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The Debt Consolidation Agreement serves as a crucial financial instrument in the Indian legal framework, designed to help borrowers manage multiple debts more effectively by combining them into a single loan with potentially more favorable terms. This document is particularly relevant when a borrower has multiple outstanding loans or credit lines and seeks to streamline their debt obligations under a single agreement. It is commonly used in both personal and corporate finance scenarios, requiring compliance with Indian banking regulations, RBI guidelines, and financial laws. The agreement typically includes detailed information about existing debts, new consolidated terms, security arrangements, repayment schedules, and default provisions. It's essential for debt restructuring processes and must be carefully drafted to protect both lender and borrower interests while ensuring enforceability under Indian law.

1. Parties: Identifies the consolidating lender and the borrower with complete details including registration/identification numbers

2. Background: Describes the existing debts to be consolidated and the purpose of the agreement

3. Definitions: Defines key terms used throughout the agreement including but not limited to Consolidated Debt, Existing Debts, Interest Rate, and Security

4. Consolidation of Debts: Details of all existing debts being consolidated, including original creditors, outstanding amounts, and terms

5. New Loan Terms: Specifies the consolidated loan amount, interest rate, tenure, and other key terms

6. Repayment Terms: Details of repayment schedule, payment methods, and prepayment provisions

7. Borrower's Representations and Warranties: Standard representations regarding legal capacity, accuracy of information, and existing obligations

8. Borrower's Covenants: Ongoing obligations of the borrower including financial covenants and information requirements

9. Events of Default: Lists circumstances constituting default and consequences thereof

10. Remedies: Lender's rights and remedies in case of default

11. Governing Law and Jurisdiction: Specifies Indian law as governing law and relevant jurisdiction for disputes

12. Notices: Communication procedures between parties

13. Miscellaneous: Standard boilerplate provisions including amendments, waivers, and severability