Loan Agreement
Loan agreements between individuals, businesses or group companies — amount, interest, repayment, security, default and recovery.
- Estimate Cost
- ₹3,000 – ₹25,000
- Typical duration
- 4 days
Service overview
Drafting legally sound loan contracts and promissory notes outlining principal amounts, interest rates, repayment schedules, and default terms.
Who needs it? / When is it needed?
Lenders, borrowers, financial institutions, and private parties executing monetary loans.
What to expect from the WCP Professionals
Drafting robust protective clauses covering repayment mechanics, security collateral, interest calculations, and default remedies.
Key deliverables
Comprehensive Loan Agreement draft, repayment schedule template, and default notice format.
Standard turnaround time
2 to 4 working days.
Government fees, timelines & key outcomes
No government fee for drafting. Stamp duty on the loan agreement and any security documents is payable at the State rate, often linked to the loan amount.
Where a company creates a charge over its assets as security, Form CHG-1 must be filed with the ROC within 30 days, with the MCA fee.
Key outcomes: an enforceable record of the loan and its security, supporting recovery if the borrower defaults.
Forms & filings involved
- No filing for an unsecured private loan
- Form CHG-1 with the ROC where a company creates a charge
- Board and shareholder approvals for loans between companies under Sections 185 and 186 of the Companies Act
- Promissory note or post-dated cheques, where agreed
Documents required
- Details and KYC of the lender and borrower
- Loan amount, interest rate, tenure and repayment schedule
- Details of any security or guarantee
- Board resolutions, where a company is a party
What we need from you
Accurate financial figures, repayment frequency, and security documentation details.
Important conditions
Subject to proper stamping and compliance with state-specific money lending regulations.
Additional information
Amortization schedules and restructuring clauses can be attached as addendums.
The estimated cost covers indicative professional fees only. Government fees, stamp duty and taxes are payable at actuals.
How it works
- 1. Raise a service enquiry describing your requirement.
- 2. A Relationship Manager reviews it and opens it for bidding.
- 3. Pay into escrow and assign the professional you select.
- 4. Track progress to completion, then accept and release payment.
Frequently asked questions
Is a loan between friends enforceable?
Yes, if documented — a signed and properly stamped loan agreement or promissory note is strong evidence for recovery.
Do companies need approval to give loans?
Yes. Loans by companies are governed by Sections 185 and 186 of the Companies Act, with limits and board or shareholder approvals.
What is Form CHG-1?
The ROC filing to register a charge when a company gives its assets as security for a loan, due within 30 days of creation.
Can interest be charged on a private loan?
Yes, at the agreed rate, subject to State money-lending laws and the usual tax treatment of interest income.