Business Loan Broker Agreement for India

Business Loan Broker Agreement Template for India

A comprehensive legal agreement governed by Indian law that establishes the terms and conditions under which a loan broker will provide services to assist a business in obtaining financing. The document outlines the broker's responsibilities, compensation structure, compliance requirements under Indian financial regulations, and the business client's obligations. It includes provisions for confidentiality, regulatory compliance with RBI guidelines, anti-money laundering requirements, and specific terms for loan facilitation services. The agreement is structured to comply with the Indian Contract Act, 1872, and relevant financial services regulations.

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What is a Business Loan Broker Agreement?

The Business Loan Broker Agreement is essential for businesses in India seeking professional assistance in securing financing through intermediaries. This document is typically used when a business engages a professional broker to facilitate loan arrangements with financial institutions. The agreement covers crucial aspects such as broker compensation, service scope, regulatory compliance, and risk allocation. It must comply with Indian financial regulations, including RBI guidelines and the Prevention of Money Laundering Act. The document is particularly important given India's complex financial regulatory landscape and the increasing role of professional intermediaries in business financing. It serves to protect both the broker's interests in receiving compensation and the business client's interests in obtaining professional loan facilitation services.

What sections should be included in a Business Loan Broker Agreement?

1. Parties: Identifies and provides details of the broker and the business client

2. Background: Explains the context of the agreement, including the broker's qualifications and the business's need for loan broking services

3. Definitions: Defines key terms used throughout the agreement

4. Scope of Services: Details the specific loan broking services to be provided

5. Broker's Obligations: Lists the duties and responsibilities of the broker

6. Client's Obligations: Outlines the responsibilities and commitments of the business client

7. Fees and Commission Structure: Details the compensation structure, payment terms, and conditions

8. Confidentiality: Provisions for handling confidential information

9. Compliance Requirements: Specifies regulatory compliance obligations under Indian law

10. Term and Termination: Duration of the agreement and termination provisions

11. Representations and Warranties: Standard declarations by both parties

12. Indemnification: Mutual indemnification provisions

13. General Provisions: Standard boilerplate clauses including governing law, notices, etc.

What sections are optional to include in a Business Loan Broker Agreement?

1. Exclusivity: Used when the broker is granted exclusive rights to arrange loans for the business

2. Success Fee Structure: Include when there's a separate success-based compensation structure

3. Multi-jurisdiction Operations: Required when the broker operates across multiple Indian states

4. Sub-broker Arrangements: Include when the broker may engage sub-brokers

5. Digital Services: Include when the broker provides online or digital loan broking services

6. Performance Metrics: Used when specific performance standards are required

7. Insurance Requirements: Include when specific insurance coverage is mandatory

What schedules should be included in a Business Loan Broker Agreement?

1. Schedule 1 - Service Description: Detailed description of loan broking services

2. Schedule 2 - Fee Structure: Detailed breakdown of fees, commissions, and payment terms

3. Schedule 3 - Compliance Checklist: List of regulatory requirements and compliance procedures

4. Schedule 4 - Required Documentation: List of documents required from the client for loan processing

5. Appendix A - Power of Attorney: If broker needs specific authorization to act on behalf of the business

6. Appendix B - Service Level Agreement: Specific performance metrics and service standards

7. Appendix C - Approved Lender List: List of pre-approved lenders 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

Jurisdiction

India

Publisher

Genie AI

Document Type

Loan Agreement

Sector

Banking

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Financial Services

Banking

Small and Medium Enterprises

Corporate Finance

Real Estate

Manufacturing

Technology

Retail

Healthcare

Construction

Agriculture

Transportation

Hospitality

Education

Relevant Teams

Legal

Finance

Treasury

Compliance

Risk Management

Operations

Commercial

Business Development

Credit

Corporate Affairs

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Financial Controller

Business Development Manager

Loan Officer

Compliance Officer

Legal Counsel

Risk Manager

Managing Director

Finance Manager

Commercial Director

Operations Manager

Credit 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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