Last Updated: August 12, 2025
Lender (Party A)
Name: Prescot Traders Pvt. Ltd.
Description: Party A provides loan services to the borrower through the LoanSahay platform, responsible for the disbursement, management, and collection of funds.
Borrower (Party B)
Identity: Indian residents or legal entities who apply for loans through the LoanSahay application and are at least 18 years old.
Description: Party B applies for a loan through the LoanSahay platform, committing to repay the loan principal, interest, and other fees as agreed.
Loan Platform
Name: LoanSahay
Operator: Prescot Traders Pvt. Ltd. independently developed and operated personal loan application .
Platform Function: Provide information matching, loan application processing, loan disbursement, and repayment management services to ensure the smooth completion of loan and repayment processes.
Basic parameters
The loan amount applied by Party B can range from ₹ 1000 to ₹ 120000, and the specific amount will be determined by Party B at the time of application.
The loan term is 91 to 180 days.
The maximum annual interest rate (APR) is between 18% and 34%, and the exact interest rate is determined by Party A based on Party B's reputation and loan history.
The service fee ranges from 0% to 2% of the loan amount, depending on the credit status of Party B.
The repayment date is the last day of the loan term, and Party B must repay on time before the due date. If the repayment is overdue, there will be overdue management fees.Loan Fee Details
Interest is calculated based on the loan amount, annual interest rate, and the actual number of days. The interest calculation formula is:
Interest=Principal×Annual Interest Rate×365Actual Days
Service fees are calculated based on a certain percentage of the loan amount.
The total repayment amount is the sum of the loan principal, loan interest, and service fee.
Assuming Party B applies for a loan amount of ₹20,000, with a loan term of 180 days, an annual interest rate of 24%, and a service fee of 1%, then:
Interest = 20000×24%/365×180=₹2367
Service Fee = 20000×1%=₹200
Amount Disbursed to User = 20000−200=₹19800
Total Repayment Amount = 20000+2367=₹22,367
Party B must repay this total amount when the loan term expires.
Loan Information Confirmation
Party B must confirm the specific loan amount, term, interest rate, service fee, and total repayment amount through the LoanSahay application when applying for the loan.
Party B should carefully verify and confirm that this information is accurate before submitting the loan application.
Party B must submit a loan application on the platform and provide true and accurate personal information.
After receiving the application, Party A will review Party B's credit situation, income, and other information to decide whether to approve the loan and the loan amount.
Loan Disbursement Conditions
Party B must meet the following conditions:
Complete biometric verification (Aadhaar e-KYC)
Have sufficient repayment ability
Pass Party A's review
Repayment Methods
The second party can manually repay through UPI or NetBanking.
It supports choosing early repayment without penalty fees.If Party B fails to repay on time, an overdue management fee will be charged daily, at a rate of 0.5% per day. The fee is calculated based on the number of overdue days.
If the overdue period exceeds 30 days, Party A will take legal action to recover the debt, and Party B will be responsible for all costs incurred as a result.
Breach of Contract Scenarios
Party B's breach of contract includes, but is not limited to:
Overdue repayment for more than 30 days
Providing false income proof
Inability to repay the loan or other breach of contract actions
Legal Liabilities
If Party B violates the terms of this agreement, Party A has the right to terminate the loan contract and take legal action to recover the debt.
Privacy Protection
Party A undertakes to protect Party B's personal information security. All personal information will only be used for the loan services under this agreement and in strict compliance with the platform's privacy policy.
Governing Law
This agreement is governed by the relevant laws of India, particularly the Indian Contract Act (1872) and the RBI Digital Lending Guidelines (2022), among other applicable regulations.
Dispute Resolution
In case of a dispute, the dispute should be submitted to the court in Party A's jurisdiction for resolution, and Indian laws will apply.
Effectiveness of the Agreement
This agreement will take effect from the moment Party B clicks "Agree" and completes the loan application on the platform.
Party A may modify this agreement based on market changes, user needs, or legal regulations, and the modified agreement will be notified to Party B via platform announcement.
"I confirm that I have fully read and understood all the terms, understand the total cost of the loan and the consequences of default, and promise that the information provided is true and valid."