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The Revolving Loan Agreement is essential for businesses and individuals seeking flexible financing solutions in India. It is commonly used when a borrower requires ongoing access to funds rather than a one-time loan disbursement. The agreement must comply with Indian banking regulations, particularly the Reserve Bank of India guidelines, Banking Regulation Act, and Indian Contract Act. It typically includes detailed provisions for multiple drawdowns and repayments, interest calculations based on Indian banking practices, security arrangements if applicable, and comprehensive covenants to protect the lender's interests. This document is particularly relevant for working capital financing, project financing with periodic funding needs, and general corporate purposes where funding requirements fluctuate over time.

1. Parties: Identifies and defines the lender and borrower with their complete legal names, addresses, and registration details

2. Background: Sets out the context of the agreement, including the borrower's request for the facility and the lender's willingness to provide it

3. Definitions: Defines key terms used throughout the agreement, including 'Facility Amount', 'Interest Rate', 'Availability Period', 'Repayment Date', etc.

4. The Facility: Details of the revolving loan facility, including the amount, purpose, and revolving nature of the facility

5. Drawdown: Conditions and procedures for drawing down the loan, including notice requirements and minimum drawdown amounts

6. Interest: Interest calculation method, payment dates, default interest provisions

7. Repayment: Terms of repayment, including scheduled payments and the revolving nature of the facility

8. Representations and Warranties: Standard representations made by the borrower about their legal status, power to enter agreement, etc.

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

10. Events of Default: Circumstances that constitute default and the lender's rights upon default

11. Fees and Expenses: All fees payable including arrangement fees, commitment fees, and legal expenses

12. Notices: Process for giving notices under the agreement

13. Assignment and Transfer: Rights of parties to assign or transfer their rights and obligations

14. Governing Law and Jurisdiction: Specification of Indian law as governing law and jurisdiction for disputes

15. Miscellaneous: Standard boilerplate provisions including severability, entire agreement, amendments, etc.