Document background
The Revolving Credit Facility Agreement is a crucial financing document used in the Indian market when a borrower requires flexible access to funding that can be drawn, repaid, and redrawn over time. This type of facility is particularly useful for managing working capital needs, seasonal business fluctuations, or ongoing operational requirements. The agreement must comply with Indian regulatory requirements, including Reserve Bank of India guidelines, Banking Regulation Act provisions, and general principles of Indian contract law. It contains detailed provisions covering facility limits, drawdown mechanics, interest calculations, security structure (if applicable), representations, warranties, covenants, and events of default. The document is typically customized based on the borrower's credit profile, the purpose of the facility, and specific commercial terms agreed between the parties.
