Loan Participation Agreement Template for Indonesia

Create a bespoke document in minutes,  or upload and review your own.

4.6 / 5
4.8 / 5

Let's create your Loan Participation Agreement

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Get your first 2 documents free

Your data doesn't train Genie's AI

You keep IP ownership of your information

Key Requirements PROMPT example:

Loan Participation Agreement

"I need a Loan Participation Agreement under Indonesian law for a 30% funded participation in a USD 50 million corporate loan, with provisions for potential additional participants to join by March 2025."

Document background
The Loan Participation Agreement is a crucial document in Indonesian banking and finance practice, used when a lender wishes to transfer economic interest in a loan while maintaining the direct lending relationship with the borrower. This structure is particularly valuable in the Indonesian context where direct loan transfers may be restricted or impractical. The agreement must comply with OJK Regulation No. 40/POJK.03/2019 and relevant Bank Indonesia regulations, particularly regarding asset quality assessment and foreign exchange transactions. It's commonly used for risk sharing, portfolio management, and regulatory capital management purposes. The document details participation percentages, payment mechanisms, voting rights, and information sharing arrangements, while ensuring compliance with Indonesian banking secrecy laws and financial regulations. This type of agreement is especially relevant in scenarios involving cross-border transactions, large corporate loans, or project financing where risk sharing is desired.
Suggested Sections

1. Parties: Identifies the original lender (grantor) and participant(s), including their complete legal names and addresses

2. Background: Describes the underlying loan agreement, the original lender's desire to sell a participation, and the participant's desire to purchase it

3. Definitions: Defines key terms used throughout the agreement, including Participation, Participated Interest, Underlying Loan, etc.

4. Sale and Purchase of Participation: Details the participation interest being sold, purchase price, and effective date

5. Payments and Distributions: Specifies how payments received from the borrower will be shared between grantor and participant

6. Rights and Obligations of the Parties: Outlines the respective rights and duties of the grantor and participant

7. Administration of the Underlying Loan: Describes how the underlying loan will be managed and what rights the participant has in decision-making

8. Representations and Warranties: Contains standard representations and warranties from both parties

9. Communication and Information Rights: Details what information the grantor must provide to the participant about the underlying loan

10. Confidentiality: Establishes confidentiality obligations regarding the agreement and underlying loan information

11. Tax Provisions: Addresses tax implications and responsibilities

12. Events of Default: Lists circumstances constituting default and consequences

13. Termination: Specifies how and when the agreement can be terminated

14. Governing Law and Jurisdiction: Specifies Indonesian law as governing law and jurisdiction for disputes

15. Miscellaneous: Standard boilerplate provisions including notices, amendments, assignments, etc.

Optional Sections

1. Multi-Participant Provisions: Required when there are multiple participants, detailing voting rights and decision-making processes

2. Security Arrangements: Needed when the underlying loan is secured, describing how security interests are shared

3. Risk Participation Provisions: Used for unfunded risk participations where no upfront payment is made

4. Currency Exchange Provisions: Required when the participation involves multiple currencies

5. Regulatory Compliance: Specific provisions required for compliance with particular Indonesian banking regulations

6. Sub-Participation Rights: Optional section allowing/restricting the participant's right to grant sub-participations

7. Buy-Back Provisions: Optional provisions allowing the grantor to buy back the participation under certain circumstances

Suggested Schedules

1. Schedule 1 - Details of the Underlying Loan: Contains key information about the underlying loan including borrower details, amount, interest rate, maturity

2. Schedule 2 - Participation Details: Specifies the exact percentage/amount of participation and purchase price

3. Schedule 3 - Form of Transfer Certificate: Standard form for documenting the transfer of the participation interest

4. Schedule 4 - Administrative Details: Contains contact details and bank account information for both parties

5. Schedule 5 - Form of Participation Certificate: Standard form evidencing the participant's interest

6. Appendix A - Underlying Loan Agreement: Copy of the original loan agreement (may be redacted)

7. Appendix B - Required Notices and Forms: Contains any regulatory notices or forms required under Indonesian law

8. Appendix C - Calculation Methods: Details the methods for calculating participation shares, interest, and other amounts

Authors

Alex Denne

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

Relevant legal definitions
Relevant Industries

Banking

Financial Services

Investment Management

Insurance

Private Equity

Asset Management

Corporate Lending

Project Finance

Infrastructure

Real Estate

Mining

Oil & Gas

Manufacturing

Agricultural Finance

Telecommunications

Relevant Teams

Legal

Finance

Treasury

Risk Management

Compliance

Credit Administration

Portfolio Management

Syndications

Corporate Banking

Regulatory Reporting

Operations

Credit Analysis

Transaction Management

Investment Management

Relevant Roles

Chief Financial Officer

Head of Legal

Treasury Manager

Risk Management Officer

Compliance Officer

Credit Risk Manager

Portfolio Manager

Syndications Manager

Legal Counsel

Banking Operations Manager

Investment Officer

Relationship Manager

Credit Administrator

Finance Director

Corporate Banking Manager

Regulatory Reporting Officer

Transaction Manager

Senior Credit 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

Find the exact document you need

Hire Purchase Agreement For Vehicle

An Indonesian law-governed agreement for vehicle financing through hire purchase arrangement, detailing payment terms, ownership conditions, and parties' obligations.

find out more

Simple Interest Loan Contract

An Indonesian law-governed loan agreement establishing terms for a simple interest loan, compliant with local banking and financial services regulations.

find out more

Agreement Between Financier And Company

An Indonesian law-governed financing agreement between a financier and company, setting out terms for funding, repayment, and security arrangements.

find out more

Legal Financial Agreement Between Two Parties

An Indonesian law-governed agreement establishing financial obligations between two parties, incorporating key regulatory requirements and protective provisions for both parties.

find out more

Employees Loan Agreement

An Indonesian law-governed agreement establishing terms for an employer-provided loan to an employee, including repayment through salary deductions.

find out more

Syndicated Loan Term Sheet

A term sheet outlining key terms and conditions for a syndicated loan facility under Indonesian law and banking regulations.

find out more

Master Securities Loan Agreement

An Indonesian law-governed framework agreement for securities lending transactions between financial institutions, compliant with OJK regulations and capital market laws.

find out more

Intercreditor Deed

An Indonesian law-governed agreement establishing rights, priorities, and relationships between multiple creditors in a financing arrangement.

find out more

Co Financing Agreement

An Indonesian law-governed agreement establishing terms for multiple lenders to jointly provide financing to a borrower, detailing participation, security, and regulatory compliance requirements.

find out more

Litigation Funding Agreement

An agreement under Indonesian law governing third-party funding of legal proceedings, detailing funding terms, success fees, and proceed distribution.

find out more

Loan Agreement Between Lender And Borrower

Indonesian law-governed loan agreement establishing terms between lender and borrower, compliant with OJK regulations and Indonesian Civil Code.

find out more

Individual To Individual Loan Agreement

An Indonesian law-governed agreement establishing loan terms between two private individuals, including loan amount, interest, and repayment conditions.

find out more

Loan Participation Agreement

An Indonesian law-governed agreement establishing the terms for a financial institution's participation in a loan, including payment mechanisms and regulatory compliance requirements.

find out more

Loan For Use Agreement

Indonesian law-compliant Loan for Use Agreement template for temporary, gratuitous use of items, structured under KUHPer provisions.

find out more

Loan Agreement Term Sheet

A preliminary agreement under Indonesian law outlining key terms and conditions for a proposed loan facility, serving as the foundation for detailed loan documentation.

find out more

Loan Agreement Deed

An Indonesian law-governed notarial deed establishing the terms and conditions of a loan facility, with enhanced legal enforceability through notarization.

find out more

Lease Hire Agreement

An Indonesian law-governed Lease Hire Agreement establishing terms for asset leasing, compliant with local regulations and OJK requirements.

find out more

Co Borrower Loan Agreement

An Indonesian law-governed agreement establishing terms for multiple borrowers jointly responsible for a loan, compliant with OJK regulations and the Civil Code.

find out more

Bridge Loan Contract

An Indonesian law-governed temporary financing agreement providing interim funding until permanent financing is secured, compliant with local banking and security regulations.

find out more

Trade Finance Agreement

An Indonesian law-governed agreement establishing terms for trade finance facilities between financial institutions and trading companies, incorporating local regulatory requirements and international trade finance practices.

find out more

Short Term Loan Agreement

An Indonesian law-governed agreement establishing terms and conditions for a short-term loan between lender and borrower, including loan amount, interest, repayment terms, and security arrangements.

find out more

Real Estate Loan Agreement

An Indonesian law-governed agreement establishing terms and conditions for a property-backed loan, including security arrangements and regulatory compliance requirements.

find out more

Project Finance Contract

Indonesian law-governed project finance agreement structuring funding and security arrangements for large-scale infrastructure and development projects.

find out more

Personal Car Loan Agreement

An Indonesian law-governed agreement for vehicle financing between a financial institution and individual borrower, establishing loan terms and security arrangements.

find out more

Official Loan Agreement

An Indonesian law-governed agreement establishing formal lending terms between a financial institution and borrower, compliant with local banking regulations and OJK requirements.

find out more

Margin Loan Agreement

An Indonesian law-governed agreement establishing terms for margin lending facilities, secured by financial instruments as collateral and regulated by OJK.

find out more

Loan Agreement Between Spouses

An Indonesian law-compliant loan agreement template for married couples, incorporating relevant marriage law and civil code requirements.

find out more

Financing Contract Agreement

An Indonesian law-governed financing agreement establishing terms for credit facilities, including security arrangements and regulatory compliance requirements.

find out more

Financial Support Agreement

An Indonesian law-governed agreement establishing terms for financial support between parties, compliant with OJK regulations and Indonesian financial laws.

find out more

Financial Agreement Between Two Parties

Indonesian law-compliant financial agreement template establishing terms and conditions for financial arrangements between two parties.

find out more

Contract For Car Payments

An Indonesian law-governed agreement establishing terms and conditions for vehicle purchase payments, including financial obligations and ownership terms.

find out more

Car Finance Contract

An Indonesian law-governed agreement establishing terms and conditions for vehicle financing, compliant with OJK regulations and local financial services requirements.

find out more

Business Loan Contract

An Indonesian law-governed agreement establishing terms for business financing between a lender and business borrower, compliant with local banking regulations.

find out more

Bridge Facility Agreement

An Indonesian law-governed temporary financing arrangement providing interim funding pending permanent financing, compliant with Indonesian banking regulations and OJK requirements.

find out more

Bank Guarantee Agreement

An Indonesian law-governed agreement where a bank guarantees payment to a beneficiary upon the principal's default, subject to Indonesian banking regulations and OJK requirements.

find out more

Auto Finance Contract

An Indonesian law-governed vehicle financing agreement establishing terms and conditions for auto loans, compliant with OJK regulations.

find out more

Owner Financing Contract For Deed

An Indonesian law-governed agreement where the property seller finances the buyer's purchase, detailing payment terms and gradual ownership transfer conditions.

find out more

Inventory Loan Agreement

An Indonesian law-governed agreement establishing terms for temporary loan of inventory items between parties, including usage conditions and return provisions.

find out more

Commercial Finance Agreement

An Indonesian law-governed agreement establishing terms for commercial lending between financial institutions and corporate borrowers, compliant with OJK and Bank Indonesia regulations.

find out more

Medical Equipment Loan Agreement

An Indonesian law-governed agreement for the temporary loan of medical equipment, incorporating local healthcare regulations and safety standards.

find out more

Permanent Loan Agreement

An Indonesian law-governed agreement establishing terms for permanent loan of items while maintaining original ownership rights.

find out more

Floor Plan Financing Agreement

An Indonesian law-governed agreement establishing terms for inventory financing between a financial institution and a dealer, including security arrangements and operational requirements.

find out more

Guarantee Agreement For Loan

An Indonesian law-governed agreement where a Guarantor secures the loan obligations of a Principal Debtor to a Creditor, structured under Indonesian Civil Code requirements.

find out more

Simple Interest Loan Agreement

An Indonesian law-governed agreement establishing terms for a loan with simple interest calculation, compliant with local banking regulations and civil code requirements.

find out more

Third Party Loan Agreement

Indonesian law-governed loan agreement involving third-party security or guarantees, structuring the relationship between lender, borrower, and third-party security provider.

find out more

Loan Agreement Between Friends

An Indonesian law-compliant loan agreement template for formalizing monetary lending arrangements between friends, incorporating essential legal protections while maintaining relationship sensitivity.

find out more

Owner Finance Car Sale Contract

An Indonesian law-compliant agreement combining vehicle sale and seller-provided financing terms, with security interest provisions and ownership transfer conditions.

find out more

Factoring Receivables Agreement

An Indonesian law-governed agreement for the sale and purchase of trade receivables between a business and a financial institution, providing working capital financing through factoring.

find out more

Business Funding Agreement

An Indonesian law-governed agreement establishing terms and conditions for business funding arrangements, including funding provisions, security requirements, and regulatory compliance.

find out more

Working Capital Facility Agreement

An Indonesian law-governed agreement establishing terms for providing working capital financing facilities, compliant with local banking regulations.

find out more

Conditional Loan Agreement

An Indonesian law-governed agreement setting out terms for a conditional loan facility, subject to specific requirements being met before drawdown.

find out more

Vendor Finance Contract

An Indonesian law-governed agreement establishing vendor financing arrangements between finance provider, vendor, and customer, with associated security and regulatory compliance provisions.

find out more

Loan Syndication Agreement

An Indonesian law-governed agreement establishing a syndicated loan facility with multiple lenders providing financing under common terms and regulatory requirements.

find out more

Loan Agreement With Notary

An Indonesian notarial deed establishing loan terms and conditions, providing enhanced legal certainty under Indonesian law.

find out more

Car Loan Promissory Note

An Indonesian law-compliant promissory note for vehicle financing that includes loan terms, vehicle details, and security interests.

find out more

Business Finance Agreement

An Indonesian law-governed agreement establishing terms for business financing between a lender and corporate borrower, compliant with local banking and financial services regulations.

find out more

Subsidiary Loan Agreement

An Indonesian law-governed loan agreement between a parent company and its subsidiary, establishing terms for intra-group financing and regulatory compliance.

find out more

Funding Term Sheet

A preliminary investment document outlining key terms and conditions for funding transactions in Indonesia, serving as the basis for definitive agreements.

find out more

Consumer Loan Agreement

An Indonesian law-governed agreement setting out terms and conditions for a consumer loan, compliant with OJK regulations and consumer protection requirements.

find out more

Royalty Based Financing Agreement

An Indonesian law-governed agreement establishing a performance-based financing arrangement where returns are structured as royalty payments, compliant with local investment regulations.

find out more

Loan Pledge Agreement

An Indonesian law agreement establishing a pledge over assets as security for a loan, detailing pledge rights and enforcement mechanisms under Indonesian law.

find out more

Inventory Financing Agreement

An Indonesian law-governed agreement establishing inventory-based financing terms and security arrangements, compliant with local secured lending regulations.

find out more

Loan Market Agreement

Indonesian law-governed financing agreement establishing terms and conditions for lending arrangements, compliant with local banking and OJK regulations.

find out more

Instrument Loan Agreement

An Indonesian law-governed agreement for the temporary loan of instruments or equipment, outlining terms, conditions, and parties' responsibilities.

find out more

Accounts Receivable Financing Agreement

An Indonesian law-governed agreement establishing terms for the purchase of accounts receivable by a finance company from a business, subject to OJK regulations.

find out more

Partnership Loan Agreement

An Indonesian law-governed agreement establishing loan terms between business partners, combining partnership and lending elements under Indonesian regulatory framework.

find out more

Senior Loan Agreement

An Indonesian law-governed agreement establishing terms for a senior debt facility, including loan terms, security arrangements, and regulatory compliance requirements.

find out more

Guarantor Agreement For Loan

An Indonesian law agreement where a guarantor commits to fulfilling a borrower's loan obligations in case of default.

find out more

Car Finance Agreement

An Indonesian law-governed agreement between a finance company and customer establishing terms for vehicle financing, security interests, and payment obligations.

find out more

Asset Loan Agreement

An Indonesian law-governed agreement for the temporary transfer of assets between parties, establishing usage terms and compliance with local regulations.

find out more

Revenue Based Financing Agreement

An Indonesian law-governed agreement providing business financing in exchange for a percentage of future revenue streams, with flexible repayment terms based on revenue performance.

find out more

Limited Recourse Loan Agreement

An Indonesian law-governed loan agreement limiting lender's recourse to specific assets or project revenues, typically used in project finance transactions.

find out more

Novation Lease Agreement

An Indonesian law-governed agreement that transfers lease rights and obligations from one party to another while maintaining the original lease terms.

find out more

Purchase Order Financing Agreement

An Indonesian law-governed agreement for financing purchase orders, providing businesses with working capital against their confirmed orders.

find out more

Property Loan Agreement

An Indonesian law-governed agreement establishing terms and conditions for a property-backed loan, including security arrangements and compliance with local banking regulations.

find out more

Profit Sharing Loan Agreement

An Indonesian law-governed agreement establishing a profit-sharing loan arrangement between lender and borrower, detailing profit distribution mechanics and compliance requirements.

find out more

Profit Participating Loan Agreement

An Indonesian law-governed agreement for a loan facility that combines traditional debt features with profit-sharing elements.

find out more

Pre Financing Agreement

An Indonesian law-governed agreement establishing preliminary financing terms between a lender and borrower, subject to OJK regulations.

find out more

Intercompany Revolving Loan Agreement

An Indonesian law agreement establishing a revolving loan facility between related companies within the same corporate group, enabling flexible borrowing and repayment arrangements.

find out more

Debt Facility Agreement

An Indonesian law-governed agreement establishing terms and conditions for a lending facility between a lender and borrower, compliant with Indonesian banking regulations.

find out more

Building Loan Agreement

An Indonesian law-governed agreement between a financial institution and borrower for construction project financing, subject to Indonesian banking and construction regulations.

find out more

Company Loan Agreement

An Indonesian law-governed agreement setting out terms and conditions for a corporate loan, including loan amount, interest, repayment terms, and parties' obligations.

find out more

Capital Loan Agreement

An Indonesian law-governed agreement establishing terms and conditions for a capital loan, including loan amount, interest rates, and repayment terms.

find out more

Working Capital Loan Agreement

An Indonesian law-governed agreement for working capital financing, setting out loan terms, conditions, and security arrangements in compliance with local banking regulations.

find out more

Informal Loan Agreement

An informal yet legally compliant loan agreement template for personal and small business loans in Indonesia, governed by Indonesian Civil Code.

find out more

Private Mortgage Loan Agreement

An Indonesian law-governed agreement establishing terms and security rights for a private mortgage loan, creating enforceable obligations under Indonesian mortgage regulations.

find out more

Peer To Peer Loan Agreement

An Indonesian law-governed agreement facilitating peer-to-peer lending transactions through regulated P2P platforms, compliant with OJK regulations.

find out more

Loan Sharing Agreement

An Indonesian law-governed agreement establishing terms and conditions for multiple lenders participating in a shared loan facility.

find out more

Equipment Finance Agreement

An Indonesian law-governed agreement establishing terms and conditions for equipment financing, including security arrangements and regulatory compliance.

find out more

Debt Financing Agreement

An Indonesian law-governed agreement establishing terms and conditions for providing debt financing, including loan terms, security arrangements, and regulatory compliance requirements.

find out more

Tool Loan Agreement

An Indonesian law-governed agreement establishing terms and conditions for temporary tool lending between parties, ensuring legal protection for both lender and borrower.

find out more

Commercial Loan Agreement

An Indonesian law-governed agreement establishing terms and conditions for a commercial loan between a lender and borrower, including loan amount, interest, repayment terms, and security arrangements.

find out more

Loan And Security Agreement

An Indonesian law-governed agreement combining loan facility terms and security arrangements, establishing both lending obligations and enforceable security interests.

find out more

Corporate Loan Agreement

An Indonesian law-governed agreement setting out terms and conditions for corporate borrowing from financial institutions, compliant with local banking regulations and civil code requirements.

find out more

Financial Management Agreement

An Indonesian law-governed agreement between a financial manager and client for professional financial management services, regulated by OJK.

find out more

Non Recourse Loan Agreement

An Indonesian law-governed loan agreement where the lender's recovery is limited to specific secured assets, structured in compliance with Indonesian banking and security regulations.

find out more

No Interest Loan Agreement

An Indonesian law-governed agreement establishing terms for an interest-free loan, including disbursement, repayment, and borrower obligations.

find out more

House Loan Agreement

An Indonesian law-governed agreement establishing terms and conditions for a property loan, including security arrangements and regulatory compliance requirements.

find out more

Guarantee Facility Agreement

An Indonesian law-governed agreement establishing terms for a guarantee facility, detailing guarantor obligations and compliance with local banking regulations.

find out more

Secured Loan Agreement

An Indonesian law-governed agreement establishing terms for a secured loan facility, including security arrangements and enforcement provisions under local law.

find out more

Download our whitepaper on the future of AI in Legal

By providing your email address you are consenting to our Privacy Notice.
Thank you for downloading our whitepaper. This should arrive in your inbox shortly. In the meantime, why not jump straight to a section that interests you here: https://www.genieai.co/our-research
Oops! Something went wrong while submitting the form.

Genie’s Security Promise

Genie is the safest place to draft. Here’s how we prioritise your privacy and security.

Your documents are private:

We do not train on your data; Genie’s AI improves independently

All data stored on Genie is private to your organisation

Your documents are protected:

Your documents are protected by ultra-secure 256-bit encryption

Our bank-grade security infrastructure undergoes regular external audits

We are ISO27001 certified, so your data is secure

Organizational security

You retain IP ownership of your documents

You have full control over your data and who gets to see it

Innovation in privacy:

Genie partnered with the Computational Privacy Department at Imperial College London

Together, we ran a £1 million research project on privacy and anonymity in legal contracts

Want to know more?

Visit our Trust Centre for more details and real-time security updates.