Ƶ

Pledge Note for India

Pledge Note Template for India

A Pledge Note is a formal legal document used in India that creates and evidences a pledge of movable property as security for a debt or other obligation. The document is governed by Indian law, particularly the Indian Contract Act, 1872 and Transfer of Property Act, 1882. It details the pledged assets, secured amount, repayment terms, and rights and obligations of both pledgor and pledgee. The document serves as crucial evidence of the security interest created and can be enforced in Indian courts in case of default.

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.

Download a Standard Template

4.6 / 5
4.8 / 5
Access for free
OR

Alternatively: Run an advanced review of an existing
Pledge Note

Let Ƶ's market-leading legal AI identify missing terms, unusual language, compliance issues and more - in just seconds.

What is a Pledge Note?

A Pledge Note is a fundamental security document used in Indian financing transactions where movable property is offered as collateral. This document becomes necessary when a borrower (pledgor) needs to secure their obligations to a lender (pledgee) by creating a pledge over movable assets such as shares, securities, inventory, or other valuable moveables. The Pledge Note, governed by Indian law, particularly the Transfer of Property Act and Indian Contract Act, serves as conclusive evidence of the pledge arrangement. It contains essential details including the identity of the parties, description of pledged assets, secured obligations, repayment terms, and enforcement mechanisms. The document is widely used in both corporate and individual lending scenarios and plays a crucial role in secured lending transactions in India.

What sections should be included in a Pledge Note?

1. Date and Place: Specifies the date of execution and location where the pledge note is executed

2. Parties: Identifies the pledgor (person creating the pledge) and pledgee (person in whose favor the pledge is created)

3. Background: Brief context of the underlying transaction necessitating the pledge

4. Definitions: Key terms used in the pledge note

5. Details of Pledged Property: Specific description and identification of the property being pledged

6. Amount Secured: The principal amount and other charges secured by the pledge

7. Terms of Repayment: Repayment schedule, interest rate, and payment mechanisms

8. Rights and Obligations: Respective rights and obligations of pledgor and pledgee

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

10. Enforcement Rights: Pledgee's rights and process for enforcing the pledge upon default

11. Representations and Warranties: Standard declarations by the pledgor regarding ownership and authority

12. Governing Law: Specification that Indian law governs the pledge note

13. Execution: Signature blocks and witness requirements

What sections are optional to include in a Pledge Note?

1. Insurance: Required when the pledged property needs to be insured

2. Maintenance of Pledged Property: Needed when the pledged property requires specific maintenance or care

3. Valuation Mechanism: Include when periodic valuation of the pledged property is required

4. Top-up Provisions: Required when additional security may be needed based on value fluctuations

5. Substitution Rights: Include when the pledgor has the right to substitute the pledged property

6. Power of Attorney: Optional clause granting specific powers to the pledgee

7. Tax Provisions: Include when there are specific tax implications to be addressed

8. Dispute Resolution: Optional detailed dispute resolution mechanism beyond basic jurisdiction clause

What schedules should be included in a Pledge Note?

1. Schedule 1 - Description of Pledged Property: Detailed description, identification numbers, and specifications of the pledged property

2. Schedule 2 - Repayment Schedule: Detailed breakdown of payment dates, amounts, and interest calculations

3. Schedule 3 - Form of Notice: Standard format for notices to be issued under the pledge note

4. Appendix A - Copy of Board Resolution: If pledgor is a company, copy of board resolution authorizing the pledge

5. Appendix B - Existing Encumbrances: List of any existing charges or encumbrances on the pledged property

6. Appendix C - Insurance Details: Details of insurance coverage over the pledged property, if applicable

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

India

Publisher

Ƶ

Document Type

Promissory Note

Sector

Banking

Cost

Free to use
Relevant legal definitions



































Clauses






























Relevant Industries

Banking

Financial Services

Manufacturing

Trading

Real Estate

Infrastructure

Retail

Agricultural

Technology

Pharmaceutical

Automotive

Telecommunications

Mining

Energy

Relevant Teams

Legal

Finance

Credit

Risk Management

Compliance

Corporate Secretarial

Treasury

Corporate Banking

Operations

Business Development

Documentation

Security and Collateral Management

Relevant Roles

Legal Counsel

Finance Manager

Credit Manager

Relationship Manager

Risk Officer

Compliance Officer

Company Secretary

Chief Financial Officer

Treasury Manager

Security Trustee

Loan Officer

Corporate Banking Officer

Credit Analyst

Legal Manager

Managing Director

Business Development Manager

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

Find the exact document you need

Construction Promissory Note

An Indian law-compliant promissory note specifically designed for construction-related payments and obligations, governed by the Negotiable Instruments Act and construction regulations.

Download

Straight Note (Real Estate)

An Indian law-governed promissory note secured by real estate property, documenting terms of loan repayment and property security details.

Download

Promissory Note For Lending Money

A legally binding financial instrument under Indian law that documents an unconditional promise to pay a specified sum of money, including loan terms and repayment conditions.

Download

Promissory Note For Housing Loan

An Indian legal document containing a borrower's unconditional promise to repay a housing loan, governed by the Negotiable Instruments Act, 1881.

Download

Promissory Note For Bank Loan

A legally binding financial instrument under Indian law that documents a borrower's promise to repay a specific loan amount to a bank with defined terms and conditions.

Download

Iou Promissory Note

A legally binding financial instrument under Indian law wherein one party promises to pay a specified sum to another party, either on demand or at a fixed future date.

Download

Promissory Note For Real Estate Purchase

An Indian law-compliant promissory note documenting a buyer's promise to pay for real estate property, including payment terms and property details.

Download

Promissory Note

A legally binding financial instrument under Indian law containing an unconditional written promise to pay a specified sum of money to a named party.

Download

Secured Demand Note

An Indian law-governed financial instrument combining a demand promissory note with security arrangements, enabling secured lending with on-demand repayment features.

Download

Promissory Letter For Work

An Indian legal document combining a promissory note with work commitments, governed by Indian contract law and negotiable instruments legislation.

Download

International Promissory Note

An Indian law-governed promissory note for international transactions, containing an unconditional promise to pay a specified sum with cross-border payment provisions.

Download

Loan Note

An Indian law-governed debt instrument documenting loan terms, repayment obligations, and security arrangements between lender and borrower.

Download

Unsecured Promissory Note

An Indian law-governed financial instrument containing an unconditional written promise to pay a specified sum without any security or collateral.

Download

Secured Promissory Note

An Indian law-governed financial instrument combining a promise to pay with security interests in assets, documenting a secured debt obligation with specified payment and enforcement terms.

Download

Promissory Note With Notary

An Indian law-governed notarized financial instrument containing an unconditional written promise to pay a specified sum of money under defined terms.

Download

Promissory Note Seller Financing

A legally binding financial instrument under Indian law documenting a buyer's promise to pay a seller over time, with specified payment terms and conditions.

Download

Note Trust Deed

An Indian law-governed document establishing a trust structure for note issuances, defining the relationship between issuer, trustee, and noteholders.

Download

Shareholder Promissory Note

An Indian law-governed financial instrument documenting a company's promise to pay a specified sum to a shareholder, including payment terms and conditions.

Download

Simple Note Payable Agreement

An Indian law-governed agreement documenting a promise to pay a specified sum of money, with defined payment terms and conditions.

Download

Senior Promissory Note

An Indian law-governed debt instrument containing a senior-ranking promise to pay a specified sum with defined terms and conditions.

Download

Recourse Promissory Note

An Indian law-governed financial instrument containing a written promise to pay a specified sum, with recourse rights against the maker or endorsers in case of default.

Download

Promissory Note Mortgage

An Indian legal instrument combining a promissory note with a mortgage deed, creating both a payment obligation and security interest in real property under Indian law.

Download

Promise To Pay Letter For Rent

An Indian law-compliant formal written commitment from a tenant acknowledging rental dues and promising payment according to a specified schedule.

Download

Note Agreement

An Indian law-governed promise to pay document that creates a legally binding debt obligation between a borrower and lender, including payment terms and conditions.

Download

Interest Only Balloon Note

An Indian law-governed loan document structuring interest-only payments with a final balloon payment, compliant with RBI regulations and Indian Contract Act.

Download

Legal Iou Form

A legally binding debt acknowledgment document under Indian law that records a borrower's promise to repay a specified amount to a lender under defined terms.

Download

Medical Promissory Note

An Indian legal document combining a financial promise to pay with medical service details, governed by the Negotiable Instruments Act and healthcare regulations.

Download

Standard Promissory Note Secured

An Indian law-governed financial instrument containing a promise to pay a specific sum with interest, secured by collateral, creating enforceable rights for the lender over the security in case of default.

Download

Business Loan Promissory Note

An Indian law-governed promissory note documenting a business borrower's unconditional promise to repay a specified loan amount with interest to a lender.

Download

Old Promissory Note

A legally binding written promise to pay a specified sum under Indian law, governed by the Negotiable Instruments Act, 1881.

Download

Multiple Advance Promissory Note

An Indian law-governed financial instrument that enables multiple drawdowns under a single promissory note, combining credit line flexibility with legal enforceability.

Download

Future Advance Promissory Note

An Indian law-governed financial instrument that combines a traditional promissory note with provisions for future monetary advances up to a predetermined maximum amount.

Download

Consolidated Promissory Note

An Indian law-compliant financial instrument that combines multiple promissory notes or debt obligations into a single legally binding document.

Download

Unsecured Demand Promissory Note

An Indian law-governed unsecured financial instrument containing an unconditional promise to pay a specified sum on demand, regulated under the Negotiable Instruments Act, 1881.

Download

Unsecured Promissory Note Issued By A Corporation

An Indian law-governed financial instrument containing a corporation's unconditional promise to pay a specified sum without security.

Download

Promissory Note Letter For Payment

A legally binding financial instrument under Indian law where one party promises in writing to pay a specified sum of money to another party, governed by the Negotiable Instruments Act, 1881.

Download

Credit Card Promissory Note

An Indian law-compliant financial instrument that documents a credit card holder's promise to repay outstanding credit card debt to the issuing bank.

Download

6 Month Promissory Note

An Indian law-governed promissory note containing an unconditional promise to pay a specified sum within six months, structured under the Negotiable Instruments Act, 1881.

Download

Simple Promissory Letter

A legally binding document under Indian law containing an unconditional promise to pay a specified sum of money to a designated party.

Download

Promissory Note With Balloon Payment

An Indian law-governed promissory note featuring regular payments and a larger final balloon payment, structured under the Negotiable Instruments Act, 1881.

Download
See more related templates

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