Loan contracts are also popular with financial institutions such as banks, financial companies, gold credit companies, mortgage lenders, etc., you should usually submit the promised note and loan agreement to financial institutions when you acquire loans from them. These loan contracts are very comprehensive and I run on dozens of pages. Hello Sreekanth, Good Article and Knowledge one , My survey is a friend of mine took 15 lakhs for his personal problems with the security of 4 rs blank checks and a50 rs borrowing and a blank white paper without a turnover stamp. Can I fight in court and the documents are empowered to file a complaint. Thank you A great blog you have, as well a valuable source of information for many of us. I hope I ask you to clarify the following concerns. I lent 5 lakhs to a relative in 2014. As there was no refund, I had it made a handwritten PN (with 2 witnesses) in 2016, although it was established with the date 2014. Now I am warned that I will sue him, but he defies me and tells me that he would plead that he has already repaid it, and the PN I have is a forgery. My worries are; 1) Is it safe for me to assure the court that the PN is written in 2014? Is there any way he can prove it differently? 2) Is he on trial when he claims to have already repaid it? He will certainly have no evidence to support his lie. Thank you, greetings, sreejith If we write the word “LIMIT-PRONOTE” above on the prescribed printed proform of Demand Promissory Note, i.e. pronote or DPN, and the same is given to a duly signed/executed creditor, for the benefit of creditor who uses the payment/repayment of credits in a CREDIT-LIMIT-A/CASH.
Similarly in a “TERM LOAN A/C” the loan is repayable either on request or in tranches with or without interest, the word “LIMIT-PRONOTE” is not used. What are the conceptual and legal differences in the two types of “PRONONTs.” Are there any special legal uses of Demand Promissory Note d., pronote with the quote “LIMIT- PRONOTE” in a CASH CREDIT -LIMIT A/C. This document must be read carefully by the parties and the guarantor (if any). The loan agreement is legally binding if it has been printed on non-judicial stamp paper or electronic stamp paper and signed and dated by each party. The value of the buffer paper depends on the state in which it is executed. Each state of India has provisions on the amount of stamp duty payable on these agreements. Information on stamp duty can be found on the government`s websites. For example, the Karnataka State website provides stamp duty details on payment agreements, such as the Delhi site.