The Commercial Loan Broker Fee Agreement is essential for businesses seeking commercial financing through professional intermediaries in India. This document is used when a company or individual engages a broker to facilitate obtaining commercial loans from financial institutions. It establishes the legal framework for the broker-client relationship, detailing service scope, fee structures, and success criteria. The agreement must comply with Indian banking regulations, the Banking Regulation Act, 1949, and relevant RBI guidelines. It's particularly important for protecting both parties' interests by clearly defining responsibilities, payment terms, and performance expectations. The document typically includes provisions for regulatory compliance, risk management, and dispute resolution mechanisms specific to the Indian jurisdiction.

1. Parties: Identification of the broker and the client, including full legal names, addresses, and registration details

2. Background: Context of the agreement and brief description of the parties' intentions

3. Definitions: Definitions of key terms used throughout the agreement

4. Scope of Services: Detailed description of the broker's services, including loan sourcing, documentation assistance, and negotiation support

5. Broker's Obligations: Specific duties and responsibilities of the broker, including due diligence and information disclosure requirements

6. Client's Obligations: Client's responsibilities, including providing accurate information and necessary documentation

7. Fee Structure: Detailed breakdown of broker's fees, including calculation method, timing, and payment terms

8. Payment Terms: Specifics of how and when payments will be made, including any conditions precedent

9. Confidentiality: Provisions for handling confidential information shared during the engagement

10. Term and Termination: Duration of the agreement and circumstances under which it can be terminated

11. Representations and Warranties: Standard representations and warranties from both parties

12. Indemnification: Mutual indemnification provisions and liability limitations

13. Governing Law and Jurisdiction: Specification of Indian law as governing law and jurisdiction for disputes

14. Notices: Process and addresses for formal communications between parties

15. General Provisions: Standard boilerplate clauses including severability, entire agreement, and amendments