Disclosures in loan agreement / loan passbook for loans
Light shall at all times have a standard format of loan
agreement approved by the board or by the committee comprising
of the Board Members. The Loan agreement shall preferably be in
Following points are disclosed in loan agreement:
All the terms and conditions of the loan.
Pricing components of the loan, they being the interest charge,
the processing charge and the insurance premium (not inclusive
of administrative charges, as per IRDA guidelines)
That no penalty is charged on delayed payment.
That no Security Deposit / Margin is collected from the
That the client cannot be a member of more than one SHG/JLG.
That the moratorium between the grant of the loan and the due
date of the repayment of the first installment.
Assurance that the privacy of client data is respected.
Light also discloses the following details in the loan
The effective rate of interest charged.
All other terms and conditions attached to the loan.
Information which will identify the borrower.
Acknowledgements for all repayments including installments
received and the final discharge.
The grievance redressal system, including the name and contact
number of the nodal officer
Non-credit products issued is with full consent of the
All entries in the Loan card will be in vernacular language.