Document background
A Company Loan Agreement is essential when one company extends credit to another in India, whether for business expansion, working capital, or specific project financing. This document, governed by Indian law, particularly the Indian Contract Act 1872 and Companies Act 2013, outlines the complete lending relationship between the parties. It includes crucial elements such as loan amount, interest calculations, repayment schedules, security arrangements, events of default, and remedies. The agreement must comply with Indian banking regulations if the lender is a financial institution, and requires proper corporate authorizations from both parties. It's particularly important for documenting inter-corporate loans and ensuring regulatory compliance while protecting both lender and borrower interests through clear terms and conditions.
