This is a sample commercial loan agreement for a corporate borrower. The agreement sets out the terms and conditions of the loan, including the definitions of key terms, the loan amount, the interest rate, and the repayment schedule. The agreement also includes provisions for events of default and remedies, as well as representations and warranties made by the borrower.

The borrower agrees to pay interest at the interest rate on the loan amount, and to repay the principal outstanding by the repayment date. The lender may charge interest on other amounts payable, and may capitalise interest that is not paid when due. The borrower is responsible for any taxes payable on the loan. The agreement may be executed in counterparts and governed by the law of the relevant jurisdiction. The agreement is designed to protect the lender's interests and ensure that the borrower repays the loan on time and in accordance with the agreed terms. The agreement is a legally binding document that should be carefully reviewed and understood by all parties before signing.

 

How to use this Document?

1. Understand the interpretation: Before delving into the content of the Commercial Loan Agreement, the reader must carefully read the interpretation section. This includes definitions of several technical terms used in the agreement.

2. Determine the parties involved: The agreement involves two parties: the Lender and the Borrower. The name of the Lender should be filled in the blank space in the document, and the name of the Borrower should be entered as well.

3. Check the Loan amount: The agreement mentions a specific loan amount in clause 2. The Borrower should confirm that the amount mentioned is correct and reflects the amount they have requested.

4. Understand the terms and conditions of the Loan: The document outlines the terms and conditions of the loan, including the Interest Rate, Interest Payment Date, and Repayment Date. The Borrower must read these sections carefully to understand their financial obligations.

5. Determine the Interest Rate: The Borrower should make sure that the Interest Rate specified in the agreement is reasonable and matches the terms discussed with the Lender.

6. Understand the Payment Schedule: The agreement lays out the Interest Payment Date and Repayment Date. The Borrower should make sure they understand when payments are due and how much they will need to pay.

7. Be aware of penalties: If an Event of Default occurs, the Borrower will face penalties. The Borrower should understand the nature of these penalties and try to avoid them.

8. Seek legal advice: Before signing the agreement, it is advisable to seek legal advice to ensure that the terms are fair and reasonable.

9. Keep a copy of the agreement: The Borrower should keep a copy of the signed agreement for future reference.

By following these steps, the Borrower can effectively use this Commercial Loan Agreement to secure a loan from the Lender.