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Addendum Loan Agreement Template for Malaysia

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Key Requirements PROMPT example:

Addendum Loan Agreement

"I need an Addendum Loan Agreement to modify our existing facility agreement with ABC Bank Berhad, increasing the loan amount from RM 2 million to RM 3.5 million and adjusting the interest rate from 4.5% to 5.2%, with these changes taking effect from March 1, 2025."

Document background
An Addendum Loan Agreement is a critical legal instrument used in the Malaysian banking and finance sector when parties need to modify an existing loan agreement without completely restating or replacing it. This document type is particularly relevant in Malaysia's dual banking system, where both conventional and Islamic banking principles must be considered. It's commonly used when circumstances require amendments to loan terms, such as extending the facility period, modifying interest rates, adjusting repayment schedules, or updating security arrangements. The addendum must comply with Malaysian banking regulations, including the Financial Services Act 2013 and, where applicable, the Islamic Financial Services Act 2013. It requires proper execution and stamping to be legally enforceable under Malaysian law.
Suggested Sections

1. Parties: Identification of all parties to the original loan agreement and any new parties being added

2. Background: Reference to the original loan agreement, its date, and purpose of this addendum

3. Definitions: Key terms used in the addendum and references to definitions in the original agreement

4. Amendment Details: Specific clauses being modified, added, or deleted from the original agreement

5. Effect of Amendments: Statement clarifying how these amendments affect the original agreement and confirmation that all other terms remain unchanged

6. Effective Date: When the amendments take effect

7. Confirmation of Original Agreement: Affirmation that the original agreement remains in force except as modified by this addendum

8. Governing Law: Confirmation of Malaysian law as governing law (even if already in original agreement)

9. Execution: Signature blocks for all parties

Optional Sections

1. Additional Security: Used when amendments require new or modified security arrangements

2. Change in Loan Amount: Required when the addendum modifies the principal loan amount

3. Interest Rate Modification: Include when changing interest rates or calculation methods

4. Repayment Schedule Changes: Used when modifying payment terms or schedules

5. Compliance with Shariah: Required for Islamic financing facilities to ensure amendments maintain Shariah compliance

6. Conditions Precedent: Include when new conditions must be met before amendments take effect

7. Fees and Charges: Used when modifying any fees or charges associated with the loan

Suggested Schedules

1. Schedule of Amendments: Detailed list of specific clauses being amended with old and new text

2. Revised Repayment Schedule: Updated payment schedule if payment terms are modified

3. Modified Security Documents: List and details of any security documents affected by the amendments

4. Conditions Precedent Checklist: List of conditions that must be fulfilled before amendments take effect

5. Fee Schedule: Updated schedule of fees and charges if modified by the addendum

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions






























Clauses























Relevant Industries

Banking & Financial Services

Real Estate & Property

Manufacturing

Commercial & Retail

Infrastructure & Construction

Technology & Communications

Healthcare

Education

Agriculture

Islamic Finance

Relevant Teams

Legal

Finance

Credit

Compliance

Risk Management

Corporate Banking

Islamic Banking

Treasury

Operations

Documentation

Company Secretarial

Relevant Roles

Legal Counsel

Finance Manager

Credit Officer

Relationship Manager

Compliance Officer

Risk Manager

Company Secretary

Chief Financial Officer

Banking Officer

Shariah Compliance Officer

Legal Manager

Corporate Banking Manager

Treasury Manager

Documentation Specialist

Credit Risk Analyst

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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