Sample Loan Agreement

2.3 Loan Agreement

 THIS AGREEMENT is made this ____________ day of ________________ one Thousand Nine Hundred and Ninety Two BETWEEN Lotte Chemical Pakistan Limited, a Public Limited Company incorporated under the companies Ordinance, 1984, having its Registered office at EZ/1-P-4, Eastern Industrial Zone, Port Qasim, Karachi 74200 ( hereinafter called the “company” which term shall mean and include its successors and assigns) of the ONE PART AND ____________ son of _____________ presently residing at __________________  hereinafter called the “Employee” which term shall mean and include his legal heirs, representatives and assigns) of the OTHER PART.

WHEREAS the Employee is employed by the company and the company on terms and conditions agreed by the Employee, has advanced a sum of Rs __________ (Rupees _____________ only ) to the Employee by the way of loan, exclusively for the purpose of building / purchasing a House /Flat, receipt whereof is separately acknowledged by the Employee.

NOW THIS AGREEMENT WITNESSETH THAT:

In consideration of the sum of Rs __________ paid by the company to the Employee as aforesaid, the Employee hereby agrees to repay to the company the said loan by way of monthly deductions from his salary in the following manner and in accordance with terms and conditions stated herein below

1. The Employee undertakes to build /purchase a House /Flat within __________ months of having received the above loan and in this respect to furnish such documentary proof as may be required by the company,   failing which the whole of the loan shall be repaid by the Employee to the company.
2. The Employee also undertakes to repay the said loan to the Company, falling which the whole of the loan shall be repaid by the Employee to the Company.
3. It is clearly understood and agreed by the Employee that in the event of the service of the Employee being terminated due to any reasons whatsoever or voluntary resignation by the Employee before the above loan is               fully repaid, the company shall at its sole discretion be entitled to recover the balance of the loan which may be                recoverable or outstanding at that time,  from the Provident Fund, Gratuity, Pension or any other dues   payable                 to the Employee.
4. The Employee acknowledges that for effecting recovery, as aforesaid, this Agreement shall serve as adequate and irrevocable authority to the company, and no separate or Pension Fund will be necessary.
5. The Employee further acknowledges having signed and delivered to the company, a Promissory Note in the sum of Rs__________ for due repayment of the said loan.

IN WITNESSES WHEREOF THE PARTIES HERETO HAVE SIGNED THIS AGREEMENT ON THE DAY, MONTH AND YEAR ABOVE MENTIONED

Signed for and on behalf of

Lotte Chemical Pakistan Limited

by _____________                                                                                                            ______________________

in the presence of:                                                                                                                                  COMPANY

___________________

Signed by __________________                                                                                 ______________________                                                                                                                                                                                                          EMPLOYEE

in the presence of:

__________________