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The Loan Referral Agreement is essential for financial institutions in India looking to expand their loan distribution channels through third-party referral partners. This document is typically used when banks or NBFCs want to formalize relationships with partners who can refer potential borrowers, while ensuring compliance with Indian banking regulations and RBI guidelines. It covers crucial aspects such as referral processes, commission structures, compliance requirements, data protection, and risk management. The agreement is particularly important in the current digital banking landscape where traditional financial institutions increasingly partner with various intermediaries and digital platforms. It provides a framework that balances business objectives with regulatory compliance, while clearly defining roles, responsibilities, and liability allocation between parties.

1. Parties: Identification of the parties entering into the agreement - typically the financial institution and the referral partner

2. Background: Context of the agreement, including the lender's authority to provide loans and referrer's business

3. Definitions: Key terms used throughout the agreement including 'Referred Customer', 'Loans', 'Referral Services', etc.

4. Appointment and Scope: Terms of appointment of the referrer and scope of referral services

5. Referral Process: Detailed process for making referrals, including documentation requirements and timeframes

6. Obligations of the Referrer: Specific duties, responsibilities and compliance requirements for the referrer

7. Obligations of the Lender: Lender's commitments regarding processing referrals and providing necessary support

8. Commission Structure: Details of referral fees, calculation method, and payment terms

9. Compliance Requirements: Regulatory compliance obligations, including KYC, anti-money laundering, and banking regulations

10. Representations and Warranties: Standard and specific warranties from both parties

11. Confidentiality: Protection of confidential information and customer data

12. Term and Termination: Duration of agreement and termination rights

13. Indemnification: Mutual indemnification provisions for breaches and third-party claims

14. General Provisions: Standard boilerplate clauses including notices, amendments, governing law, etc.