Document background
The Simple Loan Term Sheet is a fundamental document in Hong Kong lending transactions, typically used in the preliminary stages of loan negotiations to document the essential terms agreed between parties. It serves as a roadmap for the preparation of full loan documentation and is particularly useful in both corporate and personal lending scenarios. The document captures key commercial terms such as facility amount, interest rate, tenure, and security requirements, while reflecting compliance with Hong Kong lending regulations, including the Money Lenders Ordinance and Interest Rate Cap Ordinance. While most provisions in a Simple Loan Term Sheet are non-binding, it creates a moral commitment between parties and helps prevent misunderstandings during the documentation phase.
