Most Important Terms & Conditions (“MITC”) for EIL

The MITC shall form an integral part of the Sanction Letter and Loan Documents. The facility/ies mentioned is/are subject to the terms and conditions contained in the Loan Documents.
The sanction is subject to realization of the processing fees and charges which will be non-refundable. The Borrower/s has received the Schedule of Charges in good order and the same as published on Lenders’ website (https://www.avanse.com/schedule-of-charges) is acceptable to the Borrower/s.
The Borrower(s) agrees to execute the Loan Documents and repay the Loan/s in a timely manner.
The Loan shall be secured by first and exclusive charge on all its existing and future receivables /Fee Receivables/ current assets/ the immovable and movable property and/or such other security by way of mortgage and/or hypothecation, to the satisfaction of the Lender. In case of additional limits, the existing mortgage shall stand extended to cover the proposed additional limit and/ or as per the sanctioned conditions.
The Borrower(s) agrees/acknowledges that the Borrower(s) has availed the subject Loan Facility solely for Commercial or Business Purpose/Purchase of Property
The Borrower agrees that the title documents would be stored at the storage facility (including storage of any third-party vendor) at Borrower’s behest and shall hold the Lender harmless and indemnified in this regard. The Borrower further undertakes to deposit their title document only to the authorized officer of the Lender and agrees not to deliver any title document without obtaining written acknowledgement.
The Borrower expressly consents the Lender or its Service Provider to use and process data including personal data for the purposes of (i) credit assessment by verification with credit information companies/credit bureaus (ii) processing loan facility and value-added services.
The Borrower/s undertakes to do independent assessment for availing value-added services of third parties, wellness and related policies and/or other products and services as per Borrower’s suitability. The Lender is not a Service Provider to the Borrower for such third party products and/or services and shall not be liable in any manner to the Borrower/s pursuant to facilitating the same.
The Borrower(s) has agreed to obtain insurance from an insurer of Borrower’s choice as approved by the Lender and with such terms agreeable to the Lender which shall be endorsed/assigned in Lender’s favour and such endorsement/assignment shall be maintained throughout the term of the loan until the entire repayment.
The Borrower(s) agrees/acknowledges that misuse of advanced funds/loan amount other than the purpose specified herein shall constitute a material breach, misappropriation, and a serious offense. In such case, the Lender shall be entitled to all available remedies and take actions (criminal complaint and/or civil proceedings) including recall of Loan.
The Borrower shall not without the prior written consent of the Lender;
1. make any changes in its management structure and changes in any existing operative bank accounts.
2. repay, any loans from the trustees/directors/promoters/relatives/third parties, if any, as on the date of the first disbursement under the facility
3. borrow/avail any new loan/ future financial assistance of CC/OD/Term loan (secured/unsecured) from any other Bank or financial institutions,

Any breach of the above terms shall constitute material event of default for which the Lender shall be entitled to levy Default Charges in addition to right of management including rights to appoint the Lender nominee in trust / society during the tenor of loan

The Borrower(s) shall provide Charity Commissioner’s NOC and/or other Authority’s Approval (wherever applicable) (“NOC”) within the timelines as specified by the Lender. Without prejudice to Lenders’ rights and remedies, the Lender reserves right to levy Default Charges or take suitable action as it may deem fit (if applicable), in case of failure to provide NOC as per the timelines specified by the Lender. The Borrower shall provide acknowledgement from the Authority prior to disbursement.
The Borrower(s) shall ensure the deduction of the amount of TDS (if applicable) and depositing the same with the relevant Government Authorities. The Lender shall give credit of TDS in its books, only after receipt of original TDS receipts from the Borrower(s). Any additional interest charged on account of delay in submission of TDS receipts/payment of TDS shall be borne and paid by the Borrower(s).
Conversion Charges for switching type of interest rate (floating – fixed): In case of reset in the applicable interest rates, the Borrower may exercise an option for switch over upon payment of conversion charges on the loan outstanding. Such switchover shall be allowed only twice during the tenure of the Loan in accordance with and subject to the interest rate policy of the Lender (Conversion charges shall be as mentioned in the Schedule of charges)
The Lender shall have rights to seek financial documents / student data periodically for monitoring purposes.
Borrower to provide 12A/ 12AA registration copy to the Lender (wherever applicable).
The Borrower(s) expressly undertake that:
- Payment of instalments shall be under the NACH/ECS mandate for appropriate administration of loan account;
- Lender will be entitled to present NACH on the due date, despite prior or additional payments if any;
- Any additional payment in the loan account will be adjusted against the amounts payable/ in terms of the loan agreement;
- Lender will not be obliged to suspend NACH presentation for any reason whatsoever.
Loan sanction is subject to Borrower/s and other obligor/s complying at all times with the Laws and regulations governing their business and operations including but not limited to on the matters of (a) social cause and public policy, (b) protection of environment, (c) labour and employment, (d) occupational health and safety, (e) specific purpose for which loan is availed (f) local laws and compliances.
Lender shall be entitled to cancel/revoke the unutilized sanctioned limit at its sole discretion. Where such decision to cancel/revoke the sanctioned limits is taken for reasons attributable to the Borrower or its credit assessment including but not limited to non-compliance of sanction conditions, documentation, security creation requirements by the Lender, then the Borrower (without prejudice to other rights of the Lender) will not be entitled to any part and proportionate refund of processing fees & charges.
Approach for Gradation of Risk: Interest Rate comprising risk premium/spread has been provided inter-alia basis nature of loan, borrower’s creditworthiness, nature of security, nature of product, borrower/risk profile, repayment capacity, past repayments, borrower's loan tenure and geography (location). Fees & charges applicable to the loan facility are levied inter-alia basis cost & expenses for product/services, encourage financial discipline, competition/industry benchmarking, market practices for the loan type and quantum, in compliance with regulatory guidelines. The Borrower acknowledges that Lender's interest rate depends on many factors including cost of its borrowed funds. The Lender may vary the interest rate prospectively as it may deem fit and/or in accordance with guidelines laid down by RBI, from time to time and will be published on its website. Moreover, upon change in the base lending rate (BLR)/ Benchmark Rate, the Borrower will pay the Loans linked to BLR in accordance with the revised rate announced by the Lender. Any change in risk profile and/or overall credit risk factors may require the Lender to change the interest rate/ spread subject to ceiling rate prescribed under the interest rate policy. The Lender shall be entitled to revise the due date cycle and the other components of amortization schedule in accordance with its policy or process for administration of the loan accounts.
The Lender is hereby entitled to make proportionate changes in the repayment schedule, by increasing or reducing the EMI or extending the repayment schedule or both, consequent to revision of interest rate. If any extension of the tenure of the Loan as is likely to exceed maximum tenure assessed by the Lender for the Loan, then the Lender may also give required effect in any number and amount of instalment as it may deem fit and appropriate.
Any security interest in favour of the Lender with respect to any security shall remain in full force and continue and be extended for all the existing and future debts (irrespective of whether those debts are incurred under this loan or other debts or any other agreements/instruments, including secured and unsecured) for Lender to exercise set-off. The Borrower shall maintain security with a minimum margin of 200% of the outstanding amounts. Accordingly, any security charged in favor of the Lender shall not be released until all such debts are fully repaid to Lender’s satisfaction.
Upon settlement or realization of entire dues (as acceptable to the lender) of all the loans/debts, the Lender shall (within 30 days) release the original property documents in its custody (if any) to the Property Owner (Borrower/Co-Borrower) or its nominee/ legal heir. The Property Owner has expressly elected to receive the original property document at the branch/office location of the Lender (where document is made available by the Lender).
The Borrower acknowledges that, by giving the loan facility, the Lender have not and do not intend to give any professional advice or make any statement regarding taxation and related benefits. The Borrower/s will independently consult/have consulted its tax advisors/ other professionals for their financial planning and tax assessment/s.
All the taxes and cost for the facility including stamp duty, GST, registration and CERSAI charges including but not limited to the applicable taxes on the processing fees or any penalty(ies) that may be imposed shall be borne and paid by the Borrower/s without claiming any set-off, counter claim, damages, etc.
In case of failure to supply GSTIN (where applicable) to the Lender, it will be considered as if the Borrower/s is not registered under the GST law and the provisions as may be applicable to unregistered Borrower would be applicable.
Unless otherwise notified by the Lender in writing, this Sanction Letter shall stand revoked and cancelled if:
1. any material changes occur in the proposal for which this Loan is, in principle sanctioned.
2. any material fact concerning income or ability to repay or any other relevant aspect of the proposal or application for loan is withheld, suppressed, concealed or not made known to the Lender.
3. any statement made in the loan application is found to be incorrect, incomplete or untrue.
4. there is a default under or a breach of the terms and conditions of this letter or any other loan/facility offered by the Lender to you/any of you;
5. the legal/technical/valuation report on the property is not satisfactory to the Lender
6. unconditional and absolute acceptance of the Sanction Letter has not been received by the Lender within thirty (30) days from the date of issuance of this Sanction Letter.
The Lender shall be informed in writing about any changes, in correspondence address, change in employment, loss of job, business, profession, as the case may be immediately after such changes/ loss, notify the causes of delay, loss/damage to the property, notify the additions /alterations to the property.
Cheques (PDCs) if any, issued towards repayment of loan to be replenished as and when they are exhausted towards payment of balance monthly / periodic instalments, till such time the entire loan is paid off.
Notwithstanding the issuance of the Sanction Letter and the acceptance thereof, the Lender in its sole discretion may decide to not disburse the Loan, revoke the Sanction Letter without being required to give the Borrower any prior notice and without assigning any reasons.
This MITC shall be read in conjunction with the Sanction Letter, and Loan Documents for the purpose of interpretation of any terms hereof. Any other terms and conditions not included herein may contain in the Loan Documents and shall be treated as part of this MITC.
In confirmation of your agreement to be bound by the terms and conditions stipulated hereinabove please return the copy of this MITC letter duly signed by the authorized signatories of Borrower(s) and guarantor(s) (if any) as a token of acceptance to the branch office of Avanse Financial Services Ltd. within 30 days from the date of this letter together with cheque/demand draft marked "Payees A/c only", drawn in favour of “Avanse Financial Services Ltd" and payable at any bank in India on account of balance processing fees.