LOAN AGREEMENT (“Loan Agreement”)

I.DISCLAIMER

1. This document is an electronic record in terms of the Information Technology Act, 2000 and Rules there under in force, and the provisions pertaining to electronic records in various statutes as amended by the Information Technology Act, 2000 from time to time (“Loan Agreement”). This Loan Agreement is generated by a computer system and does not require any physical or digital signatures for validation, consent or acceptance.
2. The terms and conditions of usage of the application StuCred (“StuCred”) offered by Kreon Finnancial Services Limited (“Kreon/Lender”) shall be construed as part & parcel of the terms & conditions of the Loan Agreement and shall apply mutatis mutandis. Registration with StuCred is mandatory and existence of an active user account of StuCred shall be necessary for the grant of a loan by Kreon. Kreon has the sole authority to sanction, process, grant or decline the loan to the user of StuCred.
3. The provision of services in the form of grant of loan is expressly conditioned on your (“User’s/Borrower’s”) assent to the Loan Agreement. Any acceptance of a loan facility offered by Kreon is expressly limited to this Loan Agreement. No document uploaded or document solely signed by the User shall modify this Loan Agreement. The Lender may amend the Loan Agreement after prior notification to the Borrower and such amendment of the Loan Agreement will thereupon apply to the Borrower.
4. 4.By clicking on the ‘ACCEPT/I AGREE’ button at the bottom of this page, the User irrevocably and unconditionally accepts the terms of the Loan Agreement for grant of loan and these terms and conditions will constitute a legally binding contract between the Lender and the Borrower.

II.DEFINITIONS

1. AGREEMENT: “Agreement” shall mean this Loan Agreement.
2. AMOUNT DUE: “Amount Due” shall mean the Loan Amount together with Default Interest, penalty and any other amounts due and payable by the Borrower to the Lender.
3. APPLICABLE LAW: “Applicable Law” shall mean any Indian statute, law, acts of the state legislature or Indian Parliament, regulation, ordinance, rule, judgment, order, decree, bye-laws, clearances, directives, guidelines, policy requirement, or any governmental restriction or any similar form of decision of, or determination by, or any interpretation or administration having the force of law in India of any of the foregoing, by any governmental authority having jurisdiction over the matter in question, whether in effect as of the date of this Loan Agreement or thereafter, and includes any laws, notification, circulars, ordinances, byelaws, rules whatsoever.
4. APPLICATION/APP: “Application/App” shall mean the StuCred platform, the mobile application or the algorithm created, developed, designed and made available by Kreon for lending to its Users.
5. BANK ACCOUNT: “Bank Account(s)” shall mean a bank account maintained by the User with a Bank.
6. BORROWER: “Borrower” shall mean any individual who avails a Loan (defined later) through the application and shall include an individual who has opened a registered account with Kreon.
7. BUSINESS DAY: “Business Day” shall mean a day when banks are open and working in their regular course of business in Chennai, except public holidays and bank holidays.
8. CREDIT LIMIT: “Credit Limit” shall mean the maximum allowable sum which the User can request for disbursement as Loan from Kreon.
9. STUCRED RATING OR STUCRED SCORE: “StuCred Rating” or “StuCred Score” shall refer to the assessment, by the Lender or any person authorized by the Lender, of the creditworthiness of the Borrower.
10. DEFAULT: “Default” includes non-payment of Amount Due/Outstanding Amount and/or any amount due to Kreon.
11. DEFAULT INTEREST RATE: “Default Interest Rate” shall refer to the rate at which the Lender shall compute and apply interest on all Amounts Due/or Outstanding Amounts computed from the Due Date till the date of actual payment of the Outstanding Amounts at the rates specified in Clause VII of the Loan Agreement.
12. DUE DATE: “Due Date” means in respect of any amount payable for a Loan, the date on which such amounts becomes due in terms of the Loan Agreement; and if such due date falls on a day which is not a Business Day, on the immediately preceding Business Day.
13. EMI/EQUATED MONTHLY INSTALLMENT: “EMI” or”Equated Monthly Installment” shall mean the amount payable every month by the Borrower to the Lender comprising the Interest, or as the case may be, the Loan Amount and Interest.
14. KREON: “Kreon” shall mean KREON FINNANCIAL SERVICES LIMITED, a non-banking financial company which sanctions, processes, grants or declines the Loan to the User of StuCred;
15. LOAN: “Loan” shall mean the loan of money for which a user may apply through the Application for the consideration of Kreon, or the grant of a Loan by Kreon subject to the acceptance of the terms and conditions of the Loan Agreement by the User.
16. LOAN AGREEMENT: “Loan Agreement” shall mean the Loan Agreement executed between Kreon and the User pertaining to the granting of a Loan whether in physical or electronic form as may be applicable from time-to-time.
17. LOAN AMOUNT: “Loan Amount” shall mean the principal amount of the Loan sanctioned to the User/Borrower.
18. LENDER: “Lender” shall mean Kreon.
19. MATERIAL ADVERSE EFFECT: “Material adverse effect” shall mean a material adverse effect on the ability of the User to comply with its obligations under this Loan Agreement.
20. OUTSTANDING AMOUNTS: “Outstanding Amount(s)” shall mean the amount due and payable by the Borrower including the Loan, interests, charges, penalty and other amounts payable by the User/Borrower to Kreon Finance, on the respective Due Date(s).
21. PROCESSING FEE: “Processing Fee” shall refer to the fee for processing of the loan or for usage of the Application calculated in the manner stipulated in this Agreement, on the loan amount.
22. TERM: “Term” shall mean the term of the Loan which may either be 30 (Thirty) calendar days or such time period as may be communicated to the Borrower on the date of disbursement and/or as may be decided by Kreon in accordance with the terms of this Loan Agreement.
23. USER ACCOUNT: “User Account” shall mean the registered account of the User with Kreon for use of the Application and services offered by Kreon.
24. YOU/YOUR/USER: “You/Your/User” shall mean any person who accesses, downloads, installs, utilizes, operates or views the Application or Services offered by and/or who avails a loan from Kreon through the Application.

III.TERMS FOR EXTENSION OF LOAN FACILITY

1. The Lender reserves the sole right and discretion to approve/reject the User’s request for a loan without having the need to provide any reasons for the same. The Lender reserves the sole right to accept or reject a request made by any User to use the Application.
2. The Lender may disburse the Loan or any part thereof (“Disbursement”) at its own discretion. The Loan Amount will be disbursed to the Borrower’s Bank Account on acceptance of the terms of the Loan Agreement, as per the latest Bank details provided by the Borrower. At no point of time, shall the Lender be responsible for any loss caused due to the Borrower having provided erroneous bank details and/or account information.
3. A non-refundable processing fee equal to 7% + with applicable taxes of the Loan Amount shall be charged by the Lender as a fee for the processing of the loans and for the usage of the Application towards the developmental support towards maintaining the Application. The processing fee shall be appropriated from the Loan Amount before the Disbursement is made to the User, and in the event of an extension of term, the processing fee shall be appropriated once again on the remainder of the Loan Amount however with a revised processing fee being applied in the manner detailed below:
   
   1. At the point of first extension: 7% + applicable taxes;
   2. At the point of second extension: 7.5% + applicable taxes;
   3. At the point of third extension: 8% + applicable taxes;
   4. At the point of 4th extension: 8.5% + applicable taxes.
4. The Borrower shall repay the Amounts Due through any one of the methods made available by Kreon. The Borrower is required to intimate the repayment details to the Lender by uploading payment details into the Application.
5. The Loan Amount and any Equated Monthly Installments payable by the Borrower to the Lender in terms of this Agreement shall stand repayable by the Borrower to the Lender on their respective due dates without the requirement of any notice or communication by the Lender to the Borrower to repay the Loan Amount.
6. If the Borrower wishes to repay any Loan Amount or Amounts Due or part thereof before its Due Date, the Borrower may do so and intimate the pre-payment details through the Application. However, Borrower acknowledges that the processing fee deducted at source for the term of the Loan and at the point of extension (as stipulated in this Loan Agreement), will not be reduced or refunded in case of prepayment of the Loan Amount or Amount Due.
7. Notwithstanding anything stated this Loan Agreement, it is expressly agreed by the Borrower that the Lender shall not be bound to continue the Loan or make any Disbursement, and the Lender may, in its sole and exclusive discretion, at any time, without assigning any reason, decline to make a Disbursement or otherwise discontinue the Loan consequently recalling the entire Loan, which decision shall be binding on, and shall not be questioned by, the Borrower, and the Lender shall not be liable for any damages or other consequences to the Borrower or any other person by reason thereof.
8. Any payments made by/on behalf/ for the Borrower or any realizations in relation to the Loan, shall be appropriated towards the Outstanding Amount and/ or Amount Due in the following order:
   
   1. Firstly, towards costs and expenses incurred by the Lender;
   2. Secondly, towards any charges, commissions and fees (wherever applicable);
   3. Thirdly, towards additional/ default interest;
   4. Fourthly, towards interest(as applicable);
   5. Fifthly, towards principal amount(s).
9. All repayments of the Loan Amount either by way of EMI or otherwise shall be given effect to by the Lender against the total Amount Due from the Borrower on receipt of such amount by the Lender;
10. Any statement of account furnished by the Lender shall be accepted by and be binding on the Borrower(s) and shall be conclusive proof of the correctness of the amounts mentioned therein, with exception for any manifest errors;
11. Borrower acknowledges that he/she shall be subjected to & be a subject of a continuous evaluation & assessment for the purposes of assignment of a StuCred Rating. The StuCred Rating may include an amalgamated assessment of the Borrower’s educational history, repayment of the Amounts Due or other requirements as determined by Kreon from time to time;
12. The StuCred Rating could be determined by the Lender itself or by any third-party agencies with the help of the Lender;
13. The Borrower consents that he/she shall accept as final the StuCred Rating arrived at by the Lender or a third-party agency commissioned by the Lender. The Lender or such third-party agency shall not be liable under any circumstances to share the assessment, computation, details or basis of arriving at the StuCred Rating.

IV.LENDER’S RIGHTS

The Lender shall, in relation to the Loan:

1. Have the sole right at any time during the tenure of this Loan Agreement to revise/reschedule the repayment terms/ amount of the Loan or the EMI or of any Amounts Due thereunder and the Borrower shall make all future repayments to the Lender according to such revised schedule on being notified by the Lender of such revision or rescheduling;
2. Have the sole right to amend any of the terms and conditions of this Loan Agreement including but not limited to revision of the Default Interest Rate, periodicity of compounding interest, method of effecting credit of the repayments without assigning any reason or notifying the Borrower. The Borrower agrees that such revision shall become applicable from the date of such revision in the records of the Lender;
3. Have the right to receive and adjust any payment/s that it may receive towards Amounts Due and/or payable by the Borrower under this Agreement;
4. Be entitled to disclose or publish any information about the Borrower, his/her account relationship with the Lender, details of the User, photographs, documents and/or any default committed by the Borrower (whether such information is provided by the Borrower or obtained by the Lender itself and whether in form of repayment conduct, rating or defaults) to its head office, other branch offices, affiliated entities, Reserve Bank of India, Credit Information Bureau of India, Government bodies/authorities, any refinancing agency, credit rating agency, assignees/potential assignees and such third parties as the Lender may in its sole and exclusive discretion, deem fit and proper;
5. Have the right, without notice to or without any consent of the Borrower, to approach, make enquiries or obtain information, from any person including third parties, other banks/finance entities/credit bureaus, Borrower’s employer/family members or any other person related to the Borrower, in order to assess track record, credit risk, to establish contact with the Borrower, for the purpose of recovery of dues from the Borrower or any other purpose it deems fit in connection with the Loan and/or Borrower.
6. Have the right to recall any money disbursed to the Borrower for failure to disclose or misrepresent any material information relevant to the Lender to determine the credit profile of the Borrower;
7. Have the right at any time, without any consent of or notice to the Borrower(s), to securitize, sell, assign, discount or transfer all or any part of the Lender’s rights and obligations under the Loan, this Loan Agreement or any other document, to any person(s) and in such manner and on such terms as the Lender may decide. The Borrower shall not be entitled to directly or indirectly assign or in any manner transfer, whether in whole or part, any rights, the benefit or obligation under the Loan;
8. Have the right at the sole discretion of the Lender, to renew the Term of the Loan subject to the payment of the processing fees for such extension by the Borrower, at the rate fixed in this Agreement.

V.BORROWER’S REPRESENTATIONS, WARRANTIES, COVENANTS AND UNDERTAKINGS

With a view to induce the Lender to grant the Loan to him/her, the Borrower, hereby represents/warrants to/ covenants/ undertakes with the Lender that he/she-

1. Is legally permitted to enter into this Loan/credit agreement, by virtue of age and mental fitness.
2. Shall promptly and without requiring any notice or reminder from the Lender, repay to the Lender the outstanding loan amount in accordance with the repayment terms in this Loan Agreement.
3. Where applicable, shall inform the Lender of any likely change in his/her employment or status in life.
4. The persons, if any, availing of and operating the Loan and each Disbursement for and on behalf of the Borrower are and will be duly authorized by the Borrower to do so.
5. Shall keep himself/herself aware of the rules of the Lender, pertaining to the Loan, and in force from time to time.
6. In the event that the bank account of the Borrower is being closed or being shifted from the bank registered in the User Account to any other bank, the Borrower shall within 3 (three) days of such closure or shifting of account, arrange to the satisfaction of the Lender, an alternative bank account for the purposes of this Loan Agreement.
7. The Borrower shall make good to, and save, defend and hold harmless the Lender, its directors, employees, shareholders, agents, consultants, representatives from or against all, direct or indirect, claims, damages, losses, costs and expenses, including attorneys’ fees arising out of/ in relation to any act, omission, breach, misrepresentation, fraud, misstatement or default by the Borrower and/or otherwise incurred by Lender as a result of any suit, investigation, etc, any other matter for any reason.
8. The Borrower authorizes the Lender to obtain a credit rating/credit report from a credit bureau, or other service provider that holds the Borrower’s credit history and related details. The Lender has the right to use the Borrower’s credit rating/credit report, social media profile/content, cellphone data and employment data for authentication, credit scoring and credit decision purposes.
9. The Borrower’s authorizes the Lender to display his/her StuCred Rating, along with some personal and credit information with the Borrower’s Loan details to third parties to facilitate their own credit decision.
10. The Borrower authorizes the Lender to verify information, and the Borrower agrees that the Lender may contact third parties to verify any such information.
11. Each of the representations and warranties contained herein shall be continuing representations and warranties and shall be deemed to have been made by the Borrower and on the date of acceptance of the terms and conditions and repeated by him on every day during the subsistence of this Loan Agreement including, in particular, on the date of, and on the date prior to each application for a Loan, and Disbursement of any part of the Loan Amount.

VI.DEFAULT

1. The following events shall constitute events of default (each an “Event of Default”), and upon the occurrence of any of them the entire Outstanding Amount shall become immediately due and payable by the Borrower and further enable the Lender inter alia to recall the entire Outstanding Amount and/or enforce any security and transfer/sell the same and/or take, initiate and pursue any actions/proceedings as deemed necessary by the Lender for recovery of the Outstanding Amount:
   
   1. Failure on Borrower’s part to perform any of the obligations or terms or conditions or covenants applicable in relation to the Loan including under this Loan Agreement or any other document, including non-payment in full of any part of the Outstanding Amount when due or when demanded by the Lender;
   2. Any misrepresentations or misstatement by the Borrower; or
   3. Occurrence of any circumstance or event which adversely affects the Borrower’s ability/capacity to repay the Outstanding Amount or any part thereof or perform any of the obligations with respect to the Amounts Due;
   4. If any attachment, distress, execution or other process against the Borrower/its assets or any of the security is threatened, enforced or levied upon by any person; or
   5. The event of death, insolvency, failure in business, commission of an act of bankruptcy of the Borrower, or change or termination of employment/profession/ business for any reason whatsoever.
2. In addition to any general lien or similar right to which the Lender may in law generally be entitled, the Lender may at its discretion use and enforce its right of set off and cross default between all the Loan Amounts sanctioned to the Borrower.
3. The Borrower’s default under one Loan or one Disbursement shall be deemed to be a default of all the other Loans availed by the Borrower, and notwithstanding anything contrary elsewhere contained in any writing or otherwise, the Lender shall regard all borrowings by the Borrower as immediately due and payable and the Lender shall be entitled to recall all the Loans Disbursements granted to the Borrower.
4. On the happening of any of the Events of Default, the Lender shall be entitled, without prejudice to any other right or remedy which the Lender may have under this Loan Agreement or otherwise under Applicable Law, and notwithstanding any subsequent acceptance of any repayment of the Amounts Due, take any of the steps specified herein below without any notice, except as specified herein, at any time after the occurrence of such event:
   
1. By a notice to the Borrower, to terminate this Loan Agreement and/or declare the Amount Due, due and payable forthwith;
2. Exercise and enforce all rights and remedies available to the Lender under this Loan Agreement and in Applicable Law for recovery of monies from the Borrower;
3. Appoint/nominate any agency, law firm or person to legitimately recover default amount from the Borrower.

VII.DEFAULT INTEREST

1. The Borrower shall pay the Amount Due (including the Default Interest Rate defined hereinafter), in the event of default, to the Lender from the date of such default. The Events of Default shall be as mentioned in the terms of this Loan Agreement. The date of default shall be exclusively determined by the Lender. The Lender shall levy interest on Default in the following manner on the Loan Amount,for each day of delay in repayment.
   

   Loan Amount (in Rs.)	Service charge added every 30 days	Daily Late Fees (In Rs.)
   500-2500	7% + GST	Rs 5
   3000-5000	7% + GST	Rs 10
   5500-7500	7% + GST	Rs 15
   8000-10000	7% + GST	Rs 20
   10500-12500	7% + GST	Rs 25
   13000-15000	7% + GST	Rs 30

2. The Borrower acknowledges that the rates of Default Interest agreed to by the Borrower are reasonable and the rates of Default Interest represent pre-estimates of losses and damages expected to be incurred by the Lender due to the non-payment of dues by the Borrower on or before the Due Date.
3. The Borrower acknowledges that the Loan is a commercial transaction and specifically waives any defense under usury or other Applicable Laws relating to or restricting interest.

VIII.SUSPENSION OR CANCELLATION

1. The Lender may, by notice to the Borrower, suspend the right of the Borrower to further Disbursements or cancel the undisbursed portion of the Loan Amount in whole or in part:
   
   1. If any Event of Default has occurred and is continuing or if the Event of Default is, in the reasonable opinion of Lender, imminent; or
   2. If any event or condition has occurred which has or can be reasonably expected to have a Material Adverse Effect on the Borrower’s ability to pay his/her dues; or
2. The exercise by the Lender of its right of suspension shall not prevent the Lender from exercising its right of cancellation, either for the same or any other reason specified above and shall not limit any other provision of this Loan Agreement. Upon any cancellation, the Borrower shall pay to Lender all Outstanding Amounts under this Agreement up to the date of cancellation forthwith and failure to pay the Outstanding Amount on the date of cancellation will incur a payment of the Default Interest along with the Outstanding Amount in terms of Clause VII above.

IX.MISCELLANEOUS

1. Notices: Any notice, approvals, instructions, demand and other communications given or made by the Lender shall be deemed to be duly given and served if sent by courier, normal post, registered post, facsimile, electronic mail, personal delivery, SMS or by pre-paid registered mail addressed to the Borrower’s address, phone/ mobile number, fax number or email as given in the Application and such notice and service shall be deemed to take effect on the third working day following the date of the posting thereof in case of courier, normal post, registered post, at the time of delivery if given by personal delivery, upon receipt of a transmission report if given by facsimile, upon sending the electronic mail or SMS if given by electronic mail or SMS.
2. The Borrower undertakes to keep the Lender informed at all times in writing of any change in the mailing address, email id, phone and mobile number(s) as provided in the Application and to obtain the Lender’s acknowledgement on the intimation given for any such change.
3. The Loan Agreement and any other documents in connection with the Loan shall be governed by the applicable laws of India. The parties hereto expressly agree that all disputes arising out of and/or relating to the Loan, this Loan Agreement or any other relevant document shall be subject to the exclusive jurisdiction of the courts in Chennai. Any default on amounts due under this Loan Agreement or any disputes arising in respect of or in relation to this Loan Agreement shall be referred to arbitration at Chennai in accordance with the provisions of the Indian Arbitration and Conciliation Act, 1996 as may be amended, or its re-enactment, by a sole arbitrator, appointed by the Lender. The costs of such arbitration shall be borne by the losing party or otherwise as determined in the arbitration award. If a party is required to enforce an arbitral award by legal action of any kind, the party against whom such legal action is taken shall pay all reasonable costs and expenses and attorney’s fees, including any cost of additional litigation or arbitration taken by the party seeking to enforce the award.
4. Notwithstanding any suspension or termination of this Loan Agreement as specified hereinabove, all the provisions of this Loan Agreement for the benefit or protection of the Lender and its interests shall continue to be in full force and effect as specifically provided in this Loan Agreement.
5. The Borrower agrees that he is liable to pay the stamp duty and other fees as applicable on all the documents/ instruments executed by and between the parties or any of them pursuant to the Loan granted by the Lender to the Borrower including but not limited to this Loan Agreement and keep the Lender indemnified against all loss, costs, charges and expenses that may be suffered or incurred by the Lender by way of any direct or indirect taxes such as service tax, transaction tax, stamp duty or other fees of any nature. Additionally, the Borrower shall also be liable to make payment of all costs, charges, expenses including interest and penalty, if any, payable as a result of non-payment or payment of deficient stamp duty on any of the aforesaid documents, including but not limited to this Loan Agreement and all legal costs as between the attorney and clients on a full indemnity basis.
6. Enforcement of the terms of this Loan Agreement is solely in the Lender’s discretion and failure to enforce a provision in some instances does not constitute a waiver of the right to enforce such provision in other instances.
7. In case any provision/s of this Agreement is/are rendered invalid or unenforceable or void by operation of any law, rule or regulation, then such an event would not affect the validity or enforceability of any other provision of this Agreement.

X.KEY FACT STATEMENT

I HEREBY CONFIRM THAT I AM OF THE LEGAL CAPACITY TO ACCEPT THE TERMS AND CONDITIONS OF THE LOAN AGREEMENT. I ACCEPT THE TERMS AND CONDITIONS OF THE LOAN AGREEMENT. I CONFIRM THAT I HAVE FULLY UNDERSTOOD THESE TERMS AND CONDITIONS.