Term and condition
- Home
- Term and condition
INTRODUCTION
THIS AGREEMENT is made on the day, date and year as mentioned in the Loan Sanction Letter between:
- BMFC. (hereinafter referred to as “ACSI”) of the ONE PART;
- The person specified in the loan sanction letter as Borrower/ Co-Borrower/Guarantor (hereinafter referred to as “Borrower”) of the OTHER PART;
- Relying upon the representations of the Borrower and at the request of the Borrower, ACSI agrees to make available/grant the Loan (as defined below) to the Borrower as stipulated in the Loan Application, Loan Sanction Letter and upon acceptance of the terms and conditions more particularly stated herein.
DEFINITIONS
In these Terms and Conditions, the capitalized terms listed below shall have the following meanings:
- “Authorised Bank” means the bank authorized by ACSI to collect payments from the Borrower on its behalf.
- “Borrower” means the person or persons named in the Loan Sanction Letter, which term shall include Co-Borrower. Any references to one gender include all genders.
- “City of registration” means the location wherein the Vehicle is registered or to be registered with the local registering authority.
- “Credit information” means all information, documents, representations, particulars of operations and business, financial information, representations on future business prospects and clarifications which has been or may hereafter be furnished by the Borrower to ACSI from time to time.
- “Dealer” means the entity which sells the Vehicle to the Borrower.
- “Down payment” means an upfront amount paid by the Borrower to the Dealer towards the Borrower’s contribution towards the purchase price of the Vehicle.
- “EMI” means equated monthly installments being installments of fixed amounts comprising of the principal amount of the Loan and interest charged thereon payable monthly towards repayment of the Loan Amount throughout the Loan Term and other fees and charges as specified in the Loan Sanction Letter.
- “Loan”/“Loan Amount” means the credit/finance which ACSI advances/lends to the Borrower as stipulated in the Loan Sanction Letter.
- “Loan Application” means the application form for availing finance /credit for purchase of the vehicle made by the Borrower to ACSI.
- “Loan Sanction Letter” means the sanction letter provided by ACSI to the Borrower and accepted by the Borrower setting out the terms of the Loan, as may be amended, supplemented or replaced from time to time.
- “Loan Tenure” means the duration of the Loan as stipulated in the Loan Application and Loan Sanction Letter.
- “Outstanding Dues” means all amounts payable by the Borrower to ACSI pursuant to these terms, including without limitation the principal Loan Amount and interest on the Loan Amount alongwith all charges & payables due to ACSI.
- “Rate of interest” means the fixed rate of interest referred to in the Loan Sanction Letter, duly revised by ACSI depending upon the Interest rate model policy of the Company.
- “Registering authority” shall mean an authority empowered to register motor vehicles under Chapter IV of the Motor Vehicles Act, 1988 (as amended from time to time).
- “Registration Certificate” means the certificate of registration of the Vehicle or such similar document with different nomenclature issued by the Registering authority with which the Vehicle is registered under the applicable motor vehicles law.
- “Vehicle” means the new or used two wheeler/four wheeler motor vehicle acquired/to be acquired by the Borrower in respect of which the Loan is granted /to be granted by ACSI, hypothecated/ to be hypothecated to ACSI and shall include any equipment in respect of the vehicle, and all accretions, additions and replacements to the vehicle and/or the equipment, whenever made, including by way of body building and engine up-gradation and any other accessories that may be purchased by the Borrower using the Loan or any part thereof etc. inclusive of all the benefits and warranties provided by the manufacturer and the dealer. Any term/expression not defined herein, if defined within the General Clauses Act, 1897, shall carry the same meaning as assigned to it under the said Act.
REPAYMENT OF LOAN
- The Borrower shall repay the Loan Amount together with interest charged thereon by way of EMIs to be paid in monthly installments as specified in the Loan Sanction Letter.
- The due date for payment of EMI is indicated in the Loan Sanction Letter and it is understood that time is of the essence for payment of the EMI.
- ACSI shall be entitled to revise the rate of interest at any time and from time to time as per its policy and/or applicable laws and regulations, if any, during the Loan Tenure, at its discretion and such revised interest shall be deemed to form part of the Loan and the Borrower shall also beliable to pay such revised amount of interest in such manner and within such period as may be determined by ACSI in its sole discretion. The Borrower shall be notified in advance of any change in the rates of interest and any such change shall be applicable only prospectively.
- The EMI shall automatically stand revised by reason of revision in any rates, taxes, charges and levies that may be levied on the transaction contemplated herein or may become payable by ACSI by virtue of these terms and conditions. Such increase in rates, taxes, charges and levies as stated above shall automatically form part of the Loan. The increase in such EMI shall be notified to the Borrower by ACSI from time to time.
- All sums payable by the Borrower to ACSI shall be paid without any deductions whatsoever; discharge for payment will be given only on realization of the amount due.
- If there is any delay in payment of an EMI by the Borrower, ACSI shall be entitled to charge an overdue penalty fee at a rate mentioned in Loan Sanction Letter and to recover the balance amount together with such fee.
- Notwithstanding anything contained herein, the Outstanding Dues and all other sums whatsoever payable by the Borrower to ACSI hereunder and/ or in connection with the Loan shall be payable by the Borrower to ACSI on demand. ACSI may, at any time, in its sole discretion and without assigning any reason, call upon the Borrower to pay the Outstanding Dues and thereupon the Borrower shall within [15] days of being so called upon, pay the whole of the Outstanding Dues to ACSI without any delay or demur.
- The Borrower shall not, without the approval of ACSI, be entitled to prepay the EMI or any part thereof before the expiry of Loan Tenure. ACSI may, at its discretion, give approval to the Borrower for the prepayment of any amounts due under the Loan, subject to the Borrower fulfilling any terms and conditions stipulated by ACSI including payment of prepayment charges at the rates set out in the Loan Sanction Letter.
MODE OF PAYMENT
- Payment by Post Dated Cheques
In case the payment of the monthly EMIs are being made by the post-dated cheques (which mode of payment may be refused by ACSI in its sole discretion), the Borrower shall hand over the post- dated cheques in favor of ACSI covering all or any of the amounts due to ACSI towards the Loan. The Borrower hereby irrevocably and unconditionally agrees and covenants:- that each such post-dated cheque shall carry the date on which the relevant EMI is due;
- that the post-dated cheques given by the Borrower shall be valid as from the respective dates of such cheques and that at any point of time, the Borrower shall not claim that they are invalid due to any reason whatsoever;
- that he/she/it shall ensure availability of sufficient funds in the account on which such post-dated cheques have been drawn;
- that the Borrower shall not at any time close his/her account and/or issue any notice instructing ACSI not to present any of such cheques for encashment;
- that the Borrower shall not instruct his/her/its Bank to stop payment on any of such cheques; and
- that in case, the Borrower changes/desires to change his/her Bank of which the post-dated cheques deposited with ACSI are drawn, the Borrower shall be entitled to replace the cheques and/or issue fresh cheques only on payment of swapping charges to ACSI as specified in the Loan Sanction Letter. The Borrower hereby acknowledges that one of the essential terms of sanctioning the Loan is made on the basis of the post-dated cheques, issued by the Borrower in favour of ACSI towards repayment of EMIs payable by the Borrower.
- Payment by Electronic Clearing System
Payment by Automatic Clearing House Mandate (ACH) : In case the payment of EMI is to be made by way of ACH mandate covering all or any of the amounts due to ACSI towards the Loan, the Borrower hereby irrevocably and unconditionally agrees and covenants:
- that the ACH mandate given, at or before the execution of these terms, will be valid as on the date of the ACH mandate and at any point of time the Borrower shall not claim that they are invalid due to any reason whatsoever;
- the Borrower further confirms that he/she/it shall ensure availability of sufficient funds in the account on which such ACH mandate has been drawn and the Borrower shall not at any time close his/her/its account or instruct his/her/its Bank to stop payment on any of such ACH mandates and/or withdraw or change such mandate without prior intimation to ACSI;
- where the funds in the relevant bank account are not sufficient to honor the ACH mandate as per its terms, the Borrower shall not object to ACSI presenting such ACH mandate all over again for recovery of any amount due and payable hereunder;
- that the Loan has been made available by ACSI on the basis of ACH mandate issued by the Borrower in favour of ACSI towards repayment of EMI payable by the Borrower to ACSI and details of the ACH mandate are more fully described in the Loan Application;
- that in case the Borrower changes/desires to change his/her Bank, the Borrower shall be entitled to replace the ACH mandate and issue a fresh ACH mandate for the new Bank only on payment of swapping charges to ACSI at the rates specified in the Loan Sanction Letter.
