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Revolving Line Of Credit Loan Agreement for Singapore

Revolving Line Of Credit Loan Agreement Template for Singapore

A Singapore law-governed agreement establishing a revolving credit facility between a lender and borrower. The agreement details the terms under which the borrower can repeatedly draw down, repay, and re-borrow funds up to an agreed credit limit. It includes provisions compliant with Singapore banking regulations, MAS guidelines, and local lending practices, covering interest calculations, security requirements, and borrower obligations.

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Revolving Line Of Credit Loan Agreement

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What is a Revolving Line Of Credit Loan Agreement?

The Revolving Line Of Credit Loan Agreement is a fundamental financing instrument in Singapore's commercial lending landscape. It provides businesses and individuals with flexible access to funds, allowing them to draw down, repay, and re-borrow within a prescribed limit. This agreement is particularly suited for managing working capital, seasonal cash flow variations, or ongoing operational needs. The document must comply with Singapore's Banking Act, MAS regulations, and relevant financial services legislation, incorporating specific local requirements for security, interest rate calculations, and disclosure obligations.

What sections should be included in a Revolving Line Of Credit Loan Agreement?

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

2. Background: Context of the facility and relationship between parties

3. Definitions: Key terms used throughout the agreement

4. Facility Details: Credit limit, purpose, availability period, and interest rate

5. Drawdown Provisions: Procedures and conditions for drawing down the facility

6. Repayment Terms: Payment obligations, schedule, and methods

7. Interest and Fees: Interest calculation, payment dates, and applicable fees

8. Security: Required security or guarantees

9. Events of Default: Circumstances constituting default and consequences

10. Representations and Warranties: Statements of fact and assurances by borrower

What sections are optional to include in a Revolving Line Of Credit Loan Agreement?

1. Financial Covenants: Financial requirements and ratios - typically used for corporate borrowers or larger facilities

2. Increased Costs: Provisions for regulatory changes affecting lender's costs - recommended for longer-term facilities

3. Tax Gross-Up: Provisions for tax deductions and payments - used when tax implications are significant

What schedules should be included in a Revolving Line Of Credit Loan Agreement?

1. Form of Drawdown Notice: Standard form for requesting drawdowns

2. Conditions Precedent: List of documents and conditions required before first drawdown

3. Calculation of Interest: Detailed methodology for interest calculation

4. Security Documents: Forms of security documents if applicable

5. Fee Schedule: Detailed breakdown of all applicable fees

Authors

Alex Denne

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

Jurisdiction

Singapore

Publisher

Ƶ

Document Type

Financing Agreement

Cost

Free to use
Relevant legal definitions








































Clauses

































Industries

Banking Act (Cap. 19): Primary legislation that regulates banking business and credit facilities in Singapore, including provisions on lending limits and restrictions

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

Consumer Protection (Fair Trading) Act: Ensures fair trading practices and protects borrowers from unfair practices in financial transactions

Contracts Act (Cap. 53): Fundamental legislation governing the formation and enforcement of contracts, determining validity of contractual terms in Singapore

MAS Guidelines: Regulatory guidelines issued by Monetary Authority of Singapore covering credit facilities, risk management practices, and responsible lending requirements

ABS Guidelines: Industry standards and best practices for credit facilities and loan documentation issued by the Association of Banks in Singapore

Personal Data Protection Act 2012: Legislation governing the handling of borrower's personal information and data privacy requirements in Singapore

Anti-Money Laundering Laws: Regulatory framework covering customer due diligence requirements and reporting obligations for financial transactions

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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