What is a Commercial Loan Agreement?
A 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.