¶¶Òõ¶ÌÊÓƵ

The Business Credit Agreement serves as the primary documentation for credit facilities extended to corporate entities in India. It is essential when businesses seek formal financing arrangements from banks or financial institutions, typically used for working capital, expansion, equipment purchase, or other business purposes. The agreement must comply with Indian banking regulations, including RBI guidelines and the Banking Regulation Act, while incorporating necessary security and enforcement mechanisms under Indian law. The document details credit terms, drawdown conditions, repayment schedules, security arrangements, and borrower covenants, providing a comprehensive framework for the lending relationship. It includes provisions for monitoring, reporting, and default scenarios, ensuring proper risk management and regulatory compliance throughout the credit facility period.

1. Parties: Identification of the lender (financial institution) and borrower (business entity), including their registered addresses and company registration details

2. Background: Context of the credit facility, including the purpose of the loan and any relevant business relationship history

3. Definitions: Comprehensive definitions of terms used throughout the agreement, including financial terms, security-related terms, and general interpretations

4. Facility Details: Specific details of the credit facility including amount, purpose, and type of facility (term loan, revolving credit, etc.)

5. Interest and Fees: Interest rate structure, calculation method, payment periods, and all applicable fees and charges

6. Drawdown: Conditions and procedures for drawing down the credit facility, including notice requirements and drawdown periods

7. Repayment Terms: Repayment schedule, payment methods, prepayment provisions, and consequences of late payment

8. Representations and Warranties: Standard declarations by the borrower regarding legal status, authority, and financial condition

9. Covenants: Positive and negative obligations of the borrower during the facility period

10. Events of Default: Circumstances constituting default and consequences thereof

11. Security: Overview of security arrangements and cross-reference to security documents

12. Governing Law and Jurisdiction: Specification of Indian law as governing law and jurisdiction of Indian courts

13. Notices: Communication procedures and contact details for all parties

14. Boilerplate Provisions: Standard clauses including severability, entire agreement, amendments, and counterparts