Loan Settlement Agreement

LOAN SETTLEMENT AGREEMENT This Agreement is executed on [execution_date] between [lender_name] (hereinafter "the Lender") and [borrower_name] (hereinafter "the Borrower"). WHEREAS the Borrower owes the Lender Rs. [original_loan_amount] under an earlier loan, and the parties have agreed to settle the matter as set out below. 1. SETTLEMENT AMOUNT The Borrower agrees to pay the Lender a full and final settlement amount of Rs. [settlement_amount] on or before [settlement_date]. 2. FULL AND FINAL SETTLEMENT Upon receipt of the settlement amount, the Lender confirms that the Borrower shall stand fully discharged of all liability under the original loan, and the Lender shall have no further claim against the Borrower in respect of it. 3. DEFAULT Should the Borrower fail to pay the settlement amount by the due date, this settlement shall stand void and the Lender's original claim, including the full original amount, shall revive. IN WITNESS WHEREOF the parties have executed this Agreement on the date first written above. LENDER BORROWER [lender_name] [borrower_name]