The Forbearance Agreement Commercial Loan is a critical document used in Indian banking and finance practice when a borrower faces difficulties in meeting their loan obligations but demonstrates potential for recovery. This document becomes relevant when a borrower defaults or anticipates defaulting on their commercial loan obligations, but the lender believes that providing temporary relief is more beneficial than immediate enforcement. The agreement, governed by Indian law and regulated by the Reserve Bank of India's guidelines, details the terms of forbearance, including the forbearance period, modified payment terms, additional security requirements, and ongoing obligations of the borrower. It serves as a bridge arrangement that helps businesses navigate temporary financial difficulties while providing lenders with additional safeguards and maintaining their enforcement rights. The document must comply with Indian banking regulations, contract law, and debt recovery legislation, making it a complex but essential tool in commercial lending relationships.
Your data doesn't train Genie's AI
You keep IP ownership of your information
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
OR
Let Ƶ's market-leading legal AI identify missing terms, unusual language, compliance issues and more - in just seconds.
1. Parties: Identification of the lender, borrower, and any guarantors or security providers
2. Background: Recitals describing the original loan agreement, current default status, and borrower's request for forbearance
3. Definitions: Definitions of key terms including Forbearance Period, Existing Events of Default, and other relevant terms
4. Acknowledgment of Debt: Borrower's confirmation of outstanding amounts and existing defaults
5. Forbearance Terms: Specific terms of the forbearance including duration, conditions, and any modified payment terms
6. Conditions Precedent: Conditions that must be satisfied before the forbearance becomes effective
7. Borrower's Covenants: Ongoing obligations of the borrower during the forbearance period
8. Representations and Warranties: Updated representations and warranties from the borrower
9. Events of Default: Additional or modified events of default specific to the forbearance agreement
10. Rights and Remedies: Lender's rights upon termination of forbearance or new default
11. Reservation of Rights: Preservation of lender's rights under original loan documents
12. Fee and Expenses: Any fees or costs associated with the forbearance
13. Governing Law and Jurisdiction: Specification of Indian law and relevant jurisdiction
14. Execution: Signature blocks and execution formalities
1. Additional Security: Include when new security or guarantees are being provided as part of forbearance
2. Interest Rate Modifications: Include when forbearance includes changes to interest rates or interest calculations
3. Restructuring Plan: Include when forbearance is part of a larger restructuring strategy
4. Reporting Requirements: Include when additional reporting obligations are imposed during forbearance period
5. Third Party Consents: Include when consents from other creditors or stakeholders are required
6. Release Provisions: Include when mutual releases are part of the forbearance arrangement
7. Step-In Rights: Include when lender requires additional control rights during forbearance
1. Schedule 1 - Existing Facility Details: Details of original loan agreement and amendments
2. Schedule 2 - Outstanding Amounts: Detailed breakdown of current outstanding debt
3. Schedule 3 - Existing Events of Default: List of all existing defaults under the original facility
4. Schedule 4 - Modified Payment Schedule: New payment terms during forbearance period
5. Schedule 5 - Additional Security Details: Details of any new security or guarantees
6. Appendix A - Form of Compliance Certificate: Template for periodic compliance reporting
7. Appendix B - Required Consents: List of required third-party consents and their status
Relevant legal definitions
Clauses
Relevant Industries
Manufacturing
Real Estate
Infrastructure
Healthcare
Hospitality
Retail
Agriculture
Information Technology
Transportation
Energy
Mining
Telecommunications
Construction
Automotive
Steel and Metal Processing
Relevant Teams
Legal
Finance
Corporate Banking
Risk Management
Compliance
Treasury
Credit Administration
Loan Recovery
Corporate Secretarial
Business Development
Portfolio Management
Relevant Roles
Chief Financial Officer
Finance Director
Corporate Lawyer
Legal Counsel
Banking Relationship Manager
Credit Risk Manager
Restructuring Officer
Treasury Manager
Compliance Officer
Company Secretary
Risk Assessment Manager
Corporate Banking Head
Debt Restructuring Specialist
Recovery Manager
Portfolio Manager
Find the exact document you need
Pre Contract Agreement Car (Finance)
An Indian law-governed preliminary agreement setting out the framework and conditions for a potential car financing arrangement between a lender and prospective borrower.
find out more
Mortgage Servicing Agreement
An agreement governing mortgage servicing operations in India, establishing the relationship between lenders and servicers under Indian banking laws.
find out more
Letter For Lending Money To Someone
An Indian law-compliant letter document that formalizes a money lending arrangement between parties, detailing loan terms and conditions.
find out more
Lending Money Letter
A formal Indian law-compliant document establishing loan terms between parties, including amount, interest, and repayment conditions.
find out more
Lending Form
An Indian law-compliant lending form that documents loan agreements between lenders and borrowers, incorporating key regulatory requirements and transaction terms.
find out more
Hardware Loan Agreement
An Indian law-governed agreement establishing terms for temporary hardware loans between parties, including usage conditions, maintenance requirements, and return specifications.
find out more
Borrow Agreement Form
An Indian law-governed agreement establishing terms and conditions for borrowing arrangements, including loan amount, interest rates, and repayment terms.
find out more
Business Loan Broker Agreement
An Indian law-governed agreement establishing terms for loan broking services between a financial intermediary and a business client, including service scope and regulatory compliance requirements.
find out more
Borrowing Money Letter
A formal letter document governed by Indian law that establishes loan terms between borrower and lender, serving as a legally binding record of the borrowing arrangement.
find out more
Unsecured Personal Loan Agreement
An Indian law-governed agreement for unsecured personal loans, establishing loan terms and parties' obligations without requiring collateral.
find out more
Two Wheeler Loan Agreement
An Indian law-governed agreement establishing terms and conditions for two-wheeler vehicle financing, including loan details, security arrangements, and party obligations.
find out more
Term Loan Facility Agreement
An Indian law-governed agreement setting out terms and conditions for a term loan facility, including loan amount, interest, repayment, and security arrangements.
find out more
Syndicated Facility Agreement
An Indian law-governed agreement establishing terms for a loan provided by multiple lenders (syndicate) to a borrower, detailing facility terms and regulatory compliance requirements.
find out more
Simple Mortgage Deed Draft
An Indian legal document creating a charge on immovable property as security for a loan, governed by the Transfer of Property Act, 1882.
find out more
Simple Mortgage Agreement
An Indian legal document creating a security interest in real property as loan collateral, governed by the Transfer of Property Act, 1882.
find out more
Simple Loan Agreement Form
An Indian law-governed agreement establishing terms and conditions between lender and borrower for a basic loan transaction.
find out more
Self Help Group Loan Agreement Form
An Indian jurisdiction agreement establishing loan terms between a financial institution and a Self Help Group, incorporating group liability and microfinance regulations.
find out more
Private Loan Agreement For (Real Estate)
An Indian law-governed agreement establishing terms and conditions for private lending secured against real estate property, including loan terms, security arrangements, and enforcement mechanisms.
find out more
Peer To Peer Lending Agreement
An RBI-compliant agreement governing peer-to-peer lending transactions in India, establishing terms between lender and borrower through a regulated P2P platform.
find out more
Personal Loan Letter
An Indian-law governed letter documenting personal loan terms between parties, including loan amount, interest, repayment schedule, and obligations.
find out more
Personal Loan Contract Form
An Indian law-governed contract template establishing terms and conditions for personal loans between financial institutions and individual borrowers.
find out more
Personal Loan Agreement Document
An Indian law-governed agreement documenting terms and conditions of a personal loan between lender and borrower, including loan amount, interest, repayment terms, and legal obligations.
find out more
Personal Loan Agreement Contract
An Indian law-governed agreement establishing terms and conditions for a personal loan between a lender and borrower, including loan amount, interest, and repayment terms.
find out more
Personal Line Of Credit Agreement
An Indian law-governed agreement establishing a personal line of credit facility between a financial institution and an individual borrower, setting out terms for revolving credit access.
find out more
Small Loan Contract
An Indian law-governed agreement establishing terms and conditions for a small-scale loan between lender and borrower, including loan amount, interest rates, and repayment terms.
find out more
Small Loan Agreement
An Indian law-compliant agreement for documenting small-scale lending arrangements, specifying loan terms, repayment conditions, and security provisions.
find out more
Pro Forma Loan Agreement
A standard-form loan agreement template compliant with Indian law and banking regulations, establishing terms for lending transactions.
find out more
Loan Car Form
An Indian-compliant legal document establishing terms and conditions for temporary vehicle loans between parties, adhering to Indian motor vehicle and contract laws.
find out more
Mortgage Subordination Agreement
An Indian law-governed agreement that establishes priority between multiple mortgages on a property, where one mortgage holder agrees to subordinate their security interest to another.
find out more
Family Member Promissory Note
An Indian-law governed promissory note formalizing loan agreements between family members, establishing legally binding terms while preserving familial relationships.
find out more
Vendor Finance Loan Agreement
An Indian law-governed agreement establishing terms for vendor financing, including loan details, security arrangements, and party obligations.
find out more
Employee Computer Loan Agreement
An Indian law-governed agreement establishing terms for employer-provided computer equipment loans to employees, including repayment and usage conditions.
find out more
Acknowledgement Of Debt Agreement
An Indian law-governed agreement formally recognizing a debt obligation between parties, including repayment terms and interest calculations.
find out more
Balloon Loan Agreement
An Indian law-governed loan agreement featuring smaller periodic payments with a large final balloon payment, structured under Indian banking and contract laws.
find out more
Loan Agreement Between Companies
An Indian law-governed agreement establishing terms and conditions for an inter-company loan, including loan amount, interest, repayment terms, and parties' obligations.
find out more
Inter Lender Agreement
An Indian law-governed agreement establishing rights and relationships between multiple lenders in a financing arrangement, compliant with Indian banking regulations.
find out more
Overagreement
An Indian law-governed master agreement establishing framework terms for ongoing business relationships and future specific transactions.
find out more
Litigation Financing Agreement
An Indian law-governed agreement establishing terms for third-party funding of legal proceedings, including funding commitments, returns, and control mechanisms.
find out more
Credit Terms Agreement
An India-governed agreement establishing credit facility terms between lender and borrower, compliant with Indian banking regulations and enforcement mechanisms.
find out more
Subordinated Loan Agreement
An Indian law-governed agreement establishing a subordinated loan facility where the lender's claims are contractually subordinate to senior debt obligations.
find out more
ұԾ’s Security Promise
Genie is the safest place to draft. Here’s how we prioritise your privacy and security.
Your documents are private:
We do not train on your data; ұԾ’s AI improves independently
All data stored on Genie is private to your organisation
Your documents are protected:
Your documents are protected by ultra-secure 256-bit encryption
We are ISO27001 certified, so your data is secure
Organizational security:
You retain IP ownership of your documents and their information
You have full control over your data and who gets to see it
.png)