Loan Referral Agreement Template for Indonesia

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Key Requirements PROMPT example:

Loan Referral Agreement

"I need a Loan Referral Agreement for my fintech company to partner with an Indonesian bank, including integration with our digital platform and a tiered commission structure based on loan value, targeted to launch by March 2025."

Document background
A Loan Referral Agreement is essential for financial institutions in Indonesia seeking to expand their lending business through third-party referral channels. This document is typically used when a lender wishes to formalize arrangements with individuals or companies who will refer potential borrowers, setting out clear terms for referral services, compensation, and regulatory compliance. The agreement must align with Indonesian Financial Services Authority (OJK) regulations, banking laws, and data protection requirements. It includes specific provisions for referral fee structures, lead qualification criteria, confidentiality obligations, and compliance procedures. This type of agreement is particularly relevant in the growing Indonesian fintech sector and traditional banking channels where referral networks play a crucial role in customer acquisition.
Suggested Sections

1. Parties: Identifies the contracting parties - typically the referrer and the lending institution

2. Background: Sets out the context of the agreement, including the lender's business, referrer's capabilities, and intention to establish a referral relationship

3. Definitions: Defines key terms used throughout the agreement, including 'Referral Services', 'Qualified Leads', 'Confidential Information', etc.

4. Appointment and Scope: Establishes the referrer's appointment and defines the scope of referral services

5. Referrer's Obligations: Details the referrer's duties, including lead qualification criteria, information collection, and compliance requirements

6. Lender's Obligations: Outlines the lender's responsibilities regarding lead processing, communication, and support

7. Compensation: Details the referral fee structure, payment terms, and calculation methods

8. Compliance Requirements: Specifies compliance with OJK regulations, banking laws, and other applicable Indonesian regulations

9. Representations and Warranties: Contains standard and specific warranties from both parties

10. Confidentiality: Addresses the handling of confidential information and data protection requirements

11. Term and Termination: Specifies agreement duration and termination provisions

12. General Provisions: Contains standard legal provisions including governing law, dispute resolution, and notices

Optional Sections

1. Marketing and Branding: Include when the referrer will use the lender's branding or conduct marketing activities

2. Training Requirements: Include when the referrer's staff need specific training on loan products

3. Service Levels: Include when specific performance metrics or response times are required

4. Technology Integration: Include when the parties will use integrated systems or platforms

5. Anti-Bribery and Corruption: Include for higher-risk relationships or when dealing with government-linked entities

6. Force Majeure: Include when specific force majeure provisions beyond standard ones are needed

7. Insurance Requirements: Include when specific insurance coverage is required from the referrer

Suggested Schedules

1. Schedule 1 - Referral Fee Structure: Detailed breakdown of commission rates, payment tiers, and calculation methods

2. Schedule 2 - Loan Products: Description of loan products eligible for referral

3. Schedule 3 - Referral Procedures: Detailed operational procedures for making and processing referrals

4. Schedule 4 - Compliance Requirements: Specific regulatory requirements and compliance procedures

5. Schedule 5 - Required Information: List of required information to be collected from potential borrowers

6. Appendix A - Reporting Templates: Standard templates for referral reporting and tracking

7. Appendix B - Marketing Guidelines: Guidelines for use of lender's brand and marketing materials if applicable

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
Clauses
Relevant Industries

Financial Services

Banking

Financial Technology

Insurance

Real Estate

Mortgage Services

Small Business Lending

Consumer Finance

Microfinance

Professional Services

Relevant Teams

Legal

Compliance

Business Development

Sales

Risk Management

Credit Operations

Partner Relations

Product Development

Finance

Customer Operations

Relevant Roles

Business Development Manager

Compliance Officer

Legal Counsel

Partnership Manager

Credit Officer

Risk Manager

Financial Services Director

Channel Manager

Sales Director

Relationship Manager

Chief Compliance Officer

Head of Lending

Business Development Director

Financial Services Manager

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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