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What is an Intragroup Loan Agreement?
An Intragroup Loan Agreement is a loan agreement for a borrower and a lender that are both in the same group of companies.
To borrow money under an Intragroup Loan Agreement, the borrower has to pay a stipulated amount of interest to the lender and repay the loan on specified dates.
Given the intragroup relationship between the borrower and the lender, an Intragroup Loan Agreement does not contain extensive representations and warranties, nor any obligations or restrictions on the part of the borrower.
Is IOU legally binding in Singapore?
An IOU is a rather simple contract that stipulates the terms of the loan and it is legally binding in Singapore.
Key points included
- Principal amount;
- Interest rate;
- Availability period; and
- Dates for repayment.
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