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Business Loan Contract Generator for Singapore

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Key Requirements PROMPT example:

Business Loan Contract

"I need a Business Loan Contract for a manufacturing company borrowing SGD 2 million from a local Singapore bank, with quarterly repayments over 3 years starting from March 2025, secured against company equipment and requiring personal guarantees from two directors."

Document background
A Business Loan Contract is essential for commercial lending transactions in Singapore, providing a comprehensive framework for business financing arrangements. This document is commonly used when businesses require capital for expansion, working capital, or asset acquisition. The contract must comply with Singapore's stringent financial regulations and typically includes detailed provisions on loan amount, interest calculations, repayment schedules, security arrangements, and default remedies. It's particularly important in Singapore's business environment where commercial lending is heavily regulated by the Monetary Authority of Singapore (MAS) and must adhere to specific banking and financial services legislation.
Suggested Sections

1. Parties: Identification of lender and borrower with full legal names and addresses

2. Background: Context of the loan and purpose

3. Definitions: Key terms used throughout the agreement

4. Loan Amount and Purpose: Specific amount being borrowed and its intended use

5. Interest Rate: Interest rate, calculation method, and payment terms

6. Repayment Terms: Schedule of repayments, including principal and interest

7. Security: Details of any collateral or guarantees

8. Events of Default: Circumstances constituting default and consequences

9. Representations and Warranties: Borrower's declarations regarding their business and capacity

Optional Sections

1. Conditions Precedent: Pre-conditions for loan disbursement - used for complex loans or when specific conditions must be met before disbursement

2. Covenants: Ongoing obligations of the borrower - used for larger loans or when specific business performance metrics need to be maintained

3. Insurance Requirements: Required insurance coverage - used when specific insurance is required to protect the loan

4. Change of Control: Provisions regarding change in borrower's ownership - used for loans to companies where ownership stability is important

Suggested Schedules

1. Repayment Schedule: Detailed breakdown of repayment dates and amounts

2. Security Documents: List and copies of security documents

3. Conditions Precedent Documents: List of required documents and conditions

4. Form of Drawdown Notice: Template for requesting loan disbursement

5. Financial Covenants Schedule: Detailed financial metrics and reporting requirements

Authors

Alex Denne

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

Relevant legal definitions








































Clauses

































Industries

Banking Act (Cap. 19): Primary legislation that regulates banking business and financial institutions in Singapore, including provisions on lending practices and restrictions

Moneylenders Act (Cap. 188): Regulates moneylending businesses in Singapore, particularly relevant if the lender is not a licensed bank

Securities and Futures Act (Cap. 289): Governs securities and financial instruments, relevant when the loan involves securities as collateral

Companies Act (Cap. 50): Regulates corporate matters including corporate borrowing powers and directors' authority to enter into loan agreements

Contract Law (Application of Laws) Act: Fundamental legislation governing the formation and enforcement of contracts in Singapore

Civil Law Act (Cap. 43): Contains provisions on interest rates and rules against penalties in contractual arrangements

Bankruptcy Act (Cap. 20): Governs bankruptcy proceedings and creditor rights in default scenarios

Insolvency, Restructuring and Dissolution Act 2018: Modern legislation governing corporate insolvency, restructuring, and dissolution procedures

Personal Data Protection Act 2012: Regulates the collection, use, and disclosure of personal data in Singapore, relevant for handling borrower's information

MAS Guidelines: Regulatory guidelines issued by the Monetary Authority of Singapore covering banking regulations and fair lending practices

ABS Guidelines: Industry standards and best practices for business loans issued by the Association of Banks in Singapore

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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