Legal Documents

Need to draft a Commercial Loan Agreement?


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What is a Commercial Loan Agreement?

Commercial Loan Agreement is a loan agreement on commercial terms.

To borrow money under a Commercial Loan Agreement, the borrower has to pay a stipulated amount of interest to the lender and repay the loan on specified dates.

A loan created under a Commercial Loan Agreement can be secured or unsecured, but in the case of a secured document, additional security documents are required.

Key points included

  • Whether this is a secured or unsecured loan;
  • Principal amount;
  • Interest rate;
  • Availability period;
  • Any conditions precedent to be fulfilled before the loan can be drawn down; and
  • Dates for repayment.

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