Document background
The Loan Agreement And Promissory Note is a crucial document used in Indonesian financial transactions to establish legally binding lending arrangements while incorporating a negotiable debt instrument. It is commonly used by banks, financial institutions, and businesses when extending credit or loans, providing both the detailed terms of the lending arrangement and a separate promissory note that can be independently enforced. This document type complies with Indonesian banking regulations, the Civil Code (KUHPerdata), and Commercial Code (KUHD) requirements, making it suitable for both commercial and personal lending. The inclusion of both agreement and promissory note elements provides additional security for lenders while ensuring clarity of obligations for borrowers. It's particularly valuable when the lender requires both comprehensive loan terms and a negotiable instrument that can be easily transferred or used for enforcement.
