SUPPLEMENTARY LOAN AGREEMENT

This Supplementary Loan Agreement (hereinafter referred to as this “Agreement”) is made at the place and on
the day, month and year as specified in the Schedule between such persons, whose name(s) and address(es) are
as specified in the Schedule(hereinafter called the “Borrower(s)”) if ONE PART and IDFC FIRST BANK
LIMITED, a company registered under the Companies Act, 2013 and a banking company within the meaning of
the Banking Regulations Act, 1949 and having its registered office at KRM Tower, 7th Floor, No. 1 Harrington
Road, Chetpet, Chennai 600031 and one of the branch offices at the place as specified in the Schedule(
hereinafter called “the Bank”) of the SECOND PART

The expressions “Borrower(s)” and the ‘the Bank”, unless repugnant to the context or meaning thereof, shall
include their respective legal heirs, representatives, successors, executors, administrators and permitted assigns).

WHEREAS:

A. The Borrower and the Bank have entered into a Home/Mortgage Loan Agreement, details of which are
specified in the schedule whereby the Borrower is a / are beneficiary(ies) of a Home/Mortgage Loan of
an amount more particularly set out in the Schedule to the Home/Mortgage Loan Agreement;
B. The Bank has received instructions from RBI vide Notification bearing No. RBI/2019-20/53;
DBR.DIR.BC.No.14/13.03.00/2019-20 dated 4th September 2019, that all new floating rate personal or
retail loans and floating rate loans to Micro and Small Enterprises extended by banks from April 1,
2019 shall be linked to external benchmarks. Hence it has now been decided to link all new floating
rate personal or retail loans (housing, auto, etc.) and floating rate loans to Micro and Small Enterprises
extended by banks with effect from October 01, 2019 to external benchmarks.
C. Pursuant to the said notification the Bank has also decided to introduce/define certain new
terminologies and vary certain terms and conditions regarding interest reset, EMIs, event of default
etc.,.
D. To give effect to this understanding, the parties have felt the need to enter into this Agreement.

The following terms and conditions stated in the Home/Mortgage Loan Agreement shall stand
revised as under:

A. MCLR – The term MCLR shall be substituted with External Benchmark Based Lending Rate, which
shall mean such benchmark as may be prescribed by RBI and decided/announced /notified by the
Bank.
B. REPO Rate – The term REPO rate shall mean the applicable rate fixed by RBI.
C. “External Benchmark Reset Date” - shall mean reset of interest rate occurring three months from the
date of first EMI and every three months thereafter.
D. The Borrower shall be liable to pay to the Bank the interest including such cost and charges as may be
applicable, and communication regarding the same is shared either by SMS/Email communication on
the registered e mail address.
E. EMI amount is intended to be kept constant irrespective of variation in ROI by changing the tenor of
the Mortgage Loan. However, the Bank is entitled to increase the EMI at its sole discretion. The tenor
of the Mortgage Loan shall also change as per change in EMIs.
F. The Bank shall also be entitled (but not obligated) to reset the Spread on account of borrowers credit
assessment undergoes a substantial change. The Bank reserves its right to revise and /or charge higher
rate of interest or withdraw any benefit available to the borrower in event of default and/or the account
of the borrower has been substantially irregular, reasonably raising an apprehension of anticipated
breach.
Event of Default Credit Spread Mark-up
30+ DPD to 90 DPD 0.25%
90+DPD 0.50%
Furthermore the bank shall at its sole discretion reduce the ROI of borrowers loan account, if the
borrower regularizes his loan account and does not default for the continuous period for six months.
The bank shall monitor such accounts and benefit of reduced ROI shall be passed on to such accounts.
G. The amendment to the Home/Mortgage Loan Agreement in terms of this Agreement shall be effective
from the date set out in the schedule hereto. This Agreement shall also form an integral of the
Home/Mortgage Loan Agreement. The Borrower will sign such other documents/papers relating to the
Revised Loan, as may be deemed necessary by the Bank and as the Bank may, in its sole discretion,
require to be executed by the Borrower from time to time.

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 H. Save and except for the above, all other terms contained in the Home/Mortgage Loan Agreement will
remain valid and in full force and shall continue to be binding upon the Borrower.
I. Capitalized terms used in this Agreement unless otherwise defined herein shall have the meanings
assigned to them in the Home/Mortgage Loan Agreement.

SCHEDULE
Details of the Supplementary Agreement : Place:
Date:
Name of the Borrower(s)/ Co Borrower :
Address of the Borrower(s)/ Co Borrower
Date of Home/Mortgage Loan Agreement
and Reference No. (LAN )
Amount of the Home/Mortgage Loan under .
the Mortgage Loan Agreement
Address of the Branch

SIGNED AND DELIVERED )

by the within named Borrower )
Mr./Ms. )
SIGNED SEALED AND DELIVERED )
by the withinnamed )
IDFC FIRST Bank Limited through its )
authorised signatory )
Mr./Ms. )
(Authorised Signatory for the Bank )

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