards payment of the goods/services sold to the cardholders.
2. The above Merchant Establishment has requested Andhra Bank to pay a sum of
` ........................................... as prepaid acquisition by its letter dated ___________________.,
3. The Andhra Bank has agreed to pay a sum of ` ________________________ as prepaid acquisition
on the undertaking of the merchant establishment that they will give entire credit/debit card business
to Andhra Bank only till the amount is totally adjusted including interest before _____________________
through presentation of charge slips. Any deviation contrary to the undertaking by the merchant
establishment shall entitle the Bank to recall the advance besides charging penal interest at 2% p.a.
4. The Merchant Establishment agrees for deduction of commission at the rate of ______% on the
Cards business/charge slips presented to Andhra Bank.
5. The Merchant Establishment agrees for payment of processing charges at ................% of sanctioned
amount of Prepaid Acquisition facility and Interest at the rate of ___________% p.a. calculated on
daily products basis.
6. In case Prepaid Acquisition is not liquidated in full on or before _________________________ (due

date), the Merchant Establishment agrees to pay 2% p.a. penal interest over and above the rate of
Interest mentioned under clause No.5 above on outstanding balances from due date on wards till the
Prepaid Acquisition is liquidated completely with interest.
7. The Merchant Establishment has delivered a Demand Promissory Note for a sum of
` _________________________ towards prepaid acquisition in favour of Andhra Bank as collateral
security.
8. The Borrower(s) / Merchant Establishment do hereby declare and state that all the information and
data furnished by them for availing the credit facility are true and correct. They / it unconditionally and
irrevocably agree and give his / her / their / its consent for disclosure of all / any of the information and
data relating to them by the Bank including the Credit facility availed / to be availed to Credit Information
Bureau (India) Ltd and / or any other agency / Reserve Bank of India / and or any other person or
- 158 -
agency entitled to such information. The Borrower(s) / Merchant Establishment further unconditionally
and irrevocably agree that in case he / she / they / it commit(s) default in repayment of the credit
facility granted, the Bank and / or the Reserve Bank of India / CIBIL or any other agency authorized to
collect such information will have an unqualified right to disclose or publish his / her / their / its name(s)
and photographs as defaulters in such manner and through such medium as the Bank or the Reserve
Bank of India or CIBIL or any other agency authorized in their absolute discretion may think fit. The
borrower(s) / Merchant Establishment is / are aware that the Bank may initiate steps to identify /
declare him / them as Willful Defaulter in terms of applicable Reserve Bank of India Guidelines in case
of his / their / its intentional default.
Name & Signature of the Authorized Signatory
Common seal in case of limited companies
- 159 -
AB 46
Andhra Bank
(Government of India Undertaking)
DEED OF ASSIGNMENT
(To be stamped as an agreement)
This deed of Assignment is made at this...................................... day of.............................. 20 ..................

by Mr./Mrs ............................................................................... S/o.D/o. ....................................................
residing at ...................................................................................................................................................
herein after called the "assignor" which expression shall unless repugnant to the context include his/her
heirs/ executor/administrator on one part
In favour of ANDHRA BANK A BANKING COMPANY CONSTITUTED UNDER BANKING Companies (Acquisition
and Transfer of Undertaking Act 1980 having its head office at Saifabad, Hyderabad, herein after called the
"Assignee" which expression shall unless repugnant to the context include its successors assigns on the
other part.
WHEREAS The Assignee has agreed to grant education loan applied for by the assignor on terms and
conditions mutually agreed as one of the conditions being assignment future income of the Assignor and the
Assignor has agreed to execute deed of Assignment of future income in favour of Assignee.
NOW THIS DEED WITTNESSTH: -
1. In consideration of education loan sanctioned to the Assignor and being benefited out of the said loan,
by pursuing studies, and procuring a job, the Assignor does hereby transfer and assign in favour of
the assignee, the future income which the assignor may receive on being employed either in India or
abroad.
2. The assignee shall have absolute right and authority to receive the income whatever the assignor
may receive in his employment or profession or business not withstanding that the income earned is
due to education he had on the loan availed or not and adjust the amount towards amount due from
the assignor. The assignee shall continue to receive the income of the assignor till the liability/dues of
the assignee is fully adjusted.
3 The assignor shall always keep informed the assignee and furnish the true and faithful details of his/
her income/his/her employment/profession/business. In case of failure of assignor to inform the same,
the assignee shall have right to inform the Passport Authority of India or concerned Indian Consulate
for necessary action against the assignor.
4. The assignor shall not do, execute or perform or knowingly suffer any thing whereby or by reason
whereof the assignee or his successors or assignee may be prevented from receiving the future
income of the assignor.
In witness whereof the assignor has signed the day and the year first herein above written
Place:
Date :
ASSIGNOR
Date: Witness of Parent / Guardian
- 160 -
AB 47
SPECIAL POWER OF ATTORNEY
(To be stamped and registered with Sub-Registrar in case it is executed in India.
If it executed abroad it is to be authorisation by Indian Consulate abroad and
to be duly stamped within three months fromthe date of receipt in India)
Know all men by these present, I Mr. ................................................... S/o ................................................

aged ................. years, residing at ................................................................................................................
................................................................................................. do hereby solemnly affirm and state as follows.
WHEREAS:
A. I applied Andhra Bank ........................................................ Branch for an Educational Loan limit of
Rs ...................................... and in pursuant to which Andhra Bank sanctioned/agreed to sanction the
said loan to me. Mr ......................................................... S/o .................................................................
is the coobligant to the said loan.
NOW KNOW THESE PRESENTS WITNESSTH THAT:
I ....................................................................................... the above-named do hereby nominate, constitute
and appoint Mr. ..................................................................... S/o ................................................................
aged ..................... years residing at ............................................................................................................
.......................................................................................................................................................................
as my true and lawful attorney for me in my name and on my behalf, either solely or jointly with some other
persons, to do perform and execute all or any of the following acts, deeds, mater and thing or any of them for
me and on my behalf that is to say
1. To execute, carry in to effect and perform all agreements and contracts entered in to by me with
Andhra Bank branch with regard to the education loan availed or to be availed by me.
2. To execute acknowledge of debt, acknowledging the liability under the education loan referred
above availed/to be availed by me.
3. To execute agreement, deeds under Sec 25(c) of the Indian Contract Act for revival of the debt
referred above in case of necessity.
4. And generally to do, execute and perform all other act or acts deed, or deeds matter or thing
whatsoever which in the opinion of my said attorney ought to be done, executed and performed in
relation to the above education loan.
AND I hereby agree and undertake to ratify and confirm all whatsoever, my said attorney, under the power in
that behalf herein before contain, shall lawfully do execute or perform in exercise of the power ,authority and
liberty hereby conferred upon, under and by virtue of this deed. This power of attorney is irrevocable during
the continuance of the loan availed/to be availed by me.
In witness
Sd/-
Signed sealed and delivered at ................................. in the presence of Mr ...............................................

on ..............................................................................
Note: This power of Attorney is to be obtained from borrower who has attained the age of majority.
- 161 -
AB 48
TRIPARTITE AGREEMENT
This tripartite Agreement is made and executed at ---------------------------------------------------------- on this

the ----------------day of --------------------------20
BY AND BETWEEN
1. M/s ----------------------------------------------------------------------------------------------- a company incorporated
under Companies Act, 1956 having its registered office at ----------------------------------- represented herein
by its autorised signatory Mr. --------------------------------------------------------------------------------------------
herein after called The Developer.
2. Mr.------------------------------------------------------------------- S/o ----------------------------------------------------
aged ------------- years, residing at -------------------------------------------------------------- hereinafter called
the Borrower
3. Andhra Bank, a body corporate under the Banking Companies(Acquisition & Transfer of Undertakings)
Act, 1980 and having its Head Office, at No. 5-9-11, Dr.Pattabhi Bhavan, Secretariat Road, Saifabad,
Hyderabad 500 004 and carrying on business amongst other places at ----------------------- through its
branch known as ------------------------herein after called the Bank.
WHEREAS
The developer is developing residential flats to be known as ------------------------------------ on all that piece
and parcel of land admeasuring -----------acres situated at ------------------------------------(V) -------------------
Mandal ----------------------District(hereinafter called the Land after obtaining due approvals from the
competent authorities.
The developer states and declares that it is entitled absolutely to develop and build the residential apart-
ments on the aforesaid land by virtue of Development Agreement dated ...................... and registered Power
Of Attorney dated .............................. executed by the title holder of the landed property.
The Borrower has approached the Developer for purchase of a residential flat beaing No. ....................... on
............................. floor consisting of ....................................... sq.feet together with undivided share in land
of ...........................sq.yds. and parking space in the building proposed to be constructed on land aforesaid
(herein called the Flat).
The developer has agreed to sell the Flat on the terms and conditions agreed to in the Agreement of Sale
Deed .............................. executed in between the Developer and the Borrower.
The Borrower has applied to the Bank for granting a housing loan of ` ..............................................
(Rupees ..................................................................... only) for purchase of the Flat. On the application of
the Borrower, the Bank has agreed to grant a housing loan of ` .....................................(Rupees ....................
.......................................................... only) to the Borrower on certain terms and conditions.
The Borrower has agreed to irrevocably authorize the Bank to remit the amounts as per the payment sched-
ule specified herein below as and when a demand is made by Developer by debit to the loan account
sanctioned in his/her name and also directly take delivery of the original sale deed to be executed by the
Developer in favour of the Borrower after its execution and registration.
- 162 -
SCHEDULE OF PAYMENT
Name & Address of Project:
1. Booking Advance & Flat Allotment --------%
2. On ------------------- --------%
3. On ------------------- --------%
4. On ------------------- --------%
5. On ------------------- --------%
6. On ------------------- --------%
7. On ------------------- --------%
8. On ------------------- --------%
9. On ------------------- --------%
10. On ------------------- --------%
Additional: Water & Electricity connections, corpus fund, clubhouse membership fee, car
parking, Registration fees, Stamp Duty, Documentation Charges, VAT, Service Tax/
construction cess/other taxes/Levies/other charges imposed by the Government or
Authorities from time to time will be charged extra.
The Developer has agreed to convey the Flat to the Borrower by duly executing and registering a Sale
Deed in his/her favour on receipt of the loan amount sanctioned and granted by the Bank to the Borrower
and deliver the Original Sale Deed to the Bank upon its execution and registration.
The Developer declares and affirms that the Bank is entitled to have a first charge by way of mortgage
over the Flat by reason of granting the housing loan to the Borrower.
On the above understanding the Bank agrees to sanction a housing loan of ` ................................
(Rupees ............................................................................. only) to the Borrower on certain terms and
conditions, which is separately documented in between the Borrower and the Bank.
Now this Agreement witnesseth as follows:
1. The Developer states and declared that they have and absolute right, title and interest to develop and
construct flats over the land and that there are no encumbrances or disputes of whatsoever nature over
the land as well as the Flat that is proposed to be conveyed to the Borrower. The Developer assures and
declares not to create any encumbrances over the land or the Flat covered under this Tripartite Agreement.
2. The Developer has agreed to sell the Borrower all that Flat bearing No. ---------------- on the ------------
floor consisting of ----------------sq.ft. together with undivided share of land and parking space in the
building proposed to be constructed on the land aforesaid under the Agreement of Sale Dated ---------
---------------------- executed between the Developer and the Borrower.
3. The Developer agree to construct the Flat within a period of -------- months form the date of this
Agreement, deliver possession and convey the same to the Borrower by a duly registered Sale Deed on
the terms and specifications agreed upon subject to payment of the amount hereinabove.
4. The Borrower requests for grant of a housing loan of ` ....................... and agrees to execute the
necessary loan and security documents in favour of the Bank for securing the due repayment of the
loan with interest costs, charges and expenses and faithfully & punctually comply with all the terms and
conditions that may be stipulated by the Bank.
5. The Developer agrees to demand payment from the Bank towards the cost of the Flat strictly as per the
stage of construction of the Flat agreed to be sold to the Borrower and it will be responsibility of the
Borrower to verify the stage of construction.
- 163 -
6. The Developer agrees that the housing loan of ` ....................................... to be sanctioned to the
Borrower is on the price mentioned in the Agreement of Sale dated ........................... and the Borrower
is solely responsible for meeting the margin money of ` ..........................................
(Ruppees_______________________________) as well as any escalations in cost or any other ex-
penditure and the Bank shall not be responsible for meeting any such obligations of the Borrower. The
Borrower agrees and undertakes to meet the margin money as well as escalations in cost or other
expenditure as may be demanded by the Developer.
7. The Borrower irrevocably authorizes the Bank to make disbursement of the loan amount by making
payment to the Developer on behalf of the Borrower by debit to the loan account on a demand being
received from the Developer aforesaid. The Borrower agrees that the Bank shall not be responsible to
ensure the progress of construction of the Flat. The Borrower further agrees that the all payments
made to the Developer shall be deemed to be payments made on behalf of the Borrower and Borrower
shall be liable for payment of the amounts disbursed to the Developer together with interest, costs, and
charges as shall be agree upon.
8. The developer agrees that the Bank shall be justified in not making payments on account of the Borrower,
if the borrower fails to meet the margin money and cost of escalation or other expenditure or when it is
satisfied that the demand for payment is not commensurate with the progress of construction of the Flat.
9. The Developer agrees to maintain correct accounts in respect of amounts paid on account of the
Borrower and give valid and proper receipts in token of receiving the said amounts.
10. The Developer assures the Bank that it is entitled to receive the amounts from the Bank on account of the
Borrower towards the cost of the house and no disputes between the Developer and the Borrower shall
in any way affect the rights of the Bank to secure its rights over the Flat agreed to be sold to the Borrower.
11. Immediately upon receipt of the loan amount sanctioned to the Borrower, the Developer agrees to
execute and register a valid conveyance in favour of the Borrower and deliver the original Sale Deed
after its Registration directly to the Bank. On this context, the Borrower irrevocably authorizes the
Developer to deliver the original sale deed directly to the Bank. On receipt of such Sale Deed from the
Developer, the Borrower agrees to call on the Bank and constructively deposit the Original Sale Deed
executed and registered in his/her favour for the purpose of creating a mortgage by deposit of title deeds
in favour of the Bank by meeting all expenses on account of stamp duty and registration as applicable.
12. The Developer agrees that the Bank shall be entitled to an exclusive and first charge over the Flat at all
times. The Developer agrees that it shall not be entitled to claim any lien or priority for any amounts
prejudicing the interest of the Bank until the dues to the Bank are fully met and discharged.
13. The Borrower agrees to punctually & promptly pay the installments to the Bank not withstanding there
being any delay on part of the Developer in delivering possession of the Flat within the agreed time.
14. In the event of any failure on the part of the Borrower to adhere to the agreed terms and conditions or
his/her death or insolvency or the occurrence of any situation, in the opinion of the Bank, which renders
the recalling of the loan granted to the Borrower, the developer agrees that it shall not cancel the
agreement of sale or execute any other document of conveyance or create any other encumbrances
over the said Flat to any other person or deal with the Flat in any other manner, until the dues to the
Bank under the loan account of the Borrower is discharged in full.
15. In case of any eventuality/breach, the builder agreeing to transfer the Flat to the Lender Bank/Nominee
appointed in this regard.
availing the credit facility are true and correct. They unconditionally and irrevocably agree and give his
/ her / their consent for disclosure of all / any of the information and data relating to them by the Bank
including the Credit facility availed / to be availed to Credit Information Bureau (India) Ltd and / or any
- 164 -
other agency / Reserve Bank of India / and or any other person or agency entitled to such information.
The Borrower(s) further unconditionally and irrevocably agree that in case he / she / they commit(s)
default in repayment of the credit facility granted, the Bank and / or the Reserve Bank of India / CIBIL or
publish his / her / their nema(s) and photographs as defaulters in such manner and through such
medium as the Bank or the Reserve Bank of India or CIBIL or any other agency authorized in their
absolute discretion may think fit. The borrower(s) is / are aware that the Bank may initiate steps to
identify / declare him / them as Willful Defaulter in terms of applicable Reserve Bank of India Guidelines
in case of his / their intentional default.
The expressions the Developer and the Bank shall be deemed to mean and include its successors and
assigns and the expression Borrower shall deemed to mean and include his/her heirs, successors, legal
representative administrators, executors and assigns.
DESCRIPTION OF THE LAND
All that piece and parcel of land admeasuring ---------- acres comprised in ----------- S.No. ---------------- of -
---------------------- (V) , ------------------------ Mandal ----------------------------district and bounded as follows
NORTH BY :
SOUTH BY :
EAST BY :
WEST BY :
DESCRIPTION OF THE FLAT
All that Flat beaing No. ------------ of the ---------------- Floor consisting of -----------------sq.ft. together with
undivided share in land of ----------------------sq.yds and --------------------- parking space in the Building know
as ----------------- ----------- situated at ---------------------.
NORTH BY :
SOUTH BY :
EAST BY :
WEST BY :
In witness whereof ------------------------------------------------------------------------- duly represented through

its Authorised Signatory Mr. --------------------------------------------------------------------------------------------------
the Borrower ----------------------------------------------------------------------- and the Bank represented through
its -------------------------------------------------- , Sri -------------------------------------------------------------------------
have set and subscribed their signatures on the -------------------------------- of ------------------------------------
Signed by the Developer
Authorised Signatory :
Signed by the Purchaser/Borrower
Signed by Sri --------------------------------------------- on behalf of Andhra Bank
- 165 -
AB 49
GENERAL POWER OF ATTORNEY
This deed of POWER OF ATTORNEY executed at

this day of by me/us (1) Sri/smt.
Son/daughter of
residing at (2) Sri/Smt.
son/daughter of
residing at in favour of Andhra Bank, a Body
corporate constituted under the Banking Companies(Acquisition and Transfer of Undertakings) Act 1980
having its Head Office at Hyderabad, and amongst others a Branch at
(hereafter called as Bank)
Whereas the Bank has agreed to grant advances to me/us against the remittances of monthly rents/
compensations from the properties owned by me/us, the details of which is stated in schedule hereunder
written(hereunder referred to as the said property) which are let out/leased out/given on leave and license
basis from the tenants/lessees/licensees to whom I/We have let out/leased out or propose to let out/lease
out the said property, I/we hereby nominate, consider and appoint Andhra Bank as my/our true and lawful
attorney for me/us in my/our name and on my/our behalf to do all or any of the following acts, matters and
things that is to say :
To demand,receive,collect any sum of money and rent(hereinafter referred to as said rent) that is due to
me/us or may become payable to me/us by virtue of the Tenancy/lease/license agreement(s) entered
between me/us and the tenants/lessees/licensees for the said properties and to give effectual receipts and
discharges for the same.
To sue and set in motion all proceedings and means of recovering the sum/sums of said rent payable or
receivable by me/us in respect of the said money and rent and also to commence, prosecute and to
defend at law all actions,claims,demands and disputes.
To do all other acts of and things as effective as I/We can do personally in respect of the said rent.
I/We agree and confirm that the Bank shall have the first charge over the said rent. I/We further confirm that
the said money and rent are free from any charge, interest, encumbrance or assignment in favour of any
other person.
The power of Attorney is irrevocable by me/us unless consented to by the Attorney in writing and shall
remain in force till then.
SCHEDULE
(DESCRIPTION OF PROPERTY)
In witness whereof this deed of Power of Attorney is signed by________________________________

this ___________________ day of ___________________ at __________________________________.
PRINCIPAL
(NOTARY/WITNESS)
- 166 -
AB 50
From :
To
The Branch Manager,
Andhra Bank,
LETTER OF UNDERTAKING
In consideration of your agreeing to sanction loan of `

vide your sanction letter No. dated and
General Power of Attorney dated executed by me/us in your favour to receive the
monthly rent from the tenants/lessees/licensees of the property which is owned by me/us, details of
which are furnished in the Schedule hereunder written, I/We hereby agree to irrevocably undertake as
under :
1. I/We hereby declare that I/We are the absolute Owners of the Property as detailed in the schedule
hereunder written and there is no encumbrance created on the said property, except Tenancy/Lease/
License which has been entered by me/us and the tenants/lessees/licensees and I/We further agree
and undertake that I/We shall not create any encumbrances over the property prejudicial to your interest.
2. I/We shall instruct the tenants/lessees/licensees to pay rents directly to you in terms of said General
Power of Attorney and I/We shall not receive any money/rent from the Tenants/lessees/licensees without
your specific permission.
3. I/We shall not revoke the said irrevocable General Power of Attorney dated
executed by me/us in your favour and in case of any loss suffered by you by me/our act of
commission/omission I/We shall indemnify and keep you indemnified against the loss caused for the act
of commission/omission, which has been done by me/us.
4. In case of premature termination of tenancy/lease/license, if any, I/We agree and undertake that I/We
shall inform you 2 months in advance and also inform you the details of new tenancy/lease/license to be
entered with tenants/lessees/licensees for the said premises to enable you to collect the rent from the
tenants/lessees/licensees in terms of General Power of Attorney dated
executed by me/us in your favour.
5. I/We further agree and undertake that breach of the aforesaid conditions shall tantamount to the breach
of the said sanction letter issued by you in our favour and the General Power of Attorney dated
executed by me/us in your favour and you shall be at liberty to take such other
action as you may deem fit against me/us.
SCHEDULE
DESCRIPTION OF THE PROPERTY
-
-
-
-
Yours faithfully,
Place:
Date:
- 167 -
Comp. No. 40161
CONSENT LETTER TO BE OBTAINED FROM BORROWER

FOR DISCLOSURE OF INFORMATION TO CIBIL
Andhra Bank
______________________________ Branch
To
The Manager,
Andhra Bank,
________________________ Branch
Reg : Consent for disclosure of information to CIBIL

*****
1. I / We understand that as a pre-condition, relating to grant of the loans / advances / other non-fund
based credit facilities to me / us the Andhra Bank, requires my / our consent for the disclosure by the Bank
of information and data relating to me / us, of the credit facility availed of/to be availed by me / us, obligations
assumed / to be assumed, by me / us, in relation thereto and default, if any, committed by me / us, in
discharge thereof :
2. Accordingly, I / We hereby agree and give consent for the disclosure by the Andhra Bank of all or
any such :
a) information and data relating to me / us;
b) the information or data relating to any credit facility availed of / to be availed by me / us, and
c) default, if any, committed by me / us, in discharge of my / our such obligation, as the Andhra
Bank may deem appropriate and necessary, to disclose and furnish to Credit information Bureau
(India) Ltd., and any other agency authorized in this behalf by RBI.
3. I / We, declare that the information and data furnished by me / us to the Andhra Bank are true and
correct.
4. I / We undertake that :
a) the Credit Information Bureau (India) Ltd., and any other agency so authorized may use, process
the said information and data disclosed by the Bank in the manner as deemed fit by them; and
b) the Credit Information Bureau (India) Ltd., and any other agency so authorized may furnish for
consideration, the processed information and data or products thereof prepared by them, to
Banks / financial institutions and other credit grantors or registered users, as may be specified
by the Reserve Bank of India in this behalf.
PLACE :
DATE : Signature of the Borrower
- 168 -
Comp No : 40162
CONSENT LETTER TO BE OBTAINED FROM GUARANTOR/(S)

FOR DISCLOSURE OF INFORMATION TO CIBIL
Andhra Bank
______________________________ Branch
To
The Manager,
Andhra Bank,
____________________________ Branch
Reg: Consent for disclosure of information to CIBIL

*****
1. I/We understand that as a pre-condition, relating to grant of the loans/advances/other non-fund based
credit facilities to _________________________________ (name of the borrower) and furnishing of
guarantee in relation thereto, the ANDHRA BANK, requires consent of the guarantor/s of the credit
facility, granted/to be granted, by the bank for disclosure of, information and data relating to the guarantor/
s, any credit facility availed of by the guarantor/s, obligations as assumed by the guarantor/s, in relation
thereto and default, if any, committed, in discharge thereof.
2. Accordingly, I/We, hereby agree and give consent for the disclosure by the ANDHRA BANK of all or any such;
(a) information and data relating to me/us
(b) the information or data relating to my/our, obligations in any credit facility granted/ to be granted,
by the bank and guaranteed by me/us, as a guarantor; and
(c) default, if any, committed by me/us, in discharge of my/our such obligation, as the ANDHRA BANK
may deem appropriate and necessary, to disclose and furnish to Credit Information Bureau (India)
Ltd. and any other agency authorized in this behalf by RBI.
3. I/We, declare that the information and data furnished by me/us to the ANDHRA BANK are true and correct.
4. I/We, undertake that:
(a) the Credit Inforation Bureau (India) Ltd. and any other agency so authorized may use, process the
said information and data disclosed by the bank in the manner as deemed fit by them; and
(b) the Credit Information Bureau (India) Ltd. and any other agency so authorized may furnish for
consideration, the processed information and data or products thereof prepared by them, to banks/
financial institutions and other credit grantors or registered users, as may be specified by the
Reserve Bank in this behalf.
Place :
Date : SIGNATURE OF THE GUARANTOR/S
- 169 -
AB 51
From :
(Lessee/tenants name and address)
To
The Branch Manager,
Andhra Bank,
------------------------------------------ Branch
Sir,
Sub : Acceptance of General Power of Attorney in favour of Andhra Bank.
I/We have read the General Power of Attorney dated______________executed by my/our landlord/lessor
in your favour authorizing you to receive the money / rent payable by me/us in respect of the property
detailed below.
I /We agree for the same and undertake to pay the money / rent as per the terms of lease, regularly to you
by virtue of the said General Power of Attorney.
I /We admit that as per the terms of General Power of Attorney, the failure to pay the money/rent as afore-
said would entitle you to take appropriate proceedings against me/us for recovery of amount due from me/
us
Place :
Date :
Tenant/Lessee
Description of Property
- 170 -
AB 52
(to be stamped as an agreement as applicable in the State)
Andhra Bank
REVERSE MORTGAGE LOAN AGREEMENT

This loan agreement made at this ___________________ day of ________________________ 20____ .
Between
1. Andhra Bank, a banking company constituted under Banking Companies (Acquisition and Transfer
of Undertaking) Act 1980 with its Head Office at 5-9-11, Dr. Pattabhi Bhavan, Saifabad, Hyderabad -
500 004 and a branch among others at ______________________ (hereinafter referred to as the
Lender which expression shall unless is be repugnant to the subject or context thereof, include its
successors and assigns) of the One part;
AND
2. (i) Mr / Mrs. / Ms ___________________________________________________________________
S/o W/o D/o ________________________________________ aged about ____________ residing
at ___________________________________________________________________________
(hereinafter referred to as the Borrower which expression shall unless it be repugnant to the subject
or context thereof, include his / her heirs, executors, administrators and permitted assigns) of the
other part.
WHEREAS
(A) The Borrower (or where the Borrower includes spouse, one of them) is a Senior Citizen as
hereinafter defined and is the absolute owner of a self acquired and self occupied house property
more particularly described in Schedule I hereto (hereinafter referred to as the residential property)
and has applied to the Lender for a loan of ` ______________ against the security of the said
residential property for the purpose described in Article 2 of this Loan Agreement;
(B) The Lender, on the basis, inter alia, of the application has agreed to grant the loan to the Borrower
upon terms and conditions hereinafter set forth;
NOW THEREFORE THE PARTIES HERETO AGREE AS FOLLOWS :

ARTICLE - 1
DEFINITIONS AND INTERPRETATION
1.1 Definitions
In this Agreement, the following capitalized words shall have the following meanings;
Agreement means this Loan Agreement together with the Schedules and Annexures attached hereto as
may be amended from time to time in accordance with its terms.
Annexure means the Annexure(s) or Schedule(s) to this Agreement
Borrower means a single or two borrowers (husband and wife) as the context may require.
Business Day means :
- 171 -
a. for determining when a notice, consent or other communication is given, a day that is not a
Saturday, Sunday or public holiday in the place to which the notice, consent or other
communication is sent; and
b. for any other purpose, a day (other than a Banks holiday, sunday or public holiday) on which
banks are open for general banking Business in __________________________________
(write the place of the branch)
Encumbrance means a mortgage, charge lien, pledge - hypothecation or security interest of any
description wherever whatsoever and also negative lien and on non-disposal undertakings, if any given
by the Borrower
Loan means the amount of the loan agreed to be made available under this Agreement as described in
Article 2 and shall wherever the context so requires include the outstanding principal amount of the loan.
Loan Amount means the amount of the Loan and includes outstanding interest, fees, charges, levies,
expenses, claims, costs and / or other dues payable to the Lender in relation thereto which does not
exceed 90% of the Realisable value of the property.
Outstanding Amount means the amount outstanding to be repaid under the Loan which amount shall
include the principal, interest and such other expenses as are agreed to be borne by the Borrower under
this Agreement.
Market value of the property value of the Immovable Residential property as assessed by Empanelled
valuer of the Bank.
Parties means the Lender and the Borrower.
Prepayment means premature repayment as per the terms and conditions laid down by the Lender in
that behalf and in force at the time of repayment.
Realisable value of the property means 70% of Market value of the property is to be taken as Realisable
value of the property.
Residential Property means the residential property ( a house or a flat) located in India and more
particularly described in Schedule I hereto which is self acquired and self occupied by the Borrower and
owned by the Borrower but shall not include commercial property.
"Right of Rescission" means the Borrower's right to cancel the loan within three Business Days to cancel
the transaction. If the loan amount has been disbursed, the entire loan amount will need to be repaid by
the borrower within this three days period.
"Senior Citizen" means a person who is not less than 60 years of age as on the date hereof;
1.2 Other Terms
Other terms may be defined elsewhere in the text of this Agreement and, unless otherwise indicated, shall
have such meaning throughout this Agreement
1.3 Interpretation
i. Wherever the context so requires, any reference to the singular includes the plural and any
reference to the plural includes the singular respectively;
ii. Words of any gender are deemed to include the other gender;
iii. The arrangement of clauses shall have no bearing on their interpretation;
- 172 -
iv. Words denoting a person shall include an individual, corporation, company, partnership, trust
or other entity; provided however that clause specifically applicable to a company or body
corporate shall not apply to any other entity;
v. Heading and bold typeface are only for convenience and shall be ignored for the purposes of
interpretation;
vi. Reference to the word include or including shall be construed without limitation;
vii. Schedules, sub-schedules and Annexure to this Agreement shall form an integral part thereof.
1.4 The terms and expressions not herein defined shall where the interpretation and meaning have been
assigned to them in terms of the General Clauses Act 1897, have that interpretation and meaning.
ARTICLE 2
PURPOSE OF THE LOAN
2. Purpose of the Loan
2.1 Purpose for which the Loan to be used
The Loan under this Agreement shall be used for one or more of the following purposes, namely :
a. Up-gradation, renovation and extension of residential property;
b. Uses associated with home improvement, maintenance / insurance of residential property;
c. medical, emergency expenditure for maintenance of family;
d. supplementing pension / other income
e. repayment of an existing loan taken for the residential property; and
f. meeting any other genuine need as may be specified by the Borrower and agreed to by the
Lender.
2.2. Purposes for which the Loan cannot be used
The Loan under this Agreement shall not be used for speculative trading or business purposes.
ARTICLE 3
AGREEMENT AND TERMS OF THE LOAN
3.1 Amount of Loan
The Lender agrees to lend to the Borrower and the Borrower agrees to borrow from the Lender for the
purposes specified in Article 2 hereof and on the terms and conditions contained herein, a sum not exceeding
` .................................... /- (Rupees ................................................................................................... only)
The said sum is hereinafter referred to as "the Loan".
The Lender reserves the right to revalue/ cause to revalue the residential property mortgaged to it to
secure the Loan at intervals of every .................................................................... years and revise the
quantum of Loan based on such revaluation. Revaluation shall be done by ............................method. The
Bank shall have the option to revise the periodic /lump-sum amount every 3 years along with revaluation. In
the case of fall in property value / prices, the bank may decide to revise the loan amount at any time earlier
than three years. At every stage of revision, it should be ensured that the loan to value ratio does not
exceed 90% of the Realisable Value.
- 173 -
If the borrower does not accept the revised terms, no further payment will be effected by the Bank. Interest
at the rate agreed before the review will continue to accrue on the outstanding amount of the loan subject
to interest reset as mentioned at para 3.4. The accumulated principal and interest will become due and
payable as mentioned at 3.8 and 8.2.
The Borrower shall have the option to accept the revised amount of Loan. In the event of the Borrower not
agreeing to the revised Loan, where such revised loan is lower than the amount agreed earlier, the Loan
disbursed before revaluation will be the amount of the Loan agreed between the parties and shall continue
to carry interest at the agreed rate, and the Lender shall not be required to make any further disbursements.
3.2 Disbursement of Loan
a. The Loan shall be disbursed at monthly/ quarterly / half yearly / yearly intervals / or in lumpsum or as
a committed line of credit / or in any combination of the above as may be mutually agreed between
the Lender and the Borrower. In the event of the demise of the Borrower, the un-disbursed amount of
the Loan shall be disbursed to the surviving spouse. Except in cases where the Loan is to be used for
(a) retirement of existing debt (b) payment to contractor for repairs of the residential property (c)
payment of property taxes or (d) payment of insurance premium of the residential property where the
Loan shall be disbursed directly by the Lender to the concerned party and in other cases the Loan
shall be disbursed by crediting the disbursements of the Loan to an SB Account in the joint names of
the borrowers operated Either or Survivor.
b. The Loan will be disbursed in the manner stated above subject to the Borrower complying with the
provisions of this Agreement and the Lenders' scheme for financing of senior citizens against mortgage
of residential property (Reverse Mortgage Loan Scheme) a copy whereof has been given to the
Borrower and the disbursement procedure stipulated by the Lender.
c. The Borrower hereby acknowledges having received a copy of the Reverse Mortgage Loan Scheme
and undertakes to comply with the said Scheme and the disbursement procedure stipulated by the
Lender.
3.3 Mode of Disbursement
All disbursements to be-made by the Lender to the Borrower as stated at para 3.2 and the interest on loan
will begin to accrue in favour of the lender as and when the loan account is debited.
3.4 Interest
a. The principal amount of the Loan understanding from time to time shall carry interest at the rate of
_______ % per annum at monthly rest. The rate of interest will be reset at the end of every ______
years from time to time or such intervals as the Bank may decide from time to time.
OR
a. The principal amount of the Loan outstanding from time to time shall carry variable rate of interest to
be fixed by the Lender at intervals of ________. The variable rate shall be computed _____________
___________________________________ (the manner of computation of the variable interest to
be given by the Lender).
b. The interest shall be debited to the Loan account of the Borrower monthly / quarterly and shall carry
further interest at the rates specified in clause (a) above upon the footing of interest becoming part
of the principal with rest taken or made monthly / quarterly.
c. Any amount paid or payable by the Lender to the Central or State Government shall be borne by the
Borrower and unless reimbursed by the Borrower shall be deducted by the Lender from the Loan.
- 174 -
3.5 Computation of Interest
The computation of interest or any other charges which shall have accrued under this Agreement shall be
made on daily basis using a 365 day factor.
3.6 Period of Disbursement of Loan
The disbursement under the Loan shall be for a maximum period of 15 years.
3.7 Prepayment of the Loan
The Borrower may at his option prepay the Loan together with the interest and other charges due thereon
at any time without any prepayment levy / penalty / charges for such prepayment.
3.8 When the Loan, Interest etc., becomes due
The Loan together with interest and other charges due thereon shall become due and payable :-
a. on the death of the Borrower
b. where the Borrower is survived by spouse, on the death of the spouse.
c. on the sale or likely sale of residential property by the Borrower or surviving spouse as the case
may be.
d. where the Borrower or the surviving spouse, as the case may be permanently moves out of the
residential property.
Explanation : A person is deemed to have permanently moved out of the residential property if he has not
lived in the property continuously for one year or do not intend to live continuously in the property and
conveys his intention to the Lender.
3.9 Recovery / Settlement of Loan, Interest etc.
The Loan together with interest and other charges due and payable under this Agreement shall be recovered
from the sale of the residential property mortgaged as security for the Loan.
Provided that no sale of property shall be effected for a period of two months from the above date when the
Loan becomes due and payable to the Lender to enable the Borrower or his spouse or his legal heirs to
repay / pay the Loan Amounts without the sale of the property.
3.10 Appropriation of Payment / Realisations
Unless otherwise agreed to by the Lender, any amount paid by the Borrower / his spouse or legal heir or
realized from the sale of residential property shall be appropriated towards such dues in the order they
appear herein above :
a. Costs, charges and other monies / expenses;
b. Interest on cost, charges, expenses and other monies;
c. Interest payable in terms of this Loan Agreement;
d. Repayment of principal amount of the Loan; and
e. The excess, if any, shall be paid to the Borrower / surviving spouse / legal heirs of the Borrowers,
as the case may be.
The Lender agrees that if the value of the residential property mortgaged as security for the Loan falls
below the value of the Outstanding Amount due under this Agreement, the Lenders claim shall be limited to
the value of the residential property.
- 175 -
3.11 Recourse against Residential Property
The Lender agrees that for recovery of the Loan, the recourse shall be against the Residential Property.
ARTICLE 4
SECURITY AND DISBURSEMENT GUARANTEE
4.1 SECURITY
The Loan, together with interest, compound interest, cost, charges and monies whatsoever stipulated in
this Agreement shall be secured by an exclusive mortgage of the residential property described in the
Schedule I hereto by way of Regd. Equitable Mortgage. However, the Lender shall have the right to decide,
in its sole discretion, the type of mortgage including the manner of its creation and the Borrower shall
create the mortgage accordingly.
The Borrower shall make out a good and marketable title, free from encumbrances to his residential property
to the satisfaction of the Lender and comply with all such formalities as may be necessary or required for
the said purpose now or hereafter at any time during the pendency of the Loan.
ARTICLE - 5
CONDITIONS PRECEDENT TO DISBURSEMENT OF THE LOAN
The obligation of the Lender to make disbursement of the Loan or its continuance under this Agreement
shall be subject to the observance and performance by the Borrower of all its obligations and undertakings
to be observed and performed under this Agreement and to the satisfaction, prior to making of such
disbursement, or compliance by the Borrower of disbursement procedure as stipulated by the Lender, as
also submission of information as stipulated by the Lender and of the compliance of the following further
conditions.
a. Creation of Security :
The Borrower shall have created a security in favour of the Lender as stipulated in Article 4
hereof.
b. Non-existence of event of default :
No event of default as defined in Article 8.2 hereof shall have happened and be continuing.
c. Execution of all documents
The Borrower shall have executed all other agreement/s, document/s, undertaking/s, declaration/
s etc. that may be required by the Lender.
d. The Borrower shall have furnished a declaration to the effect that the Loan shall be used for
the purposes specified in this Agreement and for no other purpose.
e. Extra-ordinary Circumstances:
No extra- ordinary or other circumstances shall have occurred which shall make it improbable
to the Borrower to fulfill his obligations under this Agreement.
f. Pending Legal Proceedings:
The Borrower shall have furnished a declaration to the effect that there is no action, suit, proceedings or
investigation pending or to the knowledge of the Borrower threatened by or against the Borrower before
any Court of Law or Government authority or any other competent authority which might have a material
effect on the financial and other affairs of the Borrower or which might put into question the validity or
performance of this Loan Agreement or any of its terms and conditions.
- 176 -
ARTICLE - 6
BORROWER COVENANTS
6.1 Particular Affirmative Covenants
a. Utilization of Loan: The Borrower shall utilize the entire Loan for the purposes specified in this
Loan Agreement and unless otherwise agreed to by the Lender in writing for no other purpose
whatsoever.
b. Maintenance of Property : The Borrower shall maintain the residential property in good order
and saleable condition and will make all necessary additions and improvements thereto during
the pendency of the Loan.
c. Compliance with rules etc. and payment of maintenance charges etc: The Borrower shall duly
and punctually comply with all the terms and conditions for holding the residential property and
all the rules, regulations, bye-laws etc., of the concerned Co-operative Society, Association,
company or other authority and pay such maintenance and other charges for the upkeep of
the residential property as also any other dues etc., as may be payable in respect of the
residential property or the use thereof.
d. Insurance: The Borrower at its own expense, insure and keep insured upto the replacement
value thereof as approved by the Lender the residential property against fire, earth quake and
other calamity or hazards and shall- duly pay all premia and sums payable for that purpose.
The insurance shall be taken in the joint name of the Borrower and the Lender. Unless otherwise
agreed by the Lender, the Borrower shall deposit and keep deposited with the Lender the
insurance policy and the renewal thereof.
The Borrower agrees that in the event of failure on his part to insure the property or to pay the
premia, the Lender may, but shall not be obliged to, get the properties insured or pay the
premia or other sum and the Borrower shall forthwith on receipt of a notice of demand from the
Lender, reimburse them all sums so paid by it together with interest thereon at the same rate as
specified in Clause 3.4 hereof and until such reimbursement by the Borrower, the same shall
be debited to the Borrowers Loan account and shall stand secured under the Security created
in terms of Article 4 hereof.
e. Loss/Damage by uncovered risk: The Borrower shall promptly inform the Lender of any material
loss/damage to the residential property which the Borrower may suffer due to any force majeure
or act of God such as flood, explosion, storm, tempest, cyclone, civil commotion, war risk and
other calamities etc against which the property may not have been insured.
f. Notify Additions, Alterations - The Borrower agrees to notify and furnish details of any additions
to or alterations in the residential property which might be proposed to be made during the
pendency of the Loan.
g. The Lenders Right to Inspect - The Borrower agrees that the Lender or any person authorised
by it shall have free access to the residential property for the purpose of inspection at any time
during the pendency of the Loan.
h. Information to be provided: The Borrower agrees that he on his own accord send to the Lender
list of his legal heirs and also information on any person residing with him every year from the
date hereof. However, the Lender shall have the right to require the Borrower to furnish such
other information/ documents as the Lender deems necessary.
i. Change in address - The Borrower shall inform the Lender forthwith as regards any change in
his address for service of notice etc. .
- 177 -
6.2 Negative Covenants:
Unless the Lender expressly otherwise agrees:
a. Possession: The Borrower shall not let out or otherwise howsoever part with the possession of
the residential property or any part thereof.
b. Alienation : The Borrower shall not sell, mortgage, lease, surrender or otherwise howsoever
alienate the residential property or any part thereof or create third party interests in the said
property.
c. Agreements and Arrangements: The Borrower shall not enter into any Agreement or
Arrangement with any person, institution or local or Government body for the use, occupation
or disposal of the residential property or any part thereof during the pendency of the Loan.
d. Change of use: The Borrower shall continue to use the property as his primary residence and
not change residential use of the residential property.
e. Merger: The Borrower shall not amalgamate or merge the residential property with any other
adjacent property nor shall he create any right of way or any other easement on the residential
property .
f. Testamentary Disposition: The Borrower shall not make any testamentary disposition of the
residential property and even if the Borrower does so, it would be subject to the mortgage
created in favour of the Lender. The Borrower shall make a testamentary disposition of the
Mortgaged Premises in favour of his or her relatives subject to the- discharge of the mortgage
debt by such a legatee and a statement that the heirs shall not be entitled to challenge the
validity of the mortgage as also the right of the Lender to enlarge the mortgage in the event of
the death of the Borrower unless the legal representative is willing to undertake the responsibility
for discharging in full the amount of the Loan and accrued interest other charges thereon.
ARTICLE - 7
BORROWER'S WARRANTIES
7.1 The Borrower hereby warrants and undertakes to the Lender as follows:
a. Confirmation of loan application: The Borrower confirms the accuracy of the information given
in his loan application made to the Lender and any prior or subsequent information or explanation
given to the Lender in this behalf and such information shall be deemed to form part of the
representations and warranties on the basis of which the lender has sanctioned the Loan.
b. Disclosure of material changes: Subsequent to the said loan application there has been no
material change which would affect the residential property or the grant of the loan as proposed
in the loan application.
c. Charges and encumbrances: The Borrower has absolute, clear and marketable title to the
residential property and there are no mortgages, charges, lis pendens or liens or other
encumbrances or any rights of way, light or water or other easements or right of support on the
whole or any part of the residential property.
d. Litigation: The Borrower is not a party to any litigation of a material character and that the
Borrower is not aware of any facts likely to give rise to such litigation or to material claims
against the Borrower.
e. Disclosure of defects in property: The Borrower is not aware of any document, judgment or
legal process or other charges or any latent or patent defect affecting the title of the residential
- 178 -
property or of any material defect in the residential property or his title which has remained
undisclosed and/or which may affect the Lender prejudicially.
f. Public schemes affecting the Borrower's property: The residential property is not included in or
affected by any of the scheme of Central/State Government or of the improvement trust or any
other public body or local authority or by any alignment, widening or construction of road under
any scheme of the Central/State Government or of any Corporation, Municipal Committee,
Gram Panchayat, etc.
g. Infringement of local laws: That no suit is pending in the Municipal Magistrate's Court or any
other Court of Law in respect of the residential property nor has the Borrower been served with
any Notice for infringing the provisions of the Municipal Act or any Act relating to local bodies or
Gram Panchayat of Local Authorities or with any other process under any of these Acts.
h. Disclosure of facts: That the Borrower shall disclose all facts relating to the residential property
to the Lender.
i. Due payments of public and other demands: The Borrower has paid all public demands such
as Income Tax and all the other taxes and revenues payable to the Government of India or to
the Government of any State or to any local authority and that at present there are no arrears
of such taxes and revenue due and outstanding.
j. It shall be the Borrower's obligation to keep himself acquainted with the rules of the Lender,
herein referred to, in force from time to time.
ARTICLE - 8
REMEDIES OF THE LENDER
8.1 Foreclosure and Acceleration
If one or more of the events specified in this Article ("events of default") shall have happened, then, the
Lender by a notice in writing to the Borrower, may declare the principal of and all interest accrued on the
Loan under or in terms of this Agreement, as well as other charges and dues due for immediate payment
and upon such declaration the same shall become due and payable forthwith and the security in relation to
the Loan shall immediately become enforceable, notwithstanding anything to the contrary contained in this
Agreement .
8:2 Events of Default
The following shall constitute an Event of Default: 4.1.
a. Performance of Covenants: Default shall have occurred in the performance of any of the
covenants, conditions or agreements on the part of the Borrower under this :
Agreement in respect of the Loan and such default shall have continued over a period of 30
days after notice thereof shall have been given by the Lender to the Borrower, or if the Borrower
fails to inform the Lender of the happening of event of default.
b. Supply of misleading information: Any information given by the Borrower in his loan application
to the Lender for the Loan is found to be misleading or incorrect in any material respect or any
warranty referred to in Article 7 hereof is found to be incorrect.
c. Inability to Pay Debts: If the Borrower becomes bankrupt or insolvent.
d. Sale or Disposal of Security: If the security for the Loan is sold, donated, abandoned, disposed
of, charged, encumbered or alienated by the Borrower.
- 179 -
e. Attachment or Distraint on Property: If an attachment or distraint is levied on the residential
property or any part thereof and/or certificate proceedings are taken or commenced for recovery
of any dues from the Borrower.
f. Failure to furnish information/documents: If the Borrower fails to furnish information/ documents

as required by the Lender.
g. Change in the Security: If the Borrower effects changes in the residential property that affect
the security of the Loan for the Lender or enters into a lease contract or mortgage or creates
a third party interest therein including adding a new owner to the house's title, or taking out a
new debt against the residential property.
h. Public Use: If the government under statutory provisions seeks to acquire the residential property
for public use or use of the, government or condemns the use of the residential property for
residential use for health or safety reasons.
i. Maintenance of Mortgaged Premises: If the Borrower fails to pay property taxes or maintain
and repair the Mortgaged Premises or fails to insure the Mortgaged Premises thereto during
the pendency of the Loan.
8.3 Notice to the Lender on the Happening of an Event of Default
If any event of default or any event which, after the notice or lapse of time or both would constitute an event
of default shall have happened, the Borrower shall forthwith give the Lender notice thereof in writing specifying
such event of default, or of such event.
8.4 Communication with third party, etc.
In the event of default the Lender shall be entitled to communicate, in any manner it may deem fit, to or with
any person or persons with a view to receiving assistance of such person or persons in recovering the
defaulted amounts. Also, representatives of the Lender shall be entitled to visit the property and/or any
place of work of the Borrower.
ARTICLE - 9
WAIVER
Waiver not to impair the rights of the Lender : No delay in exercising or omission to exercise, any right,
power or remedy accruing to the Lender upon any default under this agreement, mortgage deed or any
other agreement or document shall impair any such right, power or remedy or shall be construed to be a
waiver thereof or any acquiescence by it in any default; nor shall the action or inaction of the Lender in
respect of any default or any acquiescence by it in any default affect or impair any right, power or remedy
of the Lender in respect of any other default.
ARTICLE - 10
EFFECTIVE DATE OF AGREEMENT & RIGHT OF RESCISSION
10.1 Agreement to become effective from the date of Execution:
The Agreement shall have become binding on the Borrower and the Lender on and from the date of
execution hereof. It shall be in force till all the monies due and payable to the Lender under this Agreement
are fully paid.
- 180 -
10.2 Right of Rescission :
The Borrowers may cancel the transaction any time before the expiry of third Business Day from the date
of execution of this Agreement (hereinafter referred to as the "right of rescission"). If the Loan has been
disbursed, the entire Loan Amount will need to be repaid by the Borrower within three days period with
such interest as may be advised by the Lender. However, the Lender in its discretion may waive the interest
for the said period.
ARTICLE - 11
GENERAL PROVISIONS
11.1 Variation
No variation of this Agreement shall be binding on any Party unless, and to the extent that such variation is
recorded in a written document executed by such Party, but where any such document exists and is so
signed such Party shall not allege that such document is not binding by virtue of an absence of consideration.
11.2 Severability
If any provision of this Agreement is invalid, unenforceable or prohibited by law, this Agreement shall be
considered divisible as to such provision and such provision, shall be inoperative and shall not be part of
the consideration moving from either Party hereto to the other, and the remainder of this Agreement shall
be valid, binding and of like effect as though such provision was not included herein.
11.3 Force Majeure
Without prejudice to the provisions of this Agreement, the obligations of any Party under this Agreement
shall be suspended while any such Party (the "Affected Party") is prevented or hindered from complying
therewith by any cause beyond the reasonable control of the Affected Party. In such event, the Affected
Party shall give written notice of suspension as soon as reasonably possible to the other Parties (for the
time being) to this Agreement stating the date and extent of such suspension and the cause and likely
duration thereof. If within 48 (forty eight) hours from the receipt of such notice, a Party receiving the notice
requests a meeting of the Parties (for the time being) to this Agreement, then such Parties shall forthwith
and in any event within 14 (fourteen) Business Days meet and discuss the nature and likely duration of the
circumstances and the extent to which performance of the obligations of the Affected Party shall be prevented
or hindered and what action may be taken to ameliorate or remedy the position. Such Party shall take all
reasonable steps within 30 (thirty) Business Days of the force majeure event unless the Parties agree to an
extension of the said period to ameliorate or remedy the position and shall communicate the same to the
other Party. Without prejudice to the foregoing generality the Affected Party shall not unreasonably withhold
its consent to any action suggested by any of such other Parties. For the purposes of this Section, a Force
Majeure event shall include:
a. acts of God, including without limitation fire, storms, floods, earthquake or lightning;
b. war, hostilities, terrorist acts, riots, civil commotion or disturbances, change in governmental
laws, orders or regulations adversely affecting or preventing due performance by either party
of its duties, obligations or responsibilities under his Deed, embargoes, actions by a government,
central or state in India or overseas, or any agency thereof, sabotage, explosions;
c. strikes, lockouts or other concerted industrial action; or
d. any other acts, occurrences, events or circumstances beyond the reasonable control of the
Party affected.
- 181 -
11.4 Notices
Any notice or other communication to be given by one Party to any other Party under, or in connection with,
this Agreement shall be made in writing and signed by or on behalf of the Party giving it. It shall be served
by letter or facsimile transmission (save as otherwise provided herein) and shall be deemed to be duly
given or made when delivered (in the case of personal delivery), at the time of transmission (in the case of
facsimile transmission, provided that the sender has received a receipt indicating proper transmission and
a hard copy of such notice or communication is forthwith sent by prepaid post to the relevant address set
out below) or five days after being despatched in the post, postage prepaid, by the most efficient form of
mail available and by registered mail if available (in the case of a letter) to such party at its address or
facsimile number specified below, or at such other address or facsmile number as such Party may hereafter
specify for such purpose to the other Parties hereto by notice in writing.
The Parties understand that some confidential information may be transmitted over electronic mail and
there are risks associated with the use of electronic mail, which can include the risk of interception, breach
of confidentality, alteration, loss or a delay in transmission, and that information sent by this means may be
susceptible to forgery or distortion and agree to accept the risks of distribution by electronic mail.
ANDHRA BANK
_______________________________ Branch
Address : _____________________________
_____________________________________
Fax :
E-mail :
Attn :
_________________________ Borrower
Address _____________________________
____________________________________
Fax :
E-mail :
Attn :
11.5 Indemnification
Each party hereto indemnifies and agrees to defend and hold the other parties harmless from and against
all liabilities, obligations, losses, expenses, costs, claims and damages (including all legal costs), whether
direct or indirect, asserted against, imposed upon or incurred by such party by reason of or resulting from
any breach or inaccuracy of any representation, warranty or covenant of either party set forth in this
Agreement and / or any breach of any provisions of this Agreement by the other party. The indemnification
rights of each party under this clause are independent of and in addition to such rights to seek specific
performance, rescission, restitution or other injunctive relief, none of these rights or remedies shall be
affected or diminished thereby.
- 182 -
IN WITNESS WHEREOF the Borrower has executed this Agreement and a duplicate hereof on the day,
month and year first hereinabove written and the Lender have caused the same and the said duplicate to
be executed by the hand of Shri _________________________________________________________
its ____________________________ and authorised official.
SIGNED AND DELIVERED BY
Shri _________________________
the within named Borrower.
SIGNED AND DELIVERED by the
within named Lender by the hand of
Shri ______________________________its ________________________ and authorised official.
SCHEDULE - I
(Description of the residential property)
All that piece or parcel of land and hereditaments and premises bearing House No. __________________
______________________________________________________________ admeasuring __________
situated at __________________________________________________________________________
and bounded as follows :
On or towards the West : _____________________
On or towards the East : _____________________
On or towards the South : _____________________
On or towards the North : _____________________
- 183 -
AB 53
BIPARTITE AGREEMENT
(KISAN SAMPATHI)
Andhra Bank
This agreement is made and executed on this .................................... day .................................. 20..........
between Andhra Bank, A Government of India Undertaking constituted under the Banking Companies
(Acquisition and Transfer of Undertakings) Act 1980, having its Head Office at Saifabad, Hyderabad, carrying
on banking business all over India with one of its branch at.......................................... represented by its
Manager and Principal Officer, and hereinafter referred to as the Bank, of ONE PART.
M/s. ........................................................................................., Rural Godown having its registered office
at ........................................................................................................................................................... and
represented by its Managing Director / Partner / Proprietor Mr./Ms .................................................................
and herein after referred to as Godown Owner of the OTHER PART : (the terms Bank and Godown
Owner shall always mean and include wherever the context so occurs or permits each of their respective
successors and Assigns).
Whereas the "Bank" in its ordinary- course of Banking business is extending Kisan Sampathi loan facility
to farmers up to a maximum limit of Rs.2 Lakhs, to help farmers to avoid distress sale of agricultural
produce soon after the harvest, when the prices tend to be low.
Whereas the. "Godown Owner" had offered to accept the agricultural produce of the specified farmers
who are borrowers of the 'BANK' and agreed to store, hold and retain the said goods in trust for and on
behalf of the `BANK' and agree to issue warehouse receipts for the goods stored on the following conditions,
enabling the Bank to provide loan to the farmers under Kisan Sampathi Loan Facility based on such ware
house receipts. Such Loans shall be extended to the borrowers by the Bank strictly in compliance with the
KYC norms, guidelines of the Bank and solely at the Bank's discretion.
Whereas the "Godown Owner" has agreed that he shall collect the godown rent/charge from the farmers
and the Bank shall no way be responsible for the -said rents/charges to the "Godown Owner".
1. The "Godown Owner" hereby agrees to obtain/renew all such approvals/plans/permits/licenses
etc, that a Rural Godown requires and also undertake for proper and safe up keep and maintenance
of goods kept in storage in the Godown.
2. The "Godown Owner" has agreed to receive and accept any kind of agricultural produce from the
specified farmers who are the borrowers of the `BANK' for the purpose of storing/ holding and retaining
the said produce/goods in trust for and on behalf of the 'BANK' in the form of pledge and issue
warehouse receipts for the same, and the farmer borrowers agree to pay rents to the godown owner
for storing their produce, and Bank shall not be liable for the dues of rent.
3. The "Godown Owner" hereby accepts, acknowledges and recognizes the "First charge" of the
Bank over the agricultural produce/goods that are to be deposited by the farmers with the. Godown
and in respect of which Warehouse Receipts are issued. by the Godown. The 'BANK' shall always
have the right to seize, possess, retain and sell the goods stored/deposited- with the godown for
- 184 -
which the "Godown Owner" has issued Ware House Receipts, based on which Bank has extended
Loan to the borrowers, for recovery of bank dues independent of the other modes of recovery
of dues.
4. The "Godown Owner" hereby assures that under no circumstances duplicate warehouse receipts
/ multiple receipts will be issued against the same stored stocks.
5. The "Godown Owner" hereby agrees to store the goods held on BANK's behalf separately and
with proper demarcation, for easy identification & inspection by the Bank.
6. The "Godown Owner" hereby agrees that the goods stored in the Godown which are of the same
quality and kind shall not be commingled and stored as one general lot of fungible-goods unless
specifically permitted by the "Bank". In case Bank permits commingling of goods then the "Bank"
shall be entitled to such portion of goods forming part of the warehouse receipts.
7. The "Godown Owner" has agreed to specify the name of the person authorized to sign the warehouse
receipts issued by the Godown and his specimen signature duly attested by the competent authority
is made available to the Bank for verification before financing against such warehouse receipts.
8. The "Godown Owner" has agreed to take full and proper care of the goods deposited with them by
the farmer borrowers of the 'BANK' and are kept in good condition by taking necessary precautions
to avoid spoiling/damage of stocks.
9. The "Godown Owner" hereby agrees that the warehouse Receipts issued by the Godown shall
inter alia mention the shelf life of the goods after assessment is made by the "Godown Owner".
10. The "Godown Owner" hereby undertakes to take up proper housekeeping, fumigation, post
fumigation and rodent control measures from time to time so as to enhance the shelf life of goods
indicated in the warehouse Receipts.
11. The "Godown Owner" further agrees to keep the 'BANK' indemnified at all times against any loss,
destruction and damages caused to any of the goods pledged/deposited or to be deposited with the
"Godown" and held in trust for and on behalf of the 'BANK'.
12. In consideration of the "Bank" having agreed to finance against warehouse receipts issued by the
Rural Godown M/s.......................................................................... the Godown Owner hereby
unconditionally agrees to hold the Bank harmless and fully indemnified for all consequences and loss
suffered by the Bank including all costs, charges and legal expenses in case of detection of bogus
warehouse receipts, or detection of bogus borrowers, 'or warehouse receipts issued by unauthorised
persons of the Godown.
13. The Godown Owner has agreed to comprehensively insure the Godown, plant & building from-
time to time against all risks including theft, fire, burglary, riot, damages due to electricity failure and
keep the coverage always in force without any break in-period.
14. The "Godown Owner" has agreed to insure primary security of stocks stored by the farmer borrower
in the Godown to its full value duly incorporating the `BANK' s clause in the insurance policy.
15. The "Godown Owner" hereby agrees that the officer/ employees and authorized agents of the
'BANK' shall be at liberty at all times without any notice to the Godown Owner to have free access, to
enter the Rural Godown and to inspect and/or to take inventory of the said goods which are deposited
by the borrowers of the Bank and to take possession or to demand redelivery and to remove all or
part of the said agricultural produce/goods at the sole discretion of the 'BANK'.
- 185 -
16. The "Godown Owner" hereby undertakes and agrees that they will not deliver the goods to the
specified borrower or their representative or to their agents at any time except with the written consent
and return of the duly discharged Warehouse Receipts by the Bank.
17. The "Godown Owner" hereby agrees to display BANK's Name Board at the place where stocks
stored by the specified borrowers of the `BANK' are kept.
18. The "Godown Owner" hereby agrees to submit stock statement on fortnightly basis to the Bank,
containing the particulars of stocks for which Warehouse receipts are issued, and Bank extended
Finance, i.e. Ware House Receipt No. Date, stocks stored, quantity & value of stocks stored, insurance
particulars to bank for review.
19. The "Godown Owner" hereby accepts to undertake not to make a claim of priority over the goods
stored, delivered / or to be delivered by the specified borrowers of the 'BANK' to them in realization or
recovery of any kind including godown rent + storage charges or manner of dues to the Rural Godown
from the respective specified borrowers of the 'BANK' for violation or breach of any of the terms and
condition of the contract of acceptance of the goods between the Rural Godown and the specified
borrowers of the 'BANK'.
20. The "Godown Owner" hereby makes it explicitly clear that the warehouse receipts issued by the
rural godown to the farmer borrowers of the `BANK' would be held and retained by the duly signed
by the depositor / borrower till such time the BANK dues are realized or recovered.
21. Either party may terminate the agreement at any time by giving at least .............................................
days of written notice to the other party of its intention to terminate.
22. The Godown owner do hereby declare and state that all the information and data furnished by them
for extension of credit facility by the Bank are true and correct. They unconditionally and irrevocably
agree and give his / her / their consent for disclosure of all / any of the information and data relating
to them by the Bank including the Credit facility availed / to be availed by the respective borrowers to
Credit Information Bureau (India) Ltd and / or any other agency / Reserve Bank of India / and or any
other person or agency entitled to such information. They further unconditionally and irrevocably
agree that in case he / she / they commit(s) default in any of the obligations under these presents,
the Bank and / or the Reserve Bank of India / CIBIL or any other agency authorized to collect such
information will have an unqualified right to disclose or publish his / her / their name(s) and photographs
as defaulters in such manner and through such medium as the Bank or the Reserve Bank of India or
CIBIL or any other agency authorized in their absolute discretion may think fit.
In witness whereof the Bank and the Godown Owner have signed this agreement on the...................
day of .................................................. (month and year).
Bank Godown Owner
for ANDHRA BANK For M/s. ................................. Rural Godown
- 186 -
Form No.
Self Help Group - Savings Bank Account Opening Form

To : For Official Use Only
The Branch Manager SB A/c No.
Andhra Bank
Customer ID
________________________ Branch
SHG Scheme Code
(NRLM / Others)
Sub : Application for SHG-SB A/c Opening SHG Gender Code
Dear Madam / Sir, (Male / Female)
1. We request you to open a Savings Bank Account in name of our Self Help Group. We agree to abide by the
rules and regulation of the bank related to Savings Account.
Name of SHG
Date of Number of Name of Facilitating
Formation Members Agency (if any)
Address Street _______________Village / City ____________Gram Panchayat _________________
Block ______________________District ____________________Pin __________________
2. The Savings Account may be operated by joint signature of any two among the following representatives of our
Self Help Group. A copy of resolution taken by our Self Help Group in this regard is attached.
3. Request for Cheque Book : Yes / No
Affix Passport Affix Passport Affix Passport

size photograph size photograph size photograph
Name : Name : Name :

Date of Birth : Age : Date of Birth : Age : Date of Birth : Age :
Bank Verification
Designation : Designation : Designation :

Address : Address : Address :
Mobile : Mobile : Mobile :

KYC Documents Provided KYC Documents Provided KYC Documents Provided
Enclosed Copy of Address & ID Proof Enclosed Copy of Address & ID Proof Enclosed Copy of Address & ID Proof
Voter ID Driving License Voter ID Driving License Voter ID Driving License
Aadhar Card Job Card Aadhar Card Job Card Aadhar Card Job Card
PAN Card Passport PAN Card Passport PAN Card Passport
Any other document accepted Any other document accepted Any other document accepted
by Bank (specify) .................. by Bank (specify) ............... by Bank (specify) ................
Specimen Signature / Thumb Impression Specimen Signature / Thumb Impression Specimen Signature / Thumb Impression
- 187 -
4. We hereby declare that the above information is true and correct. We have agreed to the terms and conditions
and also agree to abide by any amendments to the terms and conditions as may be stipulated by the Bank
from time to time.
Yours faithfully,
1. _______________________ 2. _______________________ 3. _____________________________

(Signature/Thumb Impression of SHG Representatives with Seal of SHG)
Date : _________________ Place : __________________________
Enclosure:
i. Copy of Resolution by Self Help Group to open Savings Account

ii. Photographs of authorized representatives
iii. Copy of ID and address proof of authorized representatives.
For Bank Use Only
1. The applicant has affixed his signature or thumb print, as the case may be, in my presence
2. I have explained the rules / regulations to the applicant ______________________________
3. Account has been opened on __________________________________________________
4. Cheque Book has been issued.
Date:__________________ Officer _____________________________
- 188 -
Resolution by Self Help Group for Opening Savings Account
Name of SHG : __________________________________________________________________________
Address : __________________________________________________________________________
Date of Formation : __________________________________________________________________________
Total No. of Members : _______________________ Name of Facilitating Agency :_________________________
-------------------------------------------------------------------------------------------------------------------------------------------------------------------
Resolution for Opening Savings Bank Account
Today on _______________ (Date), at the meeting of ____________________________________ (name of SHG)
at ______________________ (meeting place of SHG / address) in presence of all its members, it is resolved that
our ____________________________________________________________________ (name of SHG) will open a
Savings Bank A/c in Andhra Bank _____________________________________ Branch. It has also been further
resolved that Shri/Smt ______________________________________ (Designation _______________________ );
Shri/ Smt ________________________________________ (Designation _____________________________) and
Shri/ Smt _____________________________(Designation ______________________ ) will sign all the necessary
document related to the opening of Savings Accountas representatives on behalf of ___________________ (name
of SHG). Transaction in the Savings A/c of the group will be done by joint signature of any two among the above
mentioned representatives.
We, all members hereby agree to the above decision.
Sl Gender Signature/
Name of SHG Name of Occu- Date Aadhar
No Male/ Address Thumb
Members Father/Husband Female pation of Birth Card No. Impression
1
2
3
4
5
6
7
8
9
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Signature / Thumb Impression Signature / Thumb Impression Signature / Thumb Impression

(Designation .....) (Designation .....) (Designation .....)
Seal of Self Help Group
- 189 -
Acknowledgement
(To be handed over to SHG after submission of the Application Form)
Received the following Application form for loan
Name of SHG
Address
Application No
Savings Account No
Date of Receipt of Application by branch
Signature ____________________________
Branch ____________________________
Bank ____________________________
- 190 -
For Official Use Only
Customer ID
Form No. Loan A/c No.
Bank Loan Type (CC/TL) Cash Credit
Branch Term Loan
Product Code
Date of Sanction
Sanctioned Amount in `
Loan Term
Self Help Group Loan Application Form
Name of the SHG

Date of Formation No of SHG members
Address Village / City : Block
GP : District:
SB A/c. No
Loan A/c No (if any)
Supporting Agency (if any)
Application for Loan Cycle
- 191 -
Self Help Group Loan Application Form
To:
The Branch Manager

_______________________________ Bank
_______________________________ Branch
Dear Madam / Sir,
Sub: - Application for Credit Linkage
Affix Passport Affix Passport Affix Passport

size photograph size photograph size photograph
Name : Name : Name :

Designation : Designation : Designation :
Address : Address : Address :
Mobile : Mobile : Mobile :
1. We, the duly authorized representatives of ______________________________________________ (name of SHG)

__________________village/city_____________________Block_________________District hereby apply for a loan
aggregating ` __________________/- (Rupees _______________________________________________only) by
way of Cash Credit (CC) / Term Loan (TL) for on-lending to our members. A copy of resolution taken by our Self Help
Group in this regard is attached.
2. A copy of the member-wise requirement of loan is enclosed (Compulsory from 3rd linkage onwards)
3. We agree to repay the loan amount as per the repayment schedule which may be fixed by the Bank.
4. A copy of the Inter-se Agreement executed by all the members of the group authorizing us inter alia to borrow on behalf
of the SHG is enclosed.
5. We hereby declare that the particulars given above are true and correct to the best of our knowledge and belief.
6. We hereby authorize the Bank to disclose all or any particulars or details or information relating to our loan accounts
with the Bank, to any other financial institution including NABARD, Government or any agency as may be considered
necessary or desirable by the Bank. It will be in order for the Bank to disqualify the SHG from receiving any credit
facilities from the Bank and or recall the entire loan amount or any part thereof granted on this application, if any of the
information pertaining to the group, furnished herewith is found incorrect and/or containing misrepresentation of facts.
7. A copy of the financial status of our SHG as on .. (date) is attached.
Yours faithfully,
1.
2.
3
[Signature of Authorized Representatives of SHG with Seal]
- 192 -
Resolution for Taking Loan From Bank
Name of SHG : __________________________________________________________________________
Address : __________________________________________________________________________
Date of Formation : __________________________________________________________________________
Total No. of Members : ___________________________ Name of Facilitating Agency :______________________
-------------------------------------------------------------------------------------------------------------------------------------------------------------------
Resolution for Taking Loan From Bank
Today on _______________ (Date), at the meeting of ___________________________________ (name of SHG)
at _________________________ (meeting place of SHG / address) in presence of all its members, it is resolved that
our ________________________________________________ (name of SHG) will seek loan of ` ________________
in words______________________________________________________________________ from (Name of Bank)
It has also been further resolved that Shri/Smt _______________________________________________________
(Designation _________________________ ); Shri/ Smt _________________________________________________
(Designation _________________________) and Shri/ Smt ______________________________________________
(Designation ___________________) will sign all the necessary document related to the loan application to bank on
behalf of the __________________________ (name of SHG).
We, all members hereby agree to the above decision.
Sl Gender Signature/
Name of SHG Name of Occu- Date Aadhar
No Male/ Address Thumb
Members Father/Husband Female pation of Birth Card No. Impression
1
2
3
4
5
6
7
8
9
10
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20
Signature / Thumb Impression Signature / Thumb Impression Signature / Thumb Impression

(Designation .....) (Designation .....) (Designation .....)
- 193 -
Details of Member wise Loan Requirement (As per Micro Credit Plan)
(Compulsory from 3rd credit linkage onwards)
Name of the SHG : __________________________________________________________________________
Date of formation : ____________________________________________ No. of Members: _______________
Address ___________________________________________________________________________________
Member-wise details of proposed investment, sources of fund & resultant Net Surplus of the family
Total
Annual Annual
Amount of Income Total Annual
repayment
loan from various Annual net income
for the Annual
Sl Name of Purpose of Required sources:- Expenditure before
proposed Surplus
No Member* investment from SHG (`) repayment
IGAs, loan & (`)
(Rs.) of loan
Wages, existing
Grants from installment
loan, if any
Govt. etc. (`)
(`)
(`)
1
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8
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19
20
(*) To be written in order of priority & rotation plan as decided in SHG meeting
- 194 -
Financial Statement of ......................................................... (Name of SHG) as on ..........................(date)
Particulars Amount (`)

Total Savings of Members
Total interest and other incomes :

Revolving Fund / Grant Assistance received from project / department / other agencies
Other Receipts (Specify...................................................................................)
TOTAL
(Amount in words ........................................................................................................................................)
We certify that the above statement is true and can be verified from the books of accounts maintained by our
Self Help Group.
Signature Signature Signature
(Designation ..........................) (Designation .........................) (Designation ......................)
- 195 -
Format 1: SHG Grading format for Fresh Linkage
A. Basic Information:
Name of the SHG:
Village: Gram Panchayat:Block:District:....
Date of formation of the SHG:... Date of opening of Bank S/B A/C:....
Period considered for Grading: From.to.....
(Usually last 6 months)
B. Details of Grading /Evaluation Exercise:
g
S.N. Indicator Allotted Formula for determining Marks Marks
Marks obtained
1 Regularity of Meeting:
(a) Regularity of holding No. of meetings held X 10
10
meetings by SHG No. of meetings required to be held as per rule of SHG
(b) Regularity of Attendance of Average no. of members attended the meetings X 10
10
members in the meetings Total no. of members of the SHG
2 Regularity of Savings by Amount of savings deposited by the members X 10
10
members Amount of savings required to be deposited as per rule of SHG
3 *Velocity of Lending to More than 1.5 :- 20
members from Group Corpus More than 1.0 up to 1.5:- 15
20 More than 0.5 up to 1.0:- 10
More than 0.2 up to 0.5:- 5
Up to 0.2:- 0
4 Regularity in Repayment of Amount of recovery against Demand X 20
20
loan by members Amount of Demand (required to be paid as per repayment schedule)
5 Updated Record keeping:
a) Resolution Book 4
b) Cash Book 8 Maintained up to date :- Full marks
c) Savings Ledger 4 Maintained , but not up to date:- Half Marks
d) Loan Ledger 4 Not maintained:- 0 (no Mark)
e) General Ledger 6
f) Individual Pass Book 4
Total 100
*Velocity of lending from Group Corpus= Amount lent to the members from Group Corpus
Average amount of Group Corpus
x A Grade: 80 or more marks

x B Grade: 70-79 marks
x C Grade: 60-69 marks
x D Grade: less than 60 marks
Only A & B graded SHGs are to be considered for credit linkage
- 196 -
Format 2: SHG Grading format for Repeat Linkage
A. Basic Information:
Name of the SHG:
Village: Gram Panchayat:Block:District:....
Date of formation of the SHG:... Date of opening of Bank S/B A/C:....
Period considered for Grading: From.to.....
(Usually last 6 months)
S.N. Indicator Allotted Formula for determining Marks Marks
Marks obtained
1 Regularity of Meeting:
(a) Regularity of holding meetings No. of meetings held X 5
5
by SHG No. of meetings required to be held as per rule of SHG
(b) Regularity of Attendance of Average no. of members attended the meetings X 5
members in the meetings 5 Total no. of members of the SHG
2 Regularity of Savings by Amount of savings deposited by the members X 10
10
members Amount of savings required to be deposited as per rule of SHG
3 *Velocity of Lending to More than 1.5 : 10
members from Group Corpus More than 1.0 up to 1.5 - 7
10 More than 0.5 up to 1.0: 5
More than 0.2 up to 0.5: 2
Up to 02: 0
4 Regularity in Repayment of Amount of recovery against Demand X 15
loan by members 15 Amount of Demand (required to be paid as per repayment
schedule)
5 Updated Record keeping:
a) Meeting Resolution Book 4
b) Cash Book 8
c) Savings Ledger 4 Maintained up to date :- Full marks
d) Loan Ledger 4 Maintained , but not up to date:- Half Marks
e) General Ledger 6 Not maintained:- 0 (no Mark)
f) Individual Pass Book 4
Operations in Cash Credit/ Term loan A/c and Credit history:
i) 12 or more:- 10
a) Number of transactions in last
10 ii) 6 to less than 12 :- 6
12 months( Dr. & Cr.)
ii) Less than 6 :- 0
i) Within 1 month :- 10
6 b) Servicing of interest charged
10 ii) Within 2 month:- 6
in CC A/c
iii) After 2 months:- 0
c) Occasions of overdrawing in
i) Never :- 5
CC A/c due to charging of
5 ii) On 2 occasions :- 3
interest etc. during last 12
months iii) On more than 2 occasions :- 0
Total 100
*Velocity of lending from Group Corpus= Amount lent to the members from Group Corpus
Average amount of Group Corpus
x A Grade: 80 or more marks
x B Grade: 70-79 marks
x C Grade: 60-69 marks
x D Grade: less than 60 marks
Only A & B graded SHGs are to be considered for enhancement of CC limit / repeat dose of T/L
- 197 -
Appraisal Note cum Sanction Order of Bank Branch
For Financing Self-Help-Group
* Credit Linkage (CC / TL) / *Renewal of CC limit /*Enhancement of CC limit / *Repeat TL
(*Strike out which is not applicable)
Basic Details of SHG
1. Name of the Bank:..................................
2. Name of the Branch:..................................
3. Name of the Processing / Inspecting Loan Officer:...............................
4. Date of Processing/Inspection:................................
5. Name of the SHG:...............................
6. Address of the SHG:...............................
7. Date of formation of the SHG:...............................
8. No. of members in SHG:...............................
9. Facilitating Agency (if any):...............................
10. S/B A/C No..............................
11. CC A/C No. (in case of already CC-linked SHG):.................................
Assessment of SHG
1. Whether the SHG has completed 6 months from the date of formation / 12 months from the date of last
sanction: Yes / No (*Strike out which is not applicable)
2. Whether the SHG has been Graded /Evaluated: Yes / No (*Strike out which is not applicable)
3. Whether the SHG has passed the Grading / Evaluation Exercise: Yes / No (*Strike out which is not applicable
4. % of Marks obtained in the Grading / Evaluation Exercise:.............................................................
5. Financial position of the SHG( as on .......................):
Liabilities Assets
Particulars Amount Particulars Amount
Outstanding C/C of Bank Cash in hand
Outstanding T/L of Bank Deposit with Bank
Outstanding loan of VO/Federation Deposit with Federation
Savings of members Loan outstanding from members
Other Liabilities (Specify) Other Assets (Specify.. ..)
Surplus
Total Total
Existing Corpus of SHG = ` [ Total Assets Outstanding loans (if any)]

Assessment of eligibility CC Limit / TL to be sanctioned to the SHG:
No. of dose Eligibility Eligible Amount Amount Proposed
of credit * (As per RBI guidelines) to be Sanctioned
Fresh a) Existing Corpus = ` .... 4-8 time of total Corpus or `
Linkage (1st b) Proposed savings for remaining minimum ` 50,000 whichever is
dose) part of the year = ` higher
Total Corpus = ` [(a) + (b)]
2nd Dose a) Existing Corpus = ` .. 5-10 time of total Corpus or ` .
b) Proposed savings for next 12 minimum ` 100,000 whichever is
months = `.. higher
Total Corpus = ` .[(a) + (b)]
3rd Dose Minimum ` 200,000 as per Micro ` .
Credit Plan
4th Dose ` 500,000- ` 10,00,000 as per ` .
Micro Credit Plan
(*Strike out which is not applicable)
- 198 -
Terms of Sanction:
Sanctioned a new Cash Credit limit / Renewed / Enhanced the existing Cash Credit limit / Repeat Term Loan
for RsRupees...only)
under the following terms & conditions:-
(a) Amount of CC limit / TL (New /Renewed/ Enhanced / Repeat) for (period in months):
Rs. (Rupees only)
(b) Documents to be obtained:

i. Inter-se agreement
ii. Articles of loan agreement
iii. Demand Promissory Note
(c) Purpose of the credit facility: On-lending to the members of the SHG
(d) Rate of interest: ..% p.a.to be calculated on reducing balance method withmonthly rest. The
SHG will be eligible to get the benefit of interest subsidy if it fulfil the norms as specified by
Government in this regard.
(e) Service charge: Nil (Loan to SHG is treated as advance to weaker section).
(f) Repayment:
i. For CC: Each withdrawal of principal loan from the C.C. A/C is to be repaid
within.(12-24) months of such withdrawal. Interest debited to the A/C
is to be repaid / deposited promptly so that outstanding balance of the CC A/C does
not exceed the sanctioned limit under no circumstances.
ii. For TL: Principal loan is to be repaid in .equal monthly / quarterly / half-
yearly instalments. Interest debited to the A/C is to be repaid / deposited promptly.
(g) Review / Evaluation of the C/C A/C will be done after 12 months.
. ..
Signature of the Processing / Appraising Officer Signature of the Branch Manager

(With Office Seal)
Date:- Date:-
We, on behalf of SHG hereby accept the aforesaid terms & conditions of
the above-noted CC facility / Term loam sanctioned to our SHG by the above-mentioned Bank Branch.
1.
2.
3.
[Signature of Authorized representatives of the SHG with office seal]
Date:
Place:
- 199 -
ARRANGEMENT LETTER ACKNOWLEDGE BY SHG
We the Andhra Bank ............................................... Branch has Sanctioned a New Cash Credit limit / Renewed /
Enhanced the existing Cash Credit limit / Repeat Term Loan for ` .....................(Rupees ...................................
..................................................................... only) to ...................................... (Name of SHG) under the following
terms and conditions :
(a) Amount of CC limit / TL (New / Renewed / Enhanced / Repeat) for ................................... (period in months)
` .............................. (Rupees ........................................................................................................... only)
(b) Documents to be obtained :

i) Inter-se-agreement
ii) Articles of loan agreement
iii) Demand Promissory Note / DP Note delivery letter
(c) Purpose of the credit facility : On-lending to the members of the SHG
(d) Rate of interest ............ % above / below base rate minimum ............% p.a. subject to change in base rate
from time to time to be calculated on reducing balance method with monthly / qtly / hlf yearly rests. The SHG will
be eligible to get the benefit of interest subsidy if it fulfill the norms as specified by Government in this regard.
(e) Service charge : Nil (Loan to SHG is treated as advance to weaker section)
(f) Repayment :
i. For CC Each withdrawal of principal loan from C.C. A/c is to be repaid within ..........................................
(12 - 24) months of such withdrawal. Interest debited to the A/c is to be repaid / deposited promptly so that
outstanding of the CC A/c does not exceed the sanctioned limit under no circumstances.
ii. For TL : Principal loan is to be repaid in ..................... equal monthly / quarterly / half-yearly instalments.
Interest debited to the A/c is to be repaid / deposited promptly.
(g) Review / Evaluation of the CC A/c will be done after 12 months.
......................................
Signature of the Branch Manager (With Office Seal)
Date :
We, on behalf of ........................................................... SHG hereby accept the aforesaid terms and conditions
of the above noted CC facility / Term Loan sanctioned to our SHG by the above Mentioned Bank Branch.
1.
2.
3.
(Signature of Authorized representatives of the SHG with office seal)
Place :
Date :
- 200 -
AB - 54
ARTICLES OF LOAN AGREEMENT

(FINANCING SELF-HELP GROUPS)
The Articles of Agreement made on this _________________ day of ____________20__ at ____________
By and Between M/s __________________________________________________ [name of the SHG]
an unregistered association of persons/individuals having its office at ____________________________
_______________________________________________represented by its authorized representative
Shri/Smt.___________________________ (Name) _______________________________ (Designation);
Shri/Smt.___________________________ (Name) _______________________________ (Designation);
and Shri/Smt._______________________________(Name)_______________________ (Designation,
who are fully authorized by all the members of the SHG, ( a copy of such Authorization is annexed hereto
and forms part of this agreement), hereinafter referred to as the Borrower which expression shall unless
repugnant to the subject or context thereof, mean and include members of the unregistered association
for the time being, their respective successors, legal heirs, administrators and assigns of the one part
and Andhra Bank, a banking company constituted under the Banking Companies (Acquisitions and
transfers of undertaking) Act, 1980 having its Head Office at 5-9-11, Dr. Pattabhi Bhavan, Secretariat
Road, Saifabad, Hyderabad - 500 004 and among others, a Branch _______________________________
herein after called the Bank which expression shall unless repugnant to the subject or context thereof
mean and include its successors and assignees of the second part.
Whereas the borrower is an unregistered association of persons who have inter-se agreed to help each
other as self-help group with a view to developing and ameliorating the socio-economic conditions of
their members.
Whereas having formed the association as a Self Help Group, the Borrower as per application
dated ________________ made by the said Shri Smt.________________________________________
(Name)_______________________ (Designation); Shri/Smt.___________________________________
(Name)____________________(Designation) and Shri/Smt.___________________________________
(Name)_________________________ (Designation, duly authorized to borrow in terms of its resolution
dated _________________ [copy enclosed] requested the Bank to *grant a Demand Loan / Term Loan
extend Cash Credit facility* of ` __________________ /- up to the limit of ` ___________________ /-
(Rupees _________________________________________________ only) for on-lending to its members.
And whereas the Bank has agreed to grant the * Demand Loan / Term Loan /extend Cash Credit facility*
to the borrower on certain terms and conditions.(*delete whichever is not applicable)
And whereas the Bank and the borrower are desirous of reducing the agreed terms into writing.
Now, therefore, this agreement witnesses as follows:
1. The Bank has agreed to grant and the borrower has agreed to borrow by way of Demand Loan / Term
Loan / Cash Credit (clean) up to the limit of ` __________/- (Rupees ________________________
_______________________________only) and the Bank has opened (SPECIFY THE KIND OF LOAN
ACCOUNT) ________________________________________ A/c No.________________________
of date ______________in the name of the Borrower in its book of accounts.
- 201 -
2. *In case the facility availed is Cash Credit the Borrowers will operate the Cash Credit account
satisfactorily and within the limit and the Borrower shall repay the outstanding liability in the account
inclusive of interest and other charges debited from time to time on demand without demur.
3. *In case loan availed is Demand Loan, without prejudice to the right of the Bank to recall the loan on
demand the Borrower undertakes to repay the loan with interest and other within the period stipulated
in terms of sanction.
4. *In case the credit facility availed of by the borrower is a Term Loan the same shall be repayable in
installments in the manner specified herein-below in the repayment schedule. (to be specified) Besides
the borrower will pay interest at the rates that may be prescribed for such lending by RBI/NABARD
from time to time. (*Delete whichever is not applicable)
5. It is clearly understood by and between the parties hereto that in the event of the borrowers failure
to utilize the proceeds of the credit facility for the purpose for which the same has been made
available by the bank to the borrower, the borrower shall repay immediately on demand without
demur together with interest without prejudice to Banks right to initiate other legal action.
6. The borrower shall pay interest on the loans to be calculated on the daily balances in the loan
account and be debited thereto at quarterly rests or as the Bank may decide.
7. The borrower should utilize the proceeds of the credit facility for the purpose of lending to its members
to improve the socio-economic conditions of their members and their families.That the loan will not
be used for any Speculative purpose / activities prohibited by law.
8. The borrower shall repay the credit facility availed of together with interest payable as per the
interest rates that may be fixed by RBI/NABARD from time to time for such lending
9. The borrower shall be liable to repay the facility on demand together with the interest and other
charges payable by the borrower to the bank in accordance with the rules of the Bank.
10. That the interest at the rate of BR + (Plus) ________ per cent per annum (plus ________ per cent
term premia) i.e. ______ per cent per annum at present with monthly / quarterly / half-yearly /
Yearly rests shall be calculated on the daily balance due to the Bank on the said account and shall
be charged on the account on the last working day of the month so long as the debt herein incurred
is not paid by Borrower(s) in its entirely and, will form part of principal and carry interest at the
above mentioned rate.
11. The borrowers shall be liable to pay overdue interest at the rate of _______________ or at the rate
as may be fixed by the bank from time to time in the event of failure to repay the facility availed in
the stipulated manner and / or failure to pay interest as stipulated.
12. The Bank will always be at liberty to stop making fresh advances at any time without previous
notice, which notice is hereby expressly waived, and without assigning any reason even though the
said limit has not been fully availed of.
13. The borrowers, give their consent for the loans recovered from the assets hypothecated hereunder
and / or other assets as a public demand or as land revenue in terms of any legislation relating to
recoveries thereof, where such consent is necessary under such legislation.
14. (i) The Borrower(s) understand(s) that as a pre-condition, relating to grant of loan/advances/other
non-fund based credit facilities to the Borrower(s), the Bank requires their consent for disclosure
by the Bank of, information and data relating to the Borrower(s), of the credit facilities availed /
to be availed, by the Borrower(s) obligations assumed / to be assumed, by the Borrower(s), in
relation thereof and default, if any committed by the Borrower(s), in discharge thereof
(ii) Accordingly, the Borrower(s), hereby agree(s) and give(s) consent for the disclosure by the bank
of all or any such;
- 202 -
(a) information and data relating to the borrower(s)
(b) the information or data relating to any credit facility availed of / to be availed, by the borrower(s)
and
(c) default. if any, committed by the borrower(s), in discharge of his/her/their such obligation, as
the Bank may deem appropriate and necessary, to disclose and furnish to Credit Information
Bureau (India) Ltd. and any other Agency authorized in this behalf by Reserve Bank of India
(RBI).
(iii) The Borrower(s) declare(s) that the information and data furnished by the Borrower(s) to the Bank
are true and correct.
(iv) The Borrower(s) undertake(s) that:-
(a) The Credit Information Bureau (India) Ltd. and any other Agency so authorized may use, process
the said information and data disclosed by the Bank in the matter as deem fit by them,
(b) The Credit Information Bureau (India) Ltd. and any other Agency so authorized may furnish for
consideration, the processed information and data or products thereof prepared by them to
banks/financial institutions and other credit grantors or registered users as may be specified by
RBI in this behalf.
15. The Borrowers hereby agree as a pre-condition of the loan/advances given to them by the Bank
that in case they commit default in the repayment of loan/advance or in the repayment of interest
thereon or any of the agreed instalments of the loan on the due date(s). the Bank and/or the
Reserve Bank of India will have an unqualified right to disclose their name(s) as defaulters in such
manner and through such medium as the Bank or Reserve Bank of India in their absolute discretion
may think fit.
REPAYMENT SCHEDULE:
For Cash Credit: Each withdrawal of principal loan from the C.C. A/c is to be repaid within 12 months of
such withdrawal. Interest debited to A/c is to be repaid / deposited into the A/c promptly so that outstanding
balance of the CC A/c does not exceed the sanctioned limit under no circumstances.
For Term Loan: Principal loan is to be repaid in ______ equal monthly / quarterly / half-yearly installments.
Interest debited to the A/c is to be repaid / deposited promptly.
In witness where of the parties hereto have affixed their signature on the _______________ date and
the _________________ month and _______________________ year first herein above written.
1) FOR THE BORROWER- SHG 2) FOR THE BANK

1.
2.
3.
[Signature of Authorized representatives [Signature of Authorized representative

(Office bearers) with office seal] (Branch Manager) with office seal
- 203 -
AB - 55
INTER-SE AGREEMENT TO BE EXECUTED BY THE MEMBERS
OF THE SELF HELP GROUP
THIS AGREEMENT made on this ____________________day of ____________________ 20________ BETWEEN
Sl Name of Father / Gender

Members Name Age
No. Husband Male / Female
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
who are members of the ___________________________________ group, hereinafter referred to

collectively as The Self Help Group (SHG) Members which expression shall, unless repugnant to the
context or meaning, include every members of the said SHG and their respective legal heirs, executors and
administrators.
WHEREAS all SHG members are residents of ................................... Village/ City ..............
in ................................................Block of ....... District of .......State and are known
to each other.
WHEREAS the SHG members above named have joined voluntarily together and formed the SHG with
intent to carry on savings and credit and other economic activities for mutual benefit subject to the terms
and conditions hereinafter appearing:
NOW THEREFORE THIS AGREEMENT WITNESSETH THAT :-
1. Each member of the SHG shall save a sum of ` _______________ (Rupees_______________
_____________________________________________________ only) or such sum as may be
decided by the Group, on (weekly/fortnightly/monthly) basis during the scheduled SHG meeting which
shall be deposited with the authorised member(s) / representative of the group. The accumulated
corpus of the SHG shall be given on loan to members based on their need and recovered along with
interest as decided by the SHG members.
- 204 -
2. The SHG will take the responsibility for maintaining appropriate books of accounts to ensure
transparency in transaction among SHG members.
3. Each member shall strive for the success of the SHG and shall not act in any manner detrimental to the
business interests of the SHG.
4. The SHG members shall be jointly and severally liable for all the debts contracted by theSHG.
5. All assets and goods acquired by the SHG shall be in the joint ownership of all the members of the SHG
and shall ordinarily be in the constructive custody of such member asmay be authorized by the Group
and shall be kept at the place of business at_________________________ which shall not be changed
without consent of the SHG members.
6. The SHG members hereby duly elect and appoint
Shri/Smt/Kum.________________________________ as _________________________________,
Shri/Smt/Kum ________________________________ as _________________________________
Shri/Smt/Kum ________________________________ as _________________________________
to look after and manage the day to day affairs of the SHGs activities and also act in their name and on
their behalf in all matters relating thereto. The authorized representatives, may however, be removed
at any time by majority vote of the members and new representatives elected.
7. Each of the SHG members hereby agrees to abide by and ratify all such act, deeds and things as the
authorized representatives may do in the interest of the said activities.
8. The authorized representatives shall take decisions in the day to day working of the SHG and each
representative shall actively involve herself / himself and co-operate in looking after the day-to-day
affairs of the SHG activities in particular to attend to the following activities.
- Every member of the SHG hereby authorizes the representatives to apply for the loan on behalf of the
SHG and execute necessary agreements/documents on behalf of the SHG for the purpose. The
authorized representative may collect loan amounts from the bank on behalf of SHG, deposit the same
in the savings account of the SHG for on-lending to members in accordance with the decision of the
SHG and also deposit recovery of loan installment from members in the loan account/s of SHG with the
bank.
9. The SHG members hereby specifically authorize the representatives:-
i. To open Savings, Fixed Deposits and other accounts in ____________________Branch of
____________________ Bank approved by the SHG and operate the same under the joint
signature of any two of the following authorized representatives:
Shri/Smt/Kum__________________________________________________________________
Shri/Smt/Kum__________________________________________________________________
Shri/Smt/Kum__________________________________________________________________
ii. To keep or cause to be kept proper books of accounts of the savings, made by the SHG Members,
loans granted to them and the recoveries made from them and render every year accounts to the
SHG members for their approval and adoption;
iii. To receive all payments due to the SHG and issue requisite receipts or acknowledgments for and
on behalf of the SHG;
iv. To institute and defend on behalf of the SHG members any legal proceedings and safeguard the
interests of each member of the said SHG and for this purpose engage or disengage any lawyer
or advocate or agent and incur the necessary legal expenses in connection therewith.
v. To apply for credit facility/loan, to accept the terms and conditions prescribed by Bank and to
secure the credit facility/loan by pledge/hypothecation/mortgage/charge as the case may be of
the assets/goods in the joint ownership of SHG.
- 205 -
vi. To open and operate the account relating to the said credit facility/loan, to give instructions for
disbursement or withdraw the amount of loan by cheque or otherwise, to make payments into
accounts from time to time and confirm balance and acknowledge liability on behalf of all or each
of us as agent of us or each of us from time to time.
10. In the event of death of any of the members of the SHG, his/her legal heirs shall be entitled to the
benefits and be liable for the obligations of the deceased member under this agreement.
11. It is agreed that no new person shall be inducted as a member of the SHG without consent of all the
existing members.
IN WITNESS WHEREOF the aforesaid members of the SHG have set their respective hands hereunto at
the place __________________ and on _______________ day of _____________ month ___________
year first herein appearing.
Sl. No. Name of the member of the SHG Signature/s / Thumb Impression
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
WITNESSES :
1.
2.
(Note : The SHG shall not consist more than 20 persons)
- 206 -
AB 56
AGREEMENT EXECUTED BY BORROWER AND

DAIRY PROCESSING UNIT / AGENCY
This agreement entered into at _____________________ this ______________ day of ____________
month _________________ year between Sri _______________________________________________
S/o _________________________________________________________________________________
resident of ____________________________________________________________________________
hereinafter called the Borrower and the authority, represented by ______________________________
___________________________________________ witnesseth.
Whereas the Borrower applied to ANDHRA BANK ______________________________________ Branch,
(hereinafter referred to as the Bank) for a loan of ` ___________________ (Rupees _________
____________________________________________) for the purpose of enabling him to buy
______________________ / milch cattle / cultivate ________________ crop undertking to supply the
produce to the Agro Processing Agency / Unit and also hypothecate the livestock / crop as per separate
agreement. Now this agreement between the borrower for the advance of the loan by the Bank, witnesses
as follows :
1. In consideration of a sum of `. _______________________ advanced and paid to the borrower, by
the Bank the receipt whereof, the borrower do hereby acknowledge, and covenants with the Bank
that he will duly and punctually repay to the Bank at its branch situated at _____________________
the said sum of ` __________________ along with interest at Bank rate + ____________________
with a minimum of _______________ % and with quarterly rests in regular equal installments of
` ______________ per month, the first installment to be made on or before the ______________
day of each succeeding month, provided always that the Bank will have the option to demand and
recover the entire amount due by the borrower with interest in lumpsum, if the borrower defaults
payment of any 3 installments as agreed upon by him herein.
2. The borrower hereby agrees to hypothecate the milch cattle / crops to be purchased / cultivated with
the aid of the said advance also the others now owned by him, as security for the repayment by him
of all or any sums that may from time to time become due and owing by the borrower to the Bank
under these presents, and covenants to hold the same as trustee and agent of the bank.
3. The borrower further undertakes to supply the bank with the full description of the hypothecation of
the milch cattle with distinctive or identification marks of milch cattle / area where the crop is cultivated
/ proposed to be cultivated which shall be deemed to be a part and parcel of this document and the
milch cattle purchased by the borrower and mentioned in the said statement shall be deemed to be
the hypothecated cattle / crops cultivated / proposed to be cultivated for the loan.
The borrower shall be allowed to retain the possession of the hypothecated asset so long only as he
shall duly make the said monthly installments.
4. The borrower hereby agrees to take proper and usual care of the milch cattle / crops and generally
keep them in good and fit condition.
5. The borrower shall at all times and from time to time at the request of the Officers of the Bank,
produce the milch cattle / crops for inspection and shall at all reasonable times allow free and
- 207 -
uninterrupted access to such Officers to the place where the milch cattle / crops are stationed, and it
shall also be lawful for the bank to enter into of upon any land or premises, and without notice, and for
purposes of such entry to do all acts, deeds or things as it seems necessary and take possession of
the cattle / crops.
6. The borrower have issued irrevocable letters of authority to the Agency / Unit or his nominee, authorizing
him to deduct amounts as may be required from the sale proceeds of the milk / crops and pay the
same to the bank towards the repayment of the loan / advance till such time the entire balance
outstanding in the account is fully repaid with interest due thereon.
The agency / unit has agreed to deduct amounts of periodical installments from the sale proceeds of
the milk / crops produced supplied by the aforesaid borrowers to the Agency / Unit and pay the same
to the Bank towards the adjustment of all the amount granted by the Bank to the said borrowers and
continue to deduct and pay such sums of money or moneys out of the sale proceeds of the milk /
crops purchased by the Agency from the said borrower till the entire loan amount with interest is fully
liquidated.
7. It is specifically agreed that this agreement shall be irrevocable till the entire loan with interest is paid
up fully to the Bank. The borrower hereby irrevocably appoints the Bank, as his attorney to collect
and receive all amounts accrued and payable to him by the Agency, from time to time in respect of the
sale proceeds of the milk / crops supplied by him to them, to whom he undertakes to supply milk/
crops. The Bank shall be entitled to demand and receive from the said Agency all the sums that are
due and payable by me to the Bank towards the loan sanctioned by the Bank.
IN WITNESS WHEREOF, the borrower, the Agency ___________________________________________
have affixed their signatures, hereunder on the day, month and year first above mentioned.
1.
Borrower
2.
Agency
- 208 -
AB - 57
AGREEMENT
Memorandum of Agreement made at ________________________ this ____________________day of
_____________ (month) _______________ (year) BETWEEN ______________________________
(name of the co-operative society) a Co-operative Society registered under the Co-operative Societies
Act (hereinafter referred to as Borrower) and ANDHRA BANK, a Banking Company having its Head
Office at Pattabhi Bhavan, Saifabad, Hyderabad and an office at ___________________________
hereinafter referred to as the Bank
WHEREAS
1. The borrower has requested the Bank to grant loans to its upon ` ______________________
(Rupees ___________________________________________________________) to enable the
Borrower to grant loans and other credit facility to its members.
2. Agreed to do so on the terms and conditions hereinafter set out
NOW THIS AGREEMENT WITNESSES THAT IT IS agreed by the borrower as follows :
I AMOUNT AND TERMS OF LOAN :
1. The borrower agrees to the Bank loans of ` ___________________________ (hereinafter

referred to as the Loan Amount) for the purpose and on the terms and subject to the
conditions herein set out. The Loan amount be disbursed by the Bank to the Borrower in
installments form time to time.
2. Except as the Bank and the Borrower shall otherwise agree in writing the right to make
withdrawal from the Loan Amount shall cease on the _____________ day of _____________
(month) _________________ (year)
3. The borrower shall repay the principal of the Loan Amount in accordance with the schedule
to be agreed upon at the time of disbursements from out of the Loan Amount, which schedule
may be altered from time to time by mutual agreement. Any payment by the Borrower shall
first be adjusted towards arrears of interest, if any, and thereafter arrears of installments
principal.
4. The borrower shall pay interest on the outstanding amount of the loan with the interest as
detailed hereunder and which shall be paid along with principal amount or with an installment
of principal as the case may be
5. In case of default of payment of principal as installment of principal as the case may be and/
or interest on the due date, the borrower shall be liable to pay by way of liquidated damages
calculated at the rate of __________ % per annum on the amount of principal and / or
interest then outstanding for the period of default.
EXPLANATION :
In this sub-clause the expression period of default shall mean the period commencing from the date
immediately after the date on which an installment of principal or interest, as the case may be, has been
last paid or the due date to which the last payment relates, whichever is after and ending with the date
to which the installment of principal or interest, as the case may be, in default has been paid.
- 209 -
II. PURPOSE OF THE LOAN :
The Borrower shall utilize the loan amount only for the purpose of extending loans and other financial
assistance to its members for the agricultural and other allied operations.
Ill. SECURITY :
1. The Borrower agrees that it will if necessary, as demanded by the Bank assign to the Bank
the charges created in its favour from time to time, by declarations under Co-operative Societies
Act by its members to whom it will be sanctioning loans and other financial assistance. The
assignments will be executed by the Borrower at its cost in all respects and in such form as
may be stipulated by the Bank.
2. The Borrower agrees that it will, whenever required by the Bank so to do, assign to the Bank
at its own expenses in all respects all other securities and security documents and the benefit
of any personal guarantee obtained by the Borrower from it said members.
IV. REPRESENTATIONS BY THE BORROWERS :
The Borrower represents and warrants to the Bank that
1. The Borrower and its Managing Committee have the necessary power to enter into this
Agreement and the power to borrow the Loan Account.
2. Nothing in this agreement conflicts with any of the provisions of the Borrowers by laws.
3. The Borrower shall satisfy the Bank in respect of the loan amount that it complies with all the
provisions of the Andhra Pradesh Co-operative Societies Act and Andhra Pradesh Co-operative
Societies Rules, and that Loan Amount proposed to be borrowed is within the limits if any,
prescribed under the said Act, the Rules and the Borrowers by laws.
4. The Borrower undertakes to repay the loan to the Bank as follows :
a. On or before with interest at % and in case of

default with % extra interest.
b. i. On or before `. (1st installment)
ii On or before ` (2nd installment)
iii On or before ` (3rd installment)
iv On or before ` (4th installment)
v On or before ` (5th installment)
and in the case of default of any of the installments to pay extra interest at _____ % p.a. provided
at the discretion of the Bank to recall the entire loan in case of default of installments or interest.
V. OTHER TERMS AND CONDITIONS OF LOAN
1. The Borrower undertakes to the Bank to disburse to its members all moneys drawn from the
Bank of the loan amount immediately after the statements duly authenticated by the members
and countersigned by the authorized official of the Borrower within a fortnight of the
disbursement of loan by the Borrower to its members.
- 210 -
2. The Borrower undertakes to disburse the kind portion of the loan to its members i.e. b
component, as per the_ scales approved by Bank and according to the arrangement made
by the Bank.
3. The Borrower shall, notwithstanding the assignment of charges or any other assignment
made in favour of the Bank of any other securities obtained by it, remain always liable as
principal debtor to the Bank for the due repayment of the loan amount.
4. The borrower undertakes that all amounts received by it from its said members in repayment
of the loans made by it shall be applied by it within a reasonable time in repayment of the
borrowers obligation to the Bank herein and that till so applied, shall be held by the borrower
for the benefit of the Bank.
5. The borrower agrees that if and whenever it realizes any of the securities held by it as
security for the loans made to its said members it will forthwith pay over to the bank all such
realizations to the extent required to repay the borrowers obligations to the Bank herein and
will in the meantime, pending such payment, hold all sums so realized for the benefit of the
Bank.
6. The borrower agrees not to finance any defaulter member in cash or in kind until the entire
dues of that member to the Society have been repaid.
7. The borrower undertakes to comply with any directions the bank may give from time to time
in regard to the action to be taken by it for recovery of the outstanding dues from its said
members and also to conduct its affairs in accordance with the provision of the Cooperative
Societies Act, the rules made there under, its by-laws and according to the directions given
by the Registrar of Co-operative Societies.
8. The Borrower undertakes to take all steps and other proceedings against its said members
for recovery of the loans granted to the said members and refer promptly difficult and long
outstanding dues of the said members to the Registrar of Co-operative Societies and also to
take steps for the execution of the decrees obtained by it in this regard.
9. The borrower undertakes that if it finances its members against their agricultural produce,
the borrower will undertake: (a) To retain the margin of market value of the produce as
stipulated by the Bank from time to time. (b) To repledge the produce to the Bank and hold
the same in its custody as agent for and on behalf of the Bank, and c. To recover and remit
the production finance outstanding from its concerned members.
10. The borrower undertakes to carefully store the goods pledged and to insure them whenever
necessary.
11. The borrower undertakes to keep separate accounts in respect of business conducted by it
presently or which it may conduct in future other than the lending business and to hypothecate,
if so required by the Bank, all such assets in favour of the Bank as security for the loan
amount.
12. The bank shall have the right to depute its Officers to inspect at any time the affairs of the
borrower and its books of accounts, verify the stocks and securities held by it, either at its
office or any other godown owned or rented by it. The borrower undertakes to promptly
- 211 -
rectify any shortcomings or defects observed in its working or pointed out by the Bank or in
the inspection and audit report of the Co-operative department.
13. The borrower undertakes to furnish, whenever called upon to do so by the Bank, statements
showing the financial and other particulars required by the Bank.
14. The borrower undertakes to give the Bank rights to set-off in respect of the proportionate
amount of the Borrowers investments in the share capital of ` ______________________
Central Co-operative Bank Ltd., transferred by ____________________________ Central
Co-operative Bank Ltd. to the Bank in proportion to the overdue taken by it.
15. The borrower undertakes to generally abide by the terms and conditions and to comply with
the requirements stipulated by the Bank in respect of Loan amount.
IN WITNESS WHEREOF the Borrower and the Bank have caused these presents and duplicate hereof to
be executed on their behalf by the respective authorized officials on the day and year first herein
above written.
SIGNED AND DELIVERED by Borrower by the hand of
Sri _________________________ 1. Chairman
its duly authorized official in the presence of : 2. Secretary
1. ______________________________________________ Member (Manaing Committee)
2. ______________________________________________ Member (Manaing Committee)
- 212 -
AB 58
(TO BE STAMPED AS AN AGREEMENT IN ACCORDANCE WITH THE STAMP ACT IN FORCE)
PACKING CREDIT AGREEMENT

THIS AGREEMENT made at ..............................on this ..................... day of ................ 20.. in
favour of ANDHRA BANK, a Banking Company, constituted under the Banking Companies (Acquisition &
Transfer of Undertakings) Act, 1980, having its Head Office at 5-9-11, Dr. Pattabhi Bhawan, Secretariat
Road, Saifabad, Hyderabad -500004 and among others, a Branch at hereinafter called
the BANK which expression shall, wherever the context so admits or requires, mean and include its attorney,
successors and assigns
by
Shri / Smt. .........................................S/o D/o ..................................................... aged ............. years
residing at.................................................................................................................................................
........................................
AND
Shri / Smt. .........................................S/o D/o ..................................................... aged ............. years
residing at.................................................................................................................................................
........................................
(OR)
M/s ...............................................................................................................................................................
Situated at.............................................................................................................................................
................................................................. represented By .........................................................................
hereinafter referred to as the Borrower/s, which expression shall wherever the context so admits mean
and include his/her/their heirs, executors, administrators, assigns and legal representatives.
WHEREAS the borrower would be in need of financial assistance from time to time (against hypothecation/
pledge of goods meant for and/or shipment up to a limit of . at any time by way of
Packing Credit and whereas the Bank has agreed to grant the Borrower such facility upto a limit of
`.... (Rupees ..........................................................................
...............................................................................) it is hereby agreed as follows:
1. That the Bank shall at their absolute discretion advance the Borrower such sum or sums of money
upto a limit of Rs (Rupees.......................................................................
...................................................) as the Bank shall think fit subject to the terms,
conditions, covenant and limitations hereinafter contained.
2. The borrower further agrees to pay interest at the rates mentioned above the facilities under this
agreement or such other rates and rests as may be fixed by the Bank and / or as per the guidelines
issued by RBI from time to time. In case of default in paying the instalments /dues or non-adhering to
any of the terms and conditions contained herein or Reserve Bank of India directive/bank rules,
- 213 -
agree(s) to pay interest at such enhanced rate or overdue interest as may be fixed by the Bank. The
Borrower(s) shall be deemed to have notice of change in the rate of interest whenever the change in
rate of interest / Base rate is displayed/notified by the branches/ Zonal Office / Head Office in their
premises / published in news papers/made through entry of interest charged in the pass book/
statement of account sent to the borrower. Notice regarding change of interest and charging of
overdue interest is waived by the Borrower(s).
a) For first 180 days At the applicable Base Rate % plus spread of
% presently at .% p.a. with monthly
/quarterly/half yearly/yearly rests.
b) From 181St day to 270 / 365th day At the applicable Base Rate% plus
spread of.% presently at.%
p.a. with monthly / quarterly half yearly/yearly rests.
c) Beyond 270/365 days At the applicable Base Rate%

up to date of Export plus spread of% presently
at.% p.a. with monthly/
quarterly/half yearly/yearly rests.
(Date of Negotiation / Purchase / discount of bills)
(d) In case the export does At the applicable Base Rate..% plus
not materialize spread of .% presently
at..%p.a with monthly / quarterly/half
yearly/yearly rests from the date of original
advance till date of payment.
3. The Borrower shall on demand pay to the Bank the amount outstanding and owing by the Borrower to
the Bank whether in respect of advances or in respect of monies due and payable under or by virtue
of this agreement on account of costs, charges, expenses, etc., incurred or paid by or in virtue of this
agreement together with interest on all such amounts at the rate aforesaid(all of which amounts of
advances, costs, expenses and sums of money whatsoever are hereinafter collectively referred to as
the Balance which expression shall include wherever the context so permits or admits any of them
or any part of them).
4. As security for the balance whether the same exceeds the maximum limit or not the Borrower hereby
hypothecates/pledges by way of first charge to the Bank all the goods and commodities of the
description set out in the schedule hereto now or at any time hereafter belonging to the Borrower and
which are in or shall at any time hereafter be brought into premises in ...
belonging to or in the possession of the Borrower or with the clearing Agents or with any other person
or persons or Company approved by the Bank and held on behalf of the Borrower or which are in or
shall at any time hereafter be brought into any other godown or premises where so ever or in respect
of which the borrower can make or effect or purport to make any deposit, pledge, hypothecation or
charge whether the goods are in course of transit from one godown to another, in transit by land or
sea from one place to another or whether in the possession, control or power of the Borrower or of
the Bank.
- 214 -
5. The Borrower engages to hold the goods, relative bills of lading and shipping documents and proceeds
thereof as agent and Trustee for the Bank and further engages to deal with the goods hereby
hypothecated/pledged to the Bank in accordance with the directions of the Bank.
6. That the Borrower(s) shall not remove or dismantle any of the movables or other hypothecated
properties now in use in the Borrowers premises/ factory/ shop without the consent in writing of the
Bank including in cases where such removal or dismantling shall, in the opinion of the Borrower(s),
be rendered necessary by reason of the same being worn out/deteriorated, injured, damaged or
broken and in such case will replace so worn out/injured, damaged broken or deteriorated by others
of a similar nature and of at least equal value and shall also whenever necessary renew or replace all
or any of such hypothecated properties with others of a like nature and value of as now used or
henceforth to be used for the purpose of or in connection with the business of the Borrower(s) as
and when the same shall be worn out, injured, damaged, broken or deteriorated and shall keep the
Bank informed of the replacements.
7. That the Borrower(s) shall bear all loss or damage caused for any reason to the hypothecated
properties etc., secured to the Bank (including loss by theft, burglary or any accident whatsoever)
and shall make good the deficiency by cash payment or giving additional security approved by the
bank.
8. The Borrower(s) agree(s) and undertake(s) that the amount under all or some or any of the said
credit facilities will be used only for the purpose or purposes mentioned in the Borrower(s) proposal
and for which it has been sanctioned and the Borrower(s) further agree(s) that notwithstanding
anything contained in this agreement, the Bank shall have the right to recall the entire amounts
under the said credit facilities together with interest and other charges or any part thereof and /or
withdraw the concessions if any, such as reduced rate of interest, subsidy, in case the loan amount is
/ has been used for any purpose other than for which it has been sanctioned or if the Bank
apprehends or has reason to believe that the Borrower(s) has/have violated or is/are violating the
condition.
9. The Borrower further undertakes to deliver from time to time, to the Bank, bills of lading and shipping
documents duly endorsed in favour of the Bank relating to the goods hereby hypothecated/pledged
or deliver the goods hereby hypothecated failing payment of the amount due to the Bank from the
realized proceeds of drafts sold against the said goods collected for shipment.
10. The Borrower hereby confirms that the Bank or its Agents have full power to obtain possession of the
said goods and relative documents deliverable to the Bank and for this purpose to enter the premises
where the goods hypothecated are stored or take such other proceedings or steps as the Bank may
think fit.
11. The Borrower hereby agrees to keep all the goods under hypothecation to the Bank in good condition
and insured against fire and/or all other risks while in godown and/or in transit from warehouse to
warehouse and to produce for the inspection of the Bank such insurance documents and/or sale
contracts required by the Bank and to make over to the Bank on receipt any insurance money
recoverable, all insurance money being held by the Borrower in trust for the Bank. The Borrower
further undertakes to assign on demand the insurance policy in favour of the Bank.
12. That the Bank shall not be under any liability whatsoever towards the Borrower(s) or any other
person for any loss or damage to the said goods and assets the subject of this Agreement from or in
whatever cause or manner arising whether such goods and assets shall be in the possession of the
- 215 -
Bank or not at the time of such loss or damage or the happening of the cause thereof. The Borrower(s)
shall at all times indemnify and keep indemnified the Bank from and against all suits, proceedings,
costs, charges, claims and demands whatsoever that may at any time arise or be brought or made
by any person against the Bank in respect of any acts, matters and things lawfully done or caused to
be done by the Bank in connection with the said goods and assets or in pursuance of the rights and
powers of the Bank under this Agreement.
13. The Borrower hereby agrees to submit such returns and information regarding the goods under
hypothecation to the Bank under this Packing Credit Agreement as the Bank may from time to time
require.
14. The Borrower agrees and undertakes not to obtain any advances from any other Bank or from any
other person on the goods hypothecated and charged to the Bank and they shall be stored separately
and apart from any other goods in the godown.
15. The Bank shall be entitled to the goods at all times, the Borrower holding such goods as Agent and
Trustee for the Bank. In the event of the Borrower failing to pay on demand the balance or any other
monies due to the Bank under or by virtue of this Agreement or in the event of the Borrower failing to
observe or perform any of the terms and conditions hereof or in the event of Borrower becoming
bankrupt or being wound up for committing any act of insolvency or for any reason the Bank thinks
that the security is in jeopardy, the Borrower undertakes to deliver to the Bank on demand made by
the Bank the said goods without raising any objection to enable the Bank, to sell or otherwise dispose
of the same for the purpose of realization of the balance due and the Bank shall also be entitled at
any time to take possession of the said goods without raising any objection to enable the Bank, to sell
or otherwise dispose of the same for the purpose of realization of the balance due, and the Bank
shall also be entitled at any time to take possession of the said goods wherever they may be found
and for that purpose enter upon the premises where such said goods without raising any objection to
enable the Bank, to sell or otherwise dispose of the same for the purpose of realization of the balance
due, and the Bank shall also be entitled at any time to take possession of the said goods wherever
they may be found and for that purpose enter upon the premises where such goods are lying and the
Borrower or his agent shall be obliged to deliver peaceful possession of the said goods to the Bank.
It shall be lawful to the Bank to sell without any notice to the Borrower(without prejudice to the right to
the Bank to sue the Borrower or realize any other security held) either by public auction or private
contract absolutely all or any of the goods hypothecated or pledged and to apply the net proceeds at
such sale towards the liquidation of the principal and interest thereon at % per annum
together with all costs and charges incurred or to be incurred by the Bank as ascertained by the
books of Bank signed by the Manager or other duly Authorised Officer thereof for the time being
which the Borrower hereby agrees to accept as sufficient proof of the correctness thereof without
production of any other voucher or paper; that if the net sale proceeds together with the net proceeds
of the policies as referred to in clause 8 shall be insufficient to cover the amount so found due, the
Borrower promises forthwith on production to him of the statement of account prepared and signed
as aforesaid, to pay any further balance which may appear to be due by the Borrower thereon.
16. In the event of there being a surplus in such proceeds it shall be lawful for the Bank to apply the said
surplus as far as the same shall extend in or towards payment or liquidation of any other monies due
from the Borrower by way of loans, bills discounted or negotiated, letters of credit, guarantees, charges
or any other demand legal or equitable against the Borrower or any other indebtedness, future or
contingent and whether matured or not, due solely or jointly and severally with any other person or
- 216 -
persons which the law of set off or mutual credit would in any case admit together with interest on the
said claims at such rates as the said documents, provide any Bank charges thereon and after
adjustment of all liabilities as stated above the surplus if any shall be held by the Bank at the disposal
of the Borrower.
17. Nothing herein contained shall operate or be deemed to negative, qualify or otherwise prejudicially
affect the Banks rights or remedies (which it is expressly agreed, the Bank shall have) in respect of
any present or future securities, guarantees, obligations or decree for any indebtedness or liability of
the Borrower to the Bank whether the said securities referred to herein are renewed, altered or
varied to any extent or altered in any manner.
18. The Borrower shall pay all costs, charges and expenses incurred by the Bank in the negotiation,
execution or carrying into effect of this Agreement or in relation to the exercise of any power of sale
or other power or in relation to any act, deed, matter or thing arising out of this Agreement including
non-acceptance of any bills or dishonor on presentation due to any discrepancies and agree to pay/
debit borrowers account, the equivalent of the prevailing rate of selling/exchange and/or of any
incidentals thereto and shall also pay interest thereon at the rate aforesaid and in the manner
aforesaid.
19. This agreement shall operate as a continuing security for the balance, that may be ultimately due to
the Banks rights are not to be prejudiced in any manner even if the balance exceeds the limits herein
fixed and the security shall continue in operation till this agreement is cancelled either by the Bank or
by mutual consent of the parties as hereinbefore mentioned.
20. That any notice in writing required to be served on the Borrower(s) shall be deemed to be sufficiently
served if addressed to the Borrower(s) Service of notice at the address given and left at such
address or forwarded by post. A notice sent by the post shall be deemed to be given at the time when
in the course of post it will be delivered at the address to which it is sent.
21. That the Borrower(s) hereby agree(s) that on demand by the Bank to execute such other documents
in favor of the Bank as may be claim additional necessary or advisable to hypothecate/ pledge or
further assure(s) the documents hypothecated/pledged properties in favor of the Bank.
22. That incase the Borrower(s) shall be a firm or member of a firm any change whatsoever in the
constitution of such firm during the continuance of Constitution this agreement shall not impair or
discharge the liability of the Borrower(s) or any one or more of them hereunder.
23. That the Bank shall have the right of general lien of a Banker over all the goods, stocks and other
assets including hypothecated/pledged properties of the Borrower(s) which came and hereafter will
come into the possession of the Bank or held or to be held on behalf of the Bank, for all monies owing
to the Bank on any account whatsoever and that nothing in this Banks right of agreement contained
shall be construed as excluding such general lien of General lien the Bank. The Bank shall have
discretion to refuse to give delivery of all or any portion of such hypothecated/pledged properties of
the Borrower(s) which came and hereafter will come into the Banks possession under this
Agreement or otherwise unless and until all the monies owing to the Bank under this / these
account/s or any other accounts whatsoever are fully paid to the Bank.
- 217 -
IN WITNESS WHEREOF the Borrower(s) affixed his hand on the day, month and year first above written.
BORROWER(S)
(give full particulars)
Schedule referred to above:
The following are the goods and commodities referred into this agreement
S.No Description of Goods Quantity Value Place of Storage
BORROWER(S)
(give full particulars)
- 218 -
AB 59
APPLICATION FOR DRAWINGS
From :
To
Andhra Bank,
--------------------------------------------------------
Dear Sirs,
This has reference to the packing credit agreement executed by me/us in your favour on
...........................
2. For the purpose or purchasing/acquiring the goods consigning to the

following shipment of goods to .
I/We request you to advance to the extent of `..............................
Particulars Marks Description Name of Inland CIF/FOB Advance Place of

of L/C &Quantity Ship Market Value Storage with
Contract of Goods Value Door No.
3. The goods are my/our absolute property free of any lien or encumbrance and are now in course of
being placed on board and as I/we may not receive the relative Bill(s) of Lading before the
20.
4. I/We hereby undertake to deliver to you the relative bill(s) of Lading and shipping documents duly
endorsed or pay such amount as may be due to you on or before ........... Failing to do so
by then and for such purpose to enter our premises and/or take such proceedings as you may think fit.
I/We hereby confirm that all the terms and conditions of the agreement referred to above are applicable
in full to this advance.
Signature
Place:
Date :
Note: In case of drawals under Extended Packing Credit, Para 3 and 4 are to be deleted
- 219 -
AB 60
Request for advance to cover duty & freight re packing credit and advances
Place:
Date:
From:
To
The Manager,
Andhra Bank,
.......................
Dear Sir,
Sub: Shipment of goods under pre-shipment advance of ` . ......................

As on .... (Date)
With reference to the above, granted to me/us by you on . the shipment of
the goods hypothecated/pledged to you is taking place on For the purpose of this
shipment, we have to pay `... towards duty and `
for insurance premium/freight. I/we shall thank you to advance me/us a sum of `
for the above purposes. These payments may be made by you directly to the concerned authorities and
shipping documents received by you directly. We undertake to negotiate the relative bill with you. We agree
that this loan shall also be on the same terms and conditions relating to the Packing Credit finance of
` . Granted to us on the goods for the shipment of which the present finance has
been sought.
Yours faithfully,
Borrower/s
- 220 -
AB 61
Place:
Date:
LETTER OF INDEMNITY
To From :
Andhra Bank,
......................
Dear Sirs,
In consideration of you having agreed to negotiate our Documentary Bills of Exchange

for.............................................. Drawn on .............. Dated under
the letter of Credit No. On account of .. we hereby
unconditionally agree to hold you harmless and indemnified for all consequences of non-acceptance and of
non-payment of this/these bill(s) of exchange by reason of the following discrepancies : -
1.
2.
3.
We have made arrangements for due payment of this/these bill(s).
We further unconditionally agree that in the event of the bills being dishonoured on due presentation
on account of the above discrepancies or of any other discrepancies which may become apparent upon
presentation, to authorise you to debit our account and/or to reimburse you on demand the equivalent of
the above mentioned bill at your prevailing rate of selling/exchange, together with interest at such rate as
you may determine from date of dishonor to date of reimbursement, together with all other expenses incurred
by you in connection with the dishonoured bill.
Yours faithfully,
Signature
- 221 -
AB 62
Declaration
The Manager,
Andhra Bank
___________________
Dear Sir,
I own/cultivate lands to the extent of ...........................acres at .......................................................
I request you to grant me a loan of ` ............................................ for the purpose mentioned hereunder.
1. For purchase of seeds
2. For Purchase of manures and insecticides
3. For purchase of agricultural implements.
4. For meeting cost of agricultural operations (like preparation of land for sowing: weeding harvesting
etc). (strike out the clause not required)
I offer to pledge my gold jewels fully described hereunder as security for the due payment of the loan,
Description Gross weight
I hereby declare that the stones studded in the jewels are of no consequence and I do not make claims for
reimbursement of their cost. If any of them are lost inadvertently.
I declare that the above loan amount granted to me will be spent only for the purpose declared above.
I will repay the loan amount s soon as my harvest is received and sold in the market.
I also promise to deposit with you such sum or sums of money that I can recover form my harvest, after
meeting my earlier commitments towards loans borrowed by me.
Yours faithfully,
- 222 -
AB 63
DECLARATION TO BE OBTAINED FROM MINOR ON ATTAINING MAJORITY
From :
To
The Branch Manager,
Andhra Bank,
------------------------------------------ Branch.
Sir,
Sub : Availment of Education Loan.
The Bank has sanctioned the Educational Loan of ` __________________________on _______________,

when I was minor, for my education. Now I have attained Majority.
I admit that I have been benefited out of the loan and the loan availed for my necessities.
I acknowledge and agree for the terms and conditions of Education Loan and undertake to pay the loan
amount with interest within the period stipulated.
Signature :
Name :
Place :
Date :
- 223 -
AB 64
Andhra Bank
Place:_____________________
Date :_____________________
To
M/s._________________________
Dear Sirs,
Ref: Personal Loan No______________________
As advised by Sri________________________ we enclosed our________________________________
Pay Order No. for `__________________towards the cost of____________sold to him as per your Invoice
No.__________________ dated______________Please acknowledge receipt of the amount and deliver
the article to him.
Yours faithfully,
Manager
Copy to Sri ________________________________
- 224 -
AB 65
Comp. No. 38136
REVIVAL LETTER
To
The Manager,
Andhra Bank.
____________________________ Branch
Sir,
With reference to my /our. Agricultural Credit Short Term /Term Loan Account
I/ We admit and acknowledge for the purpose of Section 18 of the Indian Limitation Act of 1963
and any other law in order to preclude any questions of limitation law that I / We , am / are fully liable to you
for payment of the amount covered by the Composite loan Agreement (Agriculture) (Kisan Credit card)
with interest in respect of all present and future indebtedness and liabilities secured thereby and is to be
in force with relative securities, agreement and obligations and further agree that the loan documents
executed by me /us at the time of availment of the Kisan Credit card continue to be enforceable and
binding on me/us.
I /We undertake to repay the said amount together with interest there on the terms / conditions
and stipulations contained in the respective loan documents executed by me / us in favour of
ANDHRA BANK.
I /We also agree that all the securities offered by me / us shall continue to be available to the
Bank till the amounts due and may become due from time to time hereafter are fully paid.
Place :
Date :
Borrower
Co-obligant
- 225 -
AB 66
APPLICATION TO OPEN IRREVOCABLE DOCUMENTARY CREDIT

L/C Ref. No.
Stamp
Applicant Beneficiary
IMPORTER - EXPORTER CODE No.

Advising Bank Amount not exceeding :
in Figures : Currency .................. Amount ......................
in words :
Expiry Date
For Shipment
for Negotiation
at the counters of negotiating Bank.
To
The Manager
Andhra Bank
......................................... Branch
Please open Full telex / Airmail / Fax by an irrevocable Documentary Credit available to the aggregate
Cable at urgent / ordinary rate
sum not exceeding ..................................................... by negotiation/of beneficiarys sight / ....................
days usance drafts drawn on us covering ..................................................................................................
.....................................................................................................................................................................
................................................................................................................. and accompanied by
(Description of Goods)
(1) Signed Commercial invoices for a value not exceeding the draft amount quoting import license
No........................................... and certifying goods are per order / indent ......................................
.................................................. The gross FOB / CIF/ C & F value of the goods before deduction
of Agents Commission, if any, must not exceed the credit amount.
(2) Certificate of .............................. origin issued by a Chamber of Commerce.
(3) Full set, signed, Clean, On Board, Ocean Bills of Lading of a Conference Line Vessel made out
of order and blank endorsed marked fieight prepaid / Freight payable at destination and notify
...........................................................................................................................................................
....................................................................................................... and .............................................
..................................................... L/C No. and date evidencing current shipment of merchandise
stated above.
and
- 226 -
Short form Bill of Lading and Third Party Bill Lading are not acceptable.
(3a) Airway Bills / Air consignment notes addressed to ...................................................................... for
account openers indicating letter of credit number and marked Freight / Prepaid / payable at
destination. Airway Bills /Air consignment notes must indicate flight number and date.
(4) Lloyds Certificate that carrying steamer is seaworthy and not more than 15 years old.
(5) Marine Insurance Policies / Certificate dated not later than the date of Bill Lading and blank endorsed
for 10% over invoice value covering institute Cargo Clause (A) Institute War Clause (Cargo) and
Institute Strikes Clause (Cargo) Warehouse to Warehouse Clauses with claims payable in India
irrespective of percentage. Transhipments risks must be covered if goods are subject to
transhipment.
(6) Test Certificate / Inspection Certificate / preshipment Certificate of a reputed agency current dated
or issued by .................................... specifying ................................................................................
(7) Packing List with the same details as in No. 6 above.
Shipment/Despatch should be affected from ..................................................................................
to............................................................. Bill of Lading must be dated not later than .........................
............................................................... nor prior to the date of this credit. (We confirm that this
date is within the date stipulated in the import Licence).
Bills of exchange must be dated and negotiated not later than ...................................... days after
the date of Shipment / Despatch, in any case not later than the expiry date of the credit.
Transhipment is permitted/prohibited.
Part-shipment is perimitted/prohibited.
ADDITIONAL CONDITIONS:
1. All bank charges outside India are for beneficiary/Opener's account.
2. The transport document :
(a) must contain all the conditions of carriage on the original document
(b) must not indicate the place of final destination as being different from the port of
discharge
(c) must not contain the indication "intended" or similar qualification in relation to the vessel
or other means of transport or port of loading or port of discharge.
(d) must be issued by carrier or his agent and not by any-freight forwarder
(e) must not contain a provision that goods may be carried on deck.
3. "LASH" transport documents are not acceptable.
4. Transport documents bearing reference by stamp or otherwise to costs additional to the
freight charges are not acceptable.
5. Short from or blank-back transport documents are not acceptable.
6. A transport document bearing a date of issuance prior to that of the credit is not acceptable.
IN CONSIDERATION of your opening the above Credit, I / We hereby agree and undertake
as follows :
- 227 -
1. I/We, hereby agree and undertake to accept and pay all bills of exchange drawn or purpoted
to be drawn pursuant to the terms of the credit and take up and pay for all the documents
negotiated thereunder in accordance with the terms thereof, as also for any disbursement
made or liability incurred by you for my our account under the Credit, together with interest,
Costs, charges, and expenses due to you in respect thereof as hereinafter mentioned.
2. (i) I/We further agree to pay to you interest on the amount(s) payable in respect of my/our
liability under the Credit, at the rate of ................. per cent per annum over the Base Rate
subject to a minimum of .................... per cent per annum or at such other rate as may be
prescribed by Bank from time to time for advances to non-priority sectors.
(ii) The aforesaid rate of interest shall however be applicable only during the period from the
date of negotiation of the bill/documents under the Credit up to and inclusive of the date
immediately preceding the date of payment by me/us or the date of crystallisation of my/our
liability on the foreign currency bill pursuant to Clasue 5 (i) below, whichever is earlier, after
which interest shall be payable at the rate stipulated in the said Clause 5 (i).
3. I/We further agree to pay to you on demand (i) the charges that may be levied as per the
Foreign Exchange Dealers Association of India Rules in force from time to time for any early/
late delivery of the relevant foreign exchange/currency under the Forward Exchange Contract,
if any, booked by me/us and (ii) the commission or handling charges at the rate of 0.15% on
the amount of the bill(s) drawn under the credit.
4. I/We also agree to Pay you on demand, all costs (legal costs on full indeminity basis) customs
duty, penalty, demurrage, storage charges, clearing and forwading charges and all other
charges and expenses which you may be put to or suffer or incur in connection with the
goods and or the documents of title to goods covered by the Credit Including for re-shipment
thereof for any reason whatsoever, or in the exercise or enforcement of any right or power
hereby conferred or otherwise howsoever, and further agree and undertake to hold you
safe and harmless and keep you indemnified against any claim, action or proceeding made
or brought against you, your correspondents or agents against any liability or loss incurred
or suffered by you, your correspondents or agents as also by reason of your having
established the Credit pursuant to my/our application or otherwise howsoever in the premises.
5. (i) If I / We fail to make due payment to you of a sight bill on its presentation or a usance
bill on the date of its maturity, which is drawn; or purported to be drawn under the
Credit and expressed to be payable in a foreign currency, then you shall be at liberty
without prejudice to your rights hereunder, to crystallise my / our liability on the foreign
currency amount into Indian rupees on the 10th day after the date of receipt of
documents by you under the Credit in the case of a sight bill remaining unpaid till then,
or on the date of maturity in the case of a usance bill, whereupon I/We shall be liable
to pay to you the Indian Rupees equivalent of such foreign currency amount as
calculated at the rate of exchange mentioned below together with interest henceforth
at the rate of .............. per cent per annum with quarterly rests, or at such other rests
as may be notified by you from time to time, until payment or realisation, and all costs,
charges and expenses payable by me/us hereunder.
(ii) The rate of exchange applicable to such conversion of the foreign currency amount
into Indian Rupees shall be
- 228 -
a) Your applicable bill selling rake prevailing on the date filling on the 10th day after the
date of receipt of documents by you under the Credit in the case of a sight bill or on
the date of maturity in the case of a usance bill provided. However that If the relevant
rate of exchange is not quoted or available for any reason on such 10th day in the
case of a sight bill or on the date of maturity in the case of a usance bill, then the rate
prevailing on the immediately next working day when such rate shall be quoted or to be
available, shall be the applicable rate of exchange, or
b). The forward exchange contract rate in case a forward exchange contract has been
booked by me / us with you.
iii) The date of receipt of documents by you under the Credit as registered in your record
shall be conclusive and binding on me/us.
iv) I/We confirm that crystallisation of my/our liability on the foreign currency bill by you
and the charging payment of interest at a higher rate as aforesaid shall not be deemed
to create any right in me/us to keep any bill unpaid when due.
6. I / We further agree that you shall have a pledge upon all goods and documents of little to
goods and other documents covered under the Credit which may have been already delivered
or shall be here after delivered into your possession or into the possession of your agents
by me/us or by any person, firm or company or my/our behalf as a result of your opening the
Credit or in connection with the transaction thereunder. The said goods and the documents
shall be deemed to be so delivered in pursuance of my/our this agreement to pledge them to
you as security for all payments which may be made by you or your correspondents or
agents under the credit for my/our account as also for any liability whatsoever incurred or
which may be hereafter incurred by you or your correspondence or agents as a result of the
operating of this Credit, together with interest, costs charges and expenses as herein above
mentioned.
7. In the event of my/our committing a default in making due payment of any bill drawn or
purported to be drawn under the Credit or in making reimbursement on demand of any
payment made by you for my/our account in respect of any liability that may be suffered or
incurred by your or your correspondents or agents under or in connection with the Credit
then you shall be entitled without prejudice to any of your rights and without credit (the said
"goods") whether before or after their arrival, either by public auction or tender or by private
contract and subject to such conditions as you may deem fit to impose or otherwise dispose
of or deal with the said goods or any part thereof and or with the relative documents of title
to goods in any manner whatsoever without being bound to exercise any of these powers or
liable for any loss in the exercise or non-exercise thereof. The net proceeds realised from
sale of the said goods or transfer of any document of title, remaining after deducting there
from the costs and expenses of and incidental to such sale or transfer, shall be applied in or
towards payment or satisfaction of the amount(s) due to you in respect of any Payment or
disbursement made by you under the Credit for my/our account, and interest thereon and all
costs, charges and expenses as hereinabove mentioned. I/We agree to accept Bank's account
of sale or realisation as conclusive evidence both in and out of court as to the amount(s)
realised and expenses incurred, and to pay forthwith any short fall or deficiency remaining
after such application. I/We further agree that you shall not be liable to me/us for any loss
which may occur pending sale or disposal of the goods and/or documents of title to goods,
whether by reason of theft, damage, deterioration or decay of the goods or depreciation in
the value thereof or otherwise whatsoever be the cause.
- 229 -
8. I/We agree to keep the said goods further insured from the time of expiry of insurance cover
under the initial policy or policies of insurance, against all risks which are normally covered
for goods of the nature purchased under the Credit as also against such other risk(s) as
may be required by you, and in the event of my/our failing to do so, you shall be at liberty to
insure the said goods at my/our cost and expense without prejudice to your rights here
under. Until all your dues in respect of the credit are paid full, I/We agree to pay to you
forthwith all moneys if received by me/us under any policy or policies of insurance and until
payment to you of such insurance moneys,, I/We undertake to hold the same in trust for you.
9. I/We further agree and, undertake to sign, execute and deliver to you from time to time on
demand made by you, such further or other deeds, documents, and writings, and do all such
acts, matters and things as may be required by you for better perfecting your title to the said
goods and the documents covered under the Credit and to render the same readily saleable
or transferable by you to any purchaser(s) at all times.
10. It is understood that the transmission of all instructions and communications under the above
Credit and the shipping documents and goods thereunder is entirely at my/our risk. You and
your correspondents or agents shall not be responsible for any error or delay in such
transmission or loss or delay in delivery of the documents or the goods nor shall you or your
correspondents or agents be liable in any respect beyond ensuring that the bill(s) drawn
under the credit and the relative documents covered thereunder purport to comply with the
terms and conditions of the Credit.
11. I/We have made adequate arrangements for retiring the bills under the Credit and do not
contemplate to seek any financial assistance from you for the purpose.
12. I/We agree to the negotiations of the drafts drawn under the Credit being confined to your
branches or agencies or to any bank acceptable to you.
13. I/We confirm that the goods described above are covered under my/our below mentioned
import license.
14. I/We enclose for you perusal:
i) Order together with the order confirmation of overseas supplier
OR
ii) Proforma invoice of overseas supplier duly countersigned by us
OR
iii) Indent/Offer from overseas supplier or his authorised agent together with the Exchange
control copy of the relative Import licence.
I/We undertake to submit to you the exchange control copy of the relative Customs Bill of
Entry after clearance of the said goods or within 3 months from the date of remittance whichever
is earlier.
15. This application shall be deemed to have been accepted and the credit deemed to have
been established when written advice thereof has been sent to the beneficiary.
16. I/We agree and confirm that this Credit may be amended and/or modified by you in your
absolute discretion, including for an increased limit, on our giving you written instructions for
the same and in such an event, such amendment / modification will be deemed to from part
- 230 -
of this Credit application and will be governed by the terms here of and I / We agree, covenant,
record and confirm that I / We shall be bound by the same as if such amendment modification
including the increased limit had originally constituted the term of this credit.
17 This Agreement Shall be binding upon me/us, my/our heirs, executors and administrators /
successors and shall ensure to be of and be enforceable by you, your successors; transferees
and assigns.
EXCEPT AS OTHERWISE EXPRESSLY STATED TO THIS CREDIT IS TO BE OPENED
SUBJECT TO THE UNIFORM CUSTOMS AND PRACTICE FOR DOCUMENTARY CREDITS
(1993 REVISION) AS CONTAINED IN THE INTERNATIONAL CHAMBER OF COMMERCE
PUBLICATION NO.500 AS AMENDED FROM TIME TO TIME.
18. I/We confirm that the goods / items to be imported are not in the negative list of current
import policy of Govt. of India.
Licence No. Date
for ` Valid upto : Yours faithfully
Date Signature Signature
HO Limit ` ......................................... Number

Outstanding L/C ` ............................
L/C Amount ` ..................................... Date of Issue
Margin held ` ..................................... Date of Expiry
............................................................... Goods ..................................
...............................................
...............................................
Value `
Limiting factor .........................................Value/Quantity/Both
Signature of Signature of .
Manager Officer
- 231 -
AB 67
(To be stamped as an agreement in accordance with the Stamp Act in force in the state in which this document
is executed. Not to be attested)
EXTENDED PACKING CREDIT

The Manager,
Andhra Bank,
.. 20.
Dear Sir,
Being desirous of obtaining from you an advance of ` __________________ for the purpose of
purchasing or acquiring the following goods:
Description Value
to be shipped on or before to .. and in consideration of your allowing me/us such advance

pending the negotiation through you, of the relative bills, I/we undertake to apply the amount so advanced
towards purchasing or acquiring the said goods within .. days and to no other purpose and when and so
soon as the said goods have been purchased or acquired by me/us, I/we undertake to hold the same as
goods exclusively hypothecated/pledged as desired by the Bank to you as security for the advance
hereinbefore mentioned with all relative interest, expenses etc., and for the said purpose submit to you a
statement of stocks and to hold the said goods and all relative documents thereof in trust solely for you to
be dealt with according to your directions against the said advance and free of any right, charge or lien in
favour of any other bank or third party and to hand you the relative shipping documents ( Bills of Lading,
invoices and policies of insurance including war risk) on or before
as aforesaid, with power for you and your agents to obtain possession of the goods and documents and for
such purpose to enter on premises and/or take such other proceedings as you may think fit.
I/we also undertake to keep the said goods and all documents thereof separately distinguishable as
property exclusively hypothecated to you and to keep the said goods in good condition and insured against
fire and/or other risks as you may require to their full value such Insurance to operate(until such time as the
goods shall be covered by Marine Policy or Policies) and to hand over to you all insurance documents got
insured or transferred to you to ensure receipt by you of all monies recoverable under the said insurance.
We also undertake to submit to you such returns for information regarding the said goods as you may
from time to time require until this credit is cleared.
And we being more than one individual or a firm agree that, our obligations hereunder shall jointly and
severally bind us and all members, from time to time, of our firm notwithstanding any changes in the constitution
or style of our firm and whether the firm may consist of or be reduced to one individual.
Yours faithfully,
Signature of applicant
- 232 -
ACCOUNT
Letter of Credit No Name of issuing Bank:

--------------------------- Name of Overseas Buyer
Sale Contract in case of contract
Last date of Shipment Expiry Date :
Amount of Letter of Credit

------------------------
Sale Contract Rupee Equivalent:
Fire Policy No: Amount : Due Date:
Name of the Insurance Company :
Date Advances as indicated Repayment (`) Bill No. & Amount Balance Remaks
on the Reverse (`)
ACCOUNT CLOSED
- 233 -
NEW NUMBER OF DOCUMENTS
S.No Name of the Document New No Old No
1 Composite Agreement AB 1 Comp. 40150

2 Composite Agreement(Agrl) AB 2 Comp.38314
3 Educational Loan Agreement AB 3
4 Housing Loan Agreement AB 4
5 Vehicle Loan Agreement AB 5
6 Promissory Note - Joint & Several AB 6 RF 210
7 Promissory Note - Individual AB 7 RF 211
8 General Form of Guarantee AB 8 RF 291
9 Offer of Security (Counter Guarantee) AB 9 RF 256
10 Memorandum of Deposit of Title Deeds AB 10 RF 255
11 Extending of Securities already AB 11 RF 255 B
deposited to other facilities
12 Power of Attorney for Deposit of Title Deeds AB 12 RF 255 A
13 Registered Mortgage Deed AB 13 RF 295
14 Agreement for Purchase or Discount of Bills AB 14 RF 289 A
15 Letter for purchase/Discount of Bills AB 15 RF 279
16 Draft Resolution AB 16 RF 212A
17 Hire Purchase Agreement with Financiers AB 17 RF 258
18 Joint Hindu Family Letters AB 18 RF 22
19 PartnerShipLetter AB 19 RF 23
20 ApplicationFor Bank Guarantee AB 20 RF 144A
21 Counter Guarantee AB 21 RF 145A
22 Registration of Charge in favour of Bank(CHG 1) AB 22 RF 213
23 Lifting of Charge ( CHG 4) AB 23 RF 215
24 Letter of authority for third Party Deposits AB 24 RF 223 A
25 Application Cum Take Delivery Letter AB 25 R F 224 A
26 Rent Letter AB 26 R F 232
27 Letter of Lien AB 27 RF 233
28 Application cum Take Delivery Letter AB 28 A/B/C/D RF 239 A/B/C/D
(For Advances against deposits/GP Notes etc
29 Letter of Lien on Deposit receipt AB 29 RF 240A
30 Overdraft Continuity Letter AB 30 RF 242
31 Risk Letter AB 31 RF 247
32 Gold Loan Application Form AB 32 RF 250
- 234 -
33 Right Relinquishing Letter AB 33 RF 248
34 Trust Letter AB 34 RF 262
35 Personal Loan Agreement AB 35 RF 267 A
36 Letter of Authorisation AB 36 RF 269 A
37 Letter of Undertaking from the borrowers employer AB 37 RF 270
38 Godown Certificate AB 38 RF 277
39 Term Loan Agreements AB 39 RF 293
40 Agreement for hypothecation of movable machinery AB 40 RF 294
41 Form of Declaration Creating a Charge to AB 41 RF 295 E
be registered with the Tahasildar/Sub- Registrar
42 Cancellation of Limits AB 42 RF 298
43 Agreements for Loans and Advances to Weaker Sections AB 43 RF 300
44 Request Letter for Prepaid Acquisition Facility AB 44
45 Prepaid Acquisition Agreement AB 45
46 Deed of Assignment AB 46
47 Special Power of Attorney AB 47
48 Tripartite Agreement AB 48
49 General Power of Attorney AB 49
50 Letter of Undertaking AB 50
51 Letter of Acceptance by Tenant/Lessee AB 51
52 Reverse Mortgage Loan Agreement AB 52
53 Bipartite Agreement (Kisan Sampathi) AB 53
54 SHG Loan Agreement AB 54
55 Interse Agreement (Self Help Group) AB 55
56 Agreement executed by borrower AB 56 AGF 13
and Integrated Milk Project Authority
57 Loan Agreement for Co-operative Societies AB 57 AGF 14
58 Packing Credit Agreement AB 58 FEF 1
59 Application for Drawings(LCs) AB 59 FEF 2
60 Letter of Request for Advance AB 60 FEF 4
to Cover Duty & Freight etc
61 Letter of Indemnity AB 61 FEF 5
62 Declaration for Agriculture Gold Loan AB 62 RF 247 A
63 Declaration from Minor after obtaining majority AB 63
64 Letter enclosing Pay Order to Dealer AB 64 RF 271
65 Revival Letter AB 65 Comp No. 38136
66 Application to open Irrevocable Documentary Credit AB 66 FEF 6
67 Extended Packing Credit AB 67 FEF 3
- 235 -

Guidelines For Loan Documentation - Unlocked

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DOCUMENTATION

2. Registration with Central Registry (CERSAI)

3. Registration with the Registrar of Companies (ROC)

The following are the different modes of securing Advances :-

2. HYPOTHECATION : Hypothecation is defined in Section 2(n) of the SARFAESI Act 2002.

1 Advances against bills 1. Application for advances in prescribed

2 Advances against Deposits 1. Application cum take delivery letter. AB 28 A/B/C/D

2(ii) SOD against Deposits 1. Composite Agreement in addition to the AB 1

3 Agriculture Credit - PAGCC / 1. Application for Agrl. Credit in prescribed

- Pisiculture, Sericulture 3. Offer of Security AB 9

5 Agriculture Gold Loan 1. Application for Agricultural Gold Loan. AB 32

6 Advance against documents 1. Application cum take delivery letter. AB 25

7 Advance against Shares 1. Application cum take delivery letter AB 25

8 Bank Guarantee 1. Letter of Issue of Guarantee AB 20

9 Clean Advances 1. Application for advance in prescribed

10 Demand Loan against 1. Application for advance cum Take AB 25

11 Educational Loans 1. Application for Educational Loan in

12 Foreign Bills Purchase 1. Agreement for Bills purchased AB 14

13 Finance to Flat and 1. Application for Advance

14 Gold Loans 1. Gold Loan Application AB 32

15 Housing Loans 1. Application in prescribed format.

16 LC Limit 1. Application cum Agreement (Stamped) AB 66

17 Loans to Co-op Societies / 1. Application for Advance in prescribed

18 Mortgage Loan 1. Application for Advances

19 Motor Vehicle Loans 1. Application for advance in prescribed

20 OCC & KCC 1. Application for advance in prescribed

21 Overdraft Against Book 1. Application for advance in prescribed

22 Prepaid Acquisition Facility 1. Application for Prepaid Acquisition

23 Personal Loans / 1. Application for advance.

24 Packing Credit 1. Application in prescribed format.

25 Rent Receivable 1. Application

27 SHG 1. Loan Application

28 Term Loans 1. Application for advance

29 Trust Letter Facility 1. Trust Letter Agreement with Receipt AB 34

30 Advance against 1. Application for Advance

Schedule No. Nature of Facility/Security Details to be furnished in the Annexure

COMPOSITE AGREEMENT (for Agriculture) - AB 2

VEHICLE LOAN AGREEMENT - AB 5

PROMISSORY NOTE - JOINT AND SEVERAL - AB 6 (RF 210)

PROMISSORY NOTE - IN CASE OF FIXED RATE OF INTEREST - AB 7A

GENERAL FORM OF GUARANTEE - AB 8 (RF 291)

OFFER OF SECURITY - AB 9 (RF 256)

MEMORANDUM OF DEPOSIT OF TITLE DEEDS - AB 10 (RF 255)

The following precautions should be carefully observed:

MEMORANDUM OF DEPOSIT OF TITLE DEEDS - EXTENSION OF MORTGAGE - AB 11 (RF 255B)

In case of fresh property being mortgaged, fresh/additional AB 10 should be taken.

POWER OF ATTORNEY FOR DEPOSIT OF TITLE DEEDS - AB 12 (RF 255A)

AGREEMENT FOR PURCHASE OR DISCOUNT OF BILLS- AB 14 (RF 289A)

HIRE PURCHASE AGREEMENT WITH FINANCIERS - AB 17 (RF 258)

JOINT HINDU FAMILY LETTERS - AB 18 (RF 22)

PARTNERSHIP LETTER - AB 19 (RF 23)

APPLICATION FOR BANK GUARANTEE - AB 20 (RF 144A)

REGISTRATION/MODIFICATION OF CHARGE - AB 22 (RF 213)

LIFTING OF CHARGE - AB 23 (RF 215)

LETTER OF AUTHORITY FOR THIRD PARTY DEPOSITS AB 24 (RF 223A)

APPLICATION - CUM - TAKE DELIVER LETTER - AB 25 (RF 224A)

RENT LETTER - AB 26 (RF 232 )

SECURITY FOR ADVANCES & LOANS - AB 27 (RF 233)

Vehicle of _ Make, Model _ bearing

` ____ Date: _

No. ____ Place: _

` ____ Date: _

No. ______ Place: _

` ____ Date:

I, _S/o, D/o, W/o _