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The Loan Broker Commission Agreement is essential for financial institutions operating in India that engage external brokers to source and facilitate loan arrangements. This document becomes necessary when a lending institution wishes to formalize its relationship with loan brokers, ensuring compliance with Indian banking regulations while protecting both parties' interests. It typically includes detailed commission structures, compliance requirements under RBI guidelines, broker obligations, service standards, and risk management provisions. The agreement is particularly relevant in the current Indian financial landscape where intermediaries play a crucial role in loan origination and requires careful consideration of various regulatory requirements including KYC norms, anti-money laundering provisions, and consumer protection guidelines.

1. Parties: Identification of the lending institution and the broker, including full legal names, registration numbers, and addresses

2. Background: Context of the agreement, including the broker's role in facilitating loans and the lender's desire to engage their services

3. Definitions: Key terms used throughout the agreement, including 'Successful Referral', 'Commission', 'Loan Products', 'Borrower', etc.

4. Appointment and Scope: Formal appointment of broker, territory designation, and scope of authorized activities

5. Broker's Obligations: Detailed responsibilities including client screening, documentation collection, regulatory compliance, and service standards

6. Lender's Obligations: Responsibilities of the lender including processing applications, providing product information, and training support

7. Commission Structure: Detailed explanation of commission calculations, payment terms, and conditions for commission eligibility

8. Compliance Requirements: Regulatory compliance obligations, including KYC requirements, anti-money laundering provisions, and disclosure requirements

9. Representations and Warranties: Standard representations from both parties regarding authority, licensing, and compliance

10. Confidentiality: Protection of confidential information and client data

11. Term and Termination: Duration of agreement and circumstances under which it can be terminated

12. Post-Termination Obligations: Obligations that survive termination, including commission payments for pipeline cases

13. Dispute Resolution: Process for resolving disputes, including jurisdiction and governing law

14. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment restrictions