Document background
The Secured Loan Note is commonly used in Indian financing transactions where lenders require tangible security against their loan exposure. This document type is particularly relevant when parties need a comprehensive but streamlined instrument that combines the features of a loan agreement and security documentation. The Secured Loan Note must comply with Indian contract law, secured lending regulations (including the SARFAESI Act), and local registration requirements. It typically details the loan amount, interest rates, repayment terms, security arrangements, events of default, and enforcement mechanisms. This document is especially suitable for bilateral lending arrangements where the security structure is straightforward and can be documented within a single instrument rather than multiple separate agreements.
