Document background
The Credit Facilities Agreement is essential for any lending arrangement in India where a financial institution extends credit to a borrower. This document is commonly used when establishing term loans, working capital facilities, or other credit arrangements, and must comply with Indian banking regulations and RBI guidelines. It covers crucial aspects such as facility limits, interest rates, security arrangements, representations and warranties, and events of default. The agreement is particularly important as it creates legally binding obligations while ensuring regulatory compliance in the Indian banking sector. It includes provisions for both secured and unsecured facilities, and can be adapted for various types of borrowers, from large corporations to SMEs.
