Interest Agreement

(For EBLR based loans)

Date: ______________
To
Union Bank of India
____________________

In consideration of your Bank sanctioning/granting the loans/credit facilities from time to time or for
such other sufficient consideration, I/We hereby agree as under:

1. This agreement shall form part and parcel of the financing and security documents, formats, auxiliary
documents (together called Finance Documents) and the Finance Documents shall be read as if the
contents hereof are expressly incorporated therein.

2. I/We agree that this agreement will supersede the clause/paragraph pertaining to rate of interest and
the manner of charging/applying interest contained in the Finance Documents.

3. The details of the Loans/credit facilities sanctioned/granted to me/us are set out in the Schedule
hereto and the applicable rate of interest to each of such Loans/credit facilities is as mentioned in the
relevant column under this agreement.

4. I/We agree that by virtue of this agreement, the Bank has every right to recover interest due and
payable at the applicable rates set out in the Schedule hereto separately even though any payments
received were adjusted against principal amounts.

5. I/We agree that upon execution of this agreement, any reference to the rate of interest in any
Finance Documents will mean External Benchmark Lending Rate (EBLR) comprising of RBI Repo Rate and
Spread + Premium and the interest will be charged to me/us at monthly rests.

6. I/We acknowledge and confirm that notwithstanding anything contained in any document or
instrument or letter with effect from October 01, 2019, the rate of interest applicable to the loans/credit
facilities availed by me/us, unless expressly excluded otherwise by the Bank, shall be based on External
Benchmark Lending Rate (EBLR) comprising of RBI Repo Rate and Spread + Premium, payable at monthly
rests, and the Bank shall be entitled to reset the rate of Spread and Premium from time to time in terms
of RBI guidelines, as revised from time to time.

7. I/We understand and acknowledge that in terms of RBI guidelines, the EBLR fixed by the Bank is based
on the policy repo rate notified by RBI (which is subject to review/revision by RBI quarterly or at such
intervals as may be notified by RBI) plus Spread. However, the Bank shall be entitled, at its sole
discretion, to fix the EBLR based on any other criteria/rates as permitted by RBI from time to time.

8. I/We understand and acknowledge that the revised rate of interest applicable to the loan/credit
facilities availed by me/us will be calculated as sum of EBLR(comprising of RBI Repo Rate and Spread) +
Premium, as may be fixed by the bank from time to time. ‘Spread’ means the rate chargeable to the
Borrower by the bank to cover its costs and shall comprise of operating cost and capital charge and the
Bank shall be entitled to reset the rate of Spread, once in three years or at such short intervals as may
be permissible under RBI guidelines and the same shall be binding on me/us. ‘Premium’ means the rate
chargeable to the Borrower by the bank based on the yearly credit assessment/rating of the Borrower
and shall comprise of credit risk premium (including additional credit risk premium for long term loans
to MSEs) and strategic premium and the Bank shall be entitled to reset the rate of Premium yearly,
which shall be binding on me/us.

9. I/We understand and agree that the rate of interest applicable to any loan or credit facility
sanctioned/granted to me/us will be calculated as sum of EBLR+ Premium as may be fixed by the bank
from time to time and such interest shall be payable at monthly rests.

10. I/We unconditionally agree that the Bank has full absolute discretion to revise the EBLR linked rate
of interest as well as the rate of Premium from time to time in terms of RBI guidelines and Bank’s policy,
till the entire loan/credit facilities is/are repaid by me/us. This annual change/revision in the rate of
interest is called ‘Interest rate reset’.

11. I/We agree that upon such Interest rate reset by the bank, the rate of interest as reset will be
applicable to outstanding loans/credit facilities availed by me/us.

12. I/We agree that all references to Marginal Cost of Lending Rate (MCLR) or Base Rate or Union Bank
Prime Lending rate in Finance Documents shall be deemed to be reference to External Benchmark
Lending Rate (EBLR) + Premium.

13. I/We agree that interest amounts found due and payable by me/us in terms of statement of
accounts pertaining to the loans/credit facilities sanctioned/granted to me/us by application of EBLR+
Premium shall be conclusive and binding on me/us.

14. I/We hereby confirm having understood the sanctioned terms and conditions applicable to EBLR and
the risks involved in switchover to EBLR based rate of interest.
Schedule
A. Fund based limits
Sr. No. Nature of Limit (Rs.) Outstanding Existing Revised
credit limits as of Applicable Applicable
__________ Rate of Rate of
Interest Interest
(Base Rate/ (EBLR +
MCLR+Spread Premium)
1 2 3 4 5 6

B. Non-Fund Based Limits

Sl. No. Nature of Limit (Rs.) Outstanding Applicable Rate of Commission
credit limits as of
__________
Existing Revised
1 2 3 4 5 6
C. Documents/Agreement Executed for above limits

Sl. No. Nature of credit limits List of documents and date

Description Date of execution
1 2 3 4

D. Details of security interest created to secure the credit limits above

Sl. No. Nature of credit limits Description of Security Interest (Mortgage, Charge,
Pledge, Hypo, Lien, etc.)
1 2 3

Declaration:
I/We hereby declare that the details given under are true and correct and I/we solemnly affirm and
state that I/We am/are duly authorized to enter into this agreement.

BORROWER DETAILS
Name of the borrower
Business address/
Registered office
Name of the authorized
signatory
Number and date of Board
resolution in the case of
company/LLP
Partner details such as name
and address in the case of
partnership firm

SIGNED AND DELIVIERED BY THE

Borrower within namedfor ______________________________________
___________________________

___________________________(Name & Designation of Authorised Signatory)

Notes
•If the borrower is an individual then his name should be filled up and his signature should be obtained.
•If the borrower is a partnership firm, obtain signature of all partners.
•If the borrower is a company/LLP, obtain signature of Authorised Signatory pursuant to the board resolution
which authorizes signing of this document.