Document background
The Secured Credit Agreement serves as the primary documentation for secured lending transactions in India, establishing the legal framework for credit facilities backed by collateral. This document is essential when a lender (typically a bank or financial institution) provides financing secured against specific assets of the borrower. The agreement must comply with Indian banking regulations, security creation requirements, and enforcement mechanisms under the SARFAESI Act and other relevant legislation. It details the entire lending relationship, including facility terms, security structure, operational requirements, borrower obligations, and enforcement rights. The document is particularly crucial in the Indian context due to specific regulatory requirements for security creation, registration, and enforcement, making it a fundamental tool for secured lending transactions while providing lenders with enforceable security interests under Indian law.
