Business Loan Agreement

A business loan agreement is a litigate commitment between a financial organisation and an interested entrepreneur or organization, who is willing to take a certain amount of loan to invest in some business. Such a loan agreement is properly based on the strict official covenants.

Sample Business Loan Agreement:

Business loan agreement No: 798/ BLA

Date: January28th, 2011

This business loan agreement is made & entered between

Details of the Bank

Name: American Bank Pvt. Ltd

Phone Number: 7849 236 6700

Hereinafter known as the banker

Details of organization:

Name: Rose Companies Pvt. Ltd

Phone Number: 6879 473 8903

Hereinafter known as the borrower

Whereas the banker is willing to issue the promised amount of loan and the borrower has agreed to the rate of interest & other official condition.

This agreement is effective from January 29th, 2011 and is terminating on 29th, 2012.

Term & conditions:

  • The borrower can use 50% of the amount in first six months and 50% of the amount after six months.
  • The borrower will pay an instalment of $ 8000 to the banker on 7th of every month. The rate of interest is 5%.
  • A late instalment submission will be charged with 35% of the total payment.
  • Any interruption in payment and monetary issue can cause agreement termination.

Validation of the agreement by both the parties:

Signed by the Banker                             Signed by the Borrower:

Tina Williams                                         Tim Murphy

Category: Business Agreements

Leave a Reply