Credit Purchase Agreement Template for India

The Credit Purchase Agreement serves as a fundamental document in Indian financial transactions where purchases are made using credit facilities. This agreement is essential when a financial institution extends credit to a purchaser for acquiring specific goods or services, whether in retail, commercial, or industrial contexts. The document complies with Indian banking regulations, the Reserve Bank of India guidelines, and relevant financial laws, providing a comprehensive framework for credit-based purchases. It is commonly used in various scenarios ranging from consumer durables financing to industrial equipment purchases, incorporating necessary safeguards for both the credit provider and the purchaser. The agreement's structure accommodates various security arrangements, payment terms, and regulatory requirements specific to the Indian financial sector.

1. Parties: Identification of the credit provider and the purchaser/borrower with complete details including registration numbers, addresses and authorized representatives

2. Background: Context of the credit purchase arrangement, including the purpose of the credit facility and brief description of the underlying transaction

3. Definitions: Definitions of key terms used throughout the agreement, including financial terms, technical terms, and interpretation clauses

4. Credit Facility Details: Specific details of the credit facility including principal amount, purpose, and utilization terms

5. Interest and Charges: Interest rate specifications, calculation method, additional charges, fees, and taxes applicable

6. Repayment Terms: Payment schedule, installment amounts, prepayment terms and conditions

7. Security: Details of any security, collateral, or guarantee provided for the credit facility

8. Representations and Warranties: Statements of fact and assurances given by both parties

9. Covenants: Positive and negative obligations of the borrower during the term of the agreement

10. Events of Default: Circumstances constituting default and consequences thereof

11. Remedies: Rights and remedies available to the credit provider in case of default

12. Term and Termination: Duration of the agreement and circumstances for early termination

13. Governing Law and Jurisdiction: Applicable law and courts having jurisdiction over disputes

14. Notices: Method and addresses for serving notices under the agreement

15. General Provisions: Standard boilerplate clauses including assignment, amendments, severability, and entire agreement