Consumer Durable Loan Terms and Conditions

MOST IMPORTANT TERMS & CONDITIONS (MITC) APPLICABLE TO FEDERAL BANK CONSUMER DURABLE LOANS FOR PURCHASE OF CONSUMER DURABLE PRODUCT/S.

 

  • I (“Borrower’’) hereby declare and confirm that I am above 18 years of age and is competent to contract. I have read and understood the terms and conditions contained below (“Terms and Conditions”) for availing Consumer Durable Loan from the Federal Bank Ltd and I accept and agree the same. 
  • At my request and based on the information/ details provided by me , the Federal Bank Ltd., a banking company within the meaning of Companies Act,2013 and having its registered office at Federal Towers, Aluva, Ernakulam (‘Bank/Lender’)  has granted/ agreed to grant a Consumer Durable Loan (“Loan/ Facility”) to me subject to the following terms and conditions:
  • I understand that the principal amount of the Loan /Facility and the details of loan are specified in the e-mail issued to me by the Bank.
  • The Bank has granted/ agreed to grant the Loan solely for the purchase of consumer durable product(s). I hereby declare that I shall not utilise the proceeds of the Loan for any purpose which is in violation of applicable laws.
  • I understand and acknowledge that the Lender shall have the absolute discretion, without assigning any reason to reject my loan application at any stage and that the Lender shall not be responsible/liable in any manner whatsoever for such rejection.
  • I understand and confirm that the Lender will sanction the loan/facility at their sole discretion. The Lender reserves the right to decide my eligibility for the Loan as per their internal policies and guidelines.
  • I hereby expressly consent and authorise the Lender/ its representatives/ agents/representatives/partners/Business Correspondents/ its business partners/ its group companies/ affiliates to initiate CIBIL, PAN, employment and other requisite checks to evaluate and process my loan application.
  • I hereby declare that availing of the Loan by me shall be deemed to be my unconditional acceptance of the terms and conditions of the Consumer Durable Loan as contained herein and other documents (if any) and I shall be bound by the same.
  • I understand and acknowledge that the Loan/Facility shall be disbursed by the Bank directly to the Merchant from whom I will purchase the consumer durables upon completion of the required formalities. I further acknowledge that the Loan disbursed by the Bank directly to the Merchant shall be deemed to be disbursement of the Loan to me by the Bank.
  • I understand that the Loan is of a non-revolving nature and once used will not once again become available on repayment of the Loan or any part thereof.
  • I further confirm and acknowledge that the Loan once processed and disbursed cannot be cancelled. The amount of loan, Interest Rate, Processing Fees, EMIs, repayment terms and Tenure applicable to the Loan will not be changed.
  • I hereby expressly agree and undertake to repay the loan amount along with applicable interest in such number of equated monthly instalments ("EMIs")  with such amounts and on the due dates within the loan period as specified in the e-mail. The payment of EMI shall not be dependent or conditional upon any dispute between me and the Merchant or any other event, and I shall make payment of the EMIs on due dates as per the repayment terms specified in the e-mail regardless and despite any such dispute or event. All the applicable interest, penal interest, additional interest, costs, expenses and charges shall be repaid by me without any demur or delay.
  • I understand and acknowledge that the EMIs shall automatically change by reason of change in any rates, taxes, charges, imposts, levies and monies whatsoever that are or may be levied on the EMIs or the transaction contemplated hereunder. Such a change in the EMIs due to change in the rates, taxes, charges, imposts, levies and monies as stated above shall automatically form part of the Loan and I shall repay the loan amount as per the revised terms.
  • I undertake and confirm that I shall provide e-NACH mandates through Net Banking or Debit Card authentication in favour of the Lender for facilitating the payment of the EMIs in respect of the Loan on the relevant due dates of repayment without demur. I shall maintain sufficient balance in my operative account/s in respect of which e-NACH mandates have been provided for the payment of the EMIs of the loan/facility on the due dates.
  • I understand and acknowledge that any dispute being raised about the computation of the Instalments will not entitle me to withhold payment of any Instalments or any portion thereof and that my obligation to pay the Instalments is absolute and unconditional.
  • I understand and acknowledge that the interest will be applied on the daily balance outstanding in the loan account from the date of disbursal of the loan or part thereof.  The principal amount under the loan shall always include the interest debited to the loan account at monthly rests cumulatively.
  • I undertake to pay Prepayment penalty at applicable rates if the loan is closed before its maturity. 
  • I agree and undertake that in the event of my default in repaying the Loan together with applicable interest, charges, taxes and costs and/or in adhering to the terms   of the loan or the terms and conditions contained herein, I shall be liable to pay additional/penal interest at applicable rates and the entire amounts outstanding in the Loan account shall be payable forthwith on demand. 
  • I acknowledge and understand that any Electronic payment Mandate without realization shall attract charges and I shall pay the Lender return charges at applicable rates in case of return of any electronic payment mandate including e-NACH Mandates. I shall also pay charges for further presentation of NACH mandates.
  • I confirm and declare that I shall not at any time cancel/stop the e-NACH mandate/s or  close the bank accounts  in respect of which e-NACH mandates have been drawn/issued and/or issue any communication to the Lender for stopping or postponing the presentation of the said Electronic Mandates and any such communication if sent shall be regarded as a dishonour and constitute default of the terms of this MITC. In any event the e-NACH mandate is stopped , revoked or cancelled by me without the  prior  written consent of the Bank, Bank shall be entitled to recall the loan/facility forthwith and I shall be liable to pay the entire outstanding in the loan account along with applicable interest, charges, expenses and costs.
  • I further confirm that the Loan shall be made available by the Lender on the basis of the e-NACH mandates issued by me in favour of the Lender towards repayment of EMI payable by me towards the repayment of the Loan. I shall not change the name or change the account on which the e-NACH mandates have been drawn without the prior written consent of the Lender.
  • All the details pertaining to the  loan/facility  including the amount of the Loan, interest rate, period of loan, benchmark, interest rests,  due dates of payment, NACH Mandate return charges, NACH Mandate re-presentation charges, Penal/ Additional interest, prepayment penalty, number and amount of each Instalment, etc.  communicated by the Bank through e-mail shall be deemed to have agreed , accepted and  consented to by me and shall be binding upon me.  
  • I accept and acknowledge that the Statement of Accounts provided by the Bank shall be conclusive proof of correctness of the accounts.
  • I understand and acknowledge that the Lender shall have the right to vary the Interest Rate of the Loan/facility from time to time, at its sole discretion or as per the Reserve Bank of India directives. In the event that the Interest Rate is varied as aforesaid, I shall be liable to pay the EMIs as re- calculated by the Bank to adjust for the change in the Interest Rate.
  • I further acknowledge that the Lender may in its sole and absolute discretion and without assigning any reason recall  the loan and/or make a demand at any time to forthwith repay all or part of the amounts outstanding under the Loan and I shall be bound to make payment of such amounts demanded forthwith.
  • I accept and confirm that I shall not cancel the transaction of purchase of the consumer durable product/s or return the product.  I shall be bound to repay the Loan /Facility as per the terms of the Loan/Facility even if I opt to return the consumer durable product or cancel the transaction.
  • I hereby expressly authorise the Lender to debit any and all of the accounts maintained by me with the Bank (including without limitation fixed deposit accounts) and appropriate the same towards any amounts which are or may become due from me  to the Bank under the said  Loan/Facility.
  • I declare that in case any refund is sought by me for the consumer durable Product/s from the Merchant or its Agent or the manufacturer, I shall forthwith remit the amount mandatorily and fully towards repayment of the Loan.
  • I agree and understand that the approved loan   will be valid only for a period of one month from the date of sanction.
  • I understand that the Lender does not hold any warranty or make any representation with respect to the availability, delivery, quality, merchantability, suitability or service of the consumer durable product/s and the Lender shall not be liable for the same in any manner whatsoever. 
  • I acknowledge and understand that the lender is entitled to disclose, without notice to me information furnished by me in relation to the loan/facility to CIBIL/RBI/ Credit Bureaus/Statutory, Regulatory or Rating Agencies and/or the Lender’s subsidiaries/affiliates/, Business Correspondents, Service Providers, Banks/Financial institutions, governmental authorities or third parties for information verification, credit risk analysis, or for any other purposes that the Lender may deem fit and proper in the  interest of the Lender.
  • I understand that if the price of the Consumer Durable Product is revised upwards after the date hereof and prior to delivery of Product, the Lender shall not be liable to pay any amount by way of loan or otherwise for such revision in price of the Product. 
  • I acknowledge that any dispute, difference and/ or claims arising out of in connection with or in relation to the loan and/or  this MITC, shall be settled by arbitration in accordance with the provisions of the Arbitration and Conciliation Act, 1996 and any subsequent statutory amendment, if any, to the Act, by a sole arbitrator to be appointed by the Lender. Any arbitration award/ direction passed shall be final and binding on me and the Lender. The language of the Arbitration shall be English and the venue of such arbitration shall be Kochi, Kerala. The Courts in Kochi, Kerala shall have exclusive jurisdiction in the subject matter.
  • The Bank reserves the right at any time, without previous notice, to add, alter, modify, change or vary all or any of these terms and conditions.
  • I hereby expressly declare that the Lender at any time and without notice to me shall  have the right to exercise lien and set off on all monies belonging to me and/or standing to my credit in any accounts/custody of the bank in respect of any amount/s payable by me under the loan/facility.
  • I hereby expressly declare and undertake that I shall at my own expense/costs execute agreements, deeds, Promissory Notes and such other documents as the Bank may require from time to time in connection with the loan /facility. I hereby agrees that in case the Lender is required to make any payments such as stamp duty, stamp duty penalty, registration charges and/or any other charges and/or duties on and in relation to any document/s associated with the Loan, then I  shall reimburse the same to the Lender and the Lender shall be entitled/authorised to recover the same from me.
  • I  hereby agrees to hold good the Bank from time to time and at all times hereafter from and against any and all claims, damages, costs, losses, expenses, suits, proceedings, actions, liabilities etc. that the Bank may have to suffer or incur by reason of extending the loan/facility to me and/or due to any act /omission /default on my part in repayment of the loan or in connection with the recovery of the outstanding amounts in the loan account (including legal/attorney fee).
  • I understand , accept and acknowledge that if I  does not repay, on any due date, any amount payable by me under the loan and/or if any representations made by me or any details given by me are found to be untrue, misleading or incorrect, or if I am  unable to meet any of my obligations when due to the Bank or any breach of the terms and conditions of the loan including these ‘Terms & Conditions’ occur, all amounts due in respect of the Loan shall forthwith become due and payable to the Lender and the Lender shall be entitled to exercise all of its rights powers and remedies available under law against me to recover the loan.
  • I hereby expressly declare and acknowledge that I have received a verification code sent by the Bank along with the link to this MITC as SMS in my mobile number and  I have read and understood the contents of this MITC.  I hereby confirm and accept that by ticking/clicking/checking the "I agree" or "I agree and accept" or any similar icon/tab/option by  me on the online system/Website/portal/platform  of Federal Bank as well as by entering the verification code provided to my mobile number, it is deemed that I have  read, verified, understood, agreed ,  consented to ,accepted and delivered all the terms and conditions  of the loan, as contained in this MITC and the terms and conditions of the loan specified in the e-mail and that there is no requirement for obtaining my signature /physical signature in any documents.
  • I hereby expressly confirm, acknowledge and agree that the online acceptance of this Terms & Conditions on the internet/world wide web/ Website/portal/platform/POS results in a binding contract between me and the Lender regarding the Loan/Facility. 
  • I shall ensure that the Communications which are provided through Electronic Media to the Lender are provided by me and I hereby agrees and confirm that the Lender shall not be responsible for conducting any further verification whatsoever in this regard.
  • I agree and declare that the Bank shall have an unqualified right to assign the Loan to any other Bank/Financial Institution/NBFC of Bank`s choice, for which purpose no further consent or concurrence shall be required from my part.