Capital Loan Agreement for Singapore

Capital Loan Agreement Template for Singapore

A Capital Loan Agreement under Singapore law is a legally binding document that establishes the terms and conditions for a capital loan between a lender and borrower. It complies with Singapore's Moneylenders Act and Banking Act requirements, detailing loan amount, interest rates, repayment terms, and security arrangements. The agreement includes specific provisions for default, representations, and warranties, while incorporating Singapore's regulatory framework for financial transactions.

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What is a Capital Loan Agreement?

The Capital Loan Agreement is essential for businesses seeking substantial funding for capital expenses, expansion, or operational needs in Singapore. This document is commonly used when significant capital is being borrowed, requiring detailed documentation of terms, conditions, and security arrangements. The agreement must comply with Singapore's strict financial regulations, including MAS guidelines and the Moneylenders Act. It typically includes comprehensive provisions for loan disbursement, repayment schedules, security arrangements, and default scenarios, making it suitable for both corporate and institutional lending arrangements.

What sections should be included in a Capital Loan Agreement?

1. Parties: Identification of lender and borrower with full legal names and registration details

2. Background: Context and purpose of the loan agreement, including relevant commercial context

3. Definitions: Key terms used throughout the agreement including financial and technical terms

4. Loan Amount and Purpose: Specified amount of the loan, currency, and intended use of funds

5. Interest Rate: Interest calculation method, payment terms, and default interest provisions

6. Repayment Terms: Schedule and method of repayment, including prepayment provisions

7. Security: Assets or guarantees securing the loan and enforcement rights

8. Events of Default: Circumstances constituting default and consequences thereof

9. Governing Law: Applicable jurisdiction, dispute resolution mechanisms, and enforcement provisions

What sections are optional to include in a Capital Loan Agreement?

1. Conditions Precedent: Pre-disbursement requirements and documentation needed before loan drawdown

2. Representations and Warranties: Borrower's statements of fact and assurances regarding their legal and financial status

3. Covenants: Ongoing obligations of borrower including financial covenants and reporting requirements

4. Assignment: Rights to transfer or assign the loan and related restrictions

What schedules should be included in a Capital Loan Agreement?

1. Repayment Schedule: Detailed payment dates and amounts including principal and interest breakdown

2. Security Details: Comprehensive description of collateral or security arrangements

3. Conditions Precedent Checklist: List of required documents and conditions to be satisfied before drawdown

4. Form of Drawdown Notice: Template for requesting loan disbursement with required information fields

5. Key Terms Sheet: Summary of main commercial terms and conditions of the loan

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

Singapore

Publisher

Genie AI

Document Type

Financing Agreement

Cost

Free to use
Relevant legal definitions
Clauses
Industries

Moneylenders Act (Chapter 188): Primary legislation that regulates moneylending businesses, applies to licensed moneylenders, and specifies requirements for loan documentation.

Civil Law Act (Chapter 43): Governs contractual relationships, contains provisions about interest rates, and regulates the enforceability of contracts.

Banking Act (Chapter 19): Applicable when the lender is a bank, contains regulatory requirements for banking institutions and their operations.

Contracts Act (Chapter 53): Covers basic contract formation requirements, validity of agreements, and defines rights and obligations of contracting parties.

Personal Data Protection Act 2012: Governs the handling of personal data, including consent requirements and data protection obligations in contractual relationships.

Stamp Duties Act (Chapter 312): Specifies requirements for stamp duty on loan documents, including timing and payment obligations.

MAS Guidelines: Regulatory guidelines from the Monetary Authority of Singapore covering lending regulations and anti-money laundering requirements for financial institutions.

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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