Document background
The Instalment Credit Agreement is a fundamental document in Indian lending practices, used when a lender provides credit to be repaid through structured periodic payments. This agreement is essential for both secured and unsecured credit facilities, commonly used in various contexts from personal loans to business financing. It must comply with multiple Indian regulations including the Banking Regulation Act, RBI guidelines, and Consumer Protection Act 2019. The document typically includes comprehensive terms covering credit amount, interest calculation, EMI structure, security details (if applicable), events of default, and remedies. It's particularly important in the Indian context due to specific regulatory requirements around interest rate disclosure, borrower protection, and recovery mechanisms. The agreement serves as the primary contractual document governing the credit relationship and is crucial for enforcement under Indian law.
