Banking & Finance | Securing Your Interests
Lending money is easy; getting it back is the hard part. The Banking & Finance practice at Satyarth Legal represents the full spectrum of the credit ecosystem. We act for major public and private sector banks, Non-Banking Financial Companies (NBFCs), and large corporate borrowers.
We understand that modern finance is not just about a simple Term Loan. It involves complex structures like Consortium Lending, where multiple banks join forces, or Project Finance, where the loan is repaid solely from the cash flow of a specific project (like a toll road or power plant).
Who Is This For?
Lenders: Banks needing standard or bespoke loan documentation.
Infrastructure Developers: Seeking long-term project finance.
Real Estate Companies: Raising construction finance or LRD (Lease Rental Discounting).
Fintech Startups: navigating digital lending guidelines.
Scope of Services
1. Transaction Documentation We draft and negotiate the “Finance Documents”:
Facility Agreement: The main loan contract.
Security Documents: Deeds of Hypothecation, Mortgage Deeds, Corporate Guarantees, and Share Pledges.
Inter-Creditor Agreements: Defining the hierarchy between multiple banks in a consortium.
2. Project Finance This is a specialized field. We review the underlying project contracts (EPC Contracts, Concession Agreements) to ensure the project is “bankable”—meaning the risks are low enough for a bank to lend against it.
3. Debt Restructuring When a borrower faces a cash crunch, we help restructure the debt. We advise on RBI’s Prudential Framework for Stressed Assets, helping both sides agree on a new repayment schedule to avoid NPA (Non-Performing Asset) classification.
4. Fintech Advisory We advise digital lending platforms on compliance with RBI’s Digital Lending Guidelines (DLG), ensuring that their partnership models with banks (LSP model) are legal.
Common Risks
Stamp Duty: India has different stamp duty rates in every state. Under-stamping a document makes it inadmissible in court. We calculate this precisely to ensure your documents are enforceable.
Evergreening: Using new loans to pay off old ones is strictly monitored by the RBI. We ensure restructuring plans are genuine and compliant.
Why Satyarth Legal?
We know the banker’s mindset. Many of our team members have worked on secondment with banks. We understand the pressure of “Sanction Terms.” We work fast to convert a Sanction Letter into signed agreements so that disbursement can happen before the quarter ends.