Definition
A loan agreement provision that makes the entire outstanding loan balance immediately due and payable upon the occurrence of a specified event — typically default. Upon acceleration, the creditor does not need to wait for the scheduled repayment dates and can immediately initiate recovery proceedings under SARFAESI or RDDB Act.
Example
If a borrower defaults on 3 consecutive EMIs, the bank may invoke the acceleration clause, making the entire ₹10 crore loan immediately recoverable.
Need Expert Advice on Acceleration Clause?
For specific advice on how Acceleration Clause applies to your debt recovery matter, consult Advocate Subodh Bajpai — LLM, MBA (XLRI Jamshedpur). 25+ years of exclusive banking and debt recovery practice across DRT, SARFAESI, IBC, and NI Act.
Defined by Advocate Subodh Bajpai, Senior Partner, Unified Chambers and Associates