Senior Loan Agreement Template for India

The Senior Loan Agreement is a fundamental document in corporate financing transactions under Indian law, typically used for significant corporate borrowings, project finance, or large-scale capital expenditure. It establishes the primary credit facility that takes priority over other debt instruments in terms of repayment and security rights. The agreement must comply with Indian banking regulations, including RBI guidelines on interest rates, security creation, and foreign investment restrictions where applicable. It includes comprehensive provisions on loan disbursement, repayment mechanisms, security structure, events of default, and enforcement rights, all tailored to the Indian legal framework. This document is crucial for both domestic and cross-border financing transactions where Indian assets or entities are involved.

1. Parties: Identification of the lender(s) and borrower(s) with their complete legal names and addresses

2. Background: Recitals explaining the context of the loan, purpose, and basic transaction structure

3. Definitions and Interpretation: Comprehensive definitions of terms used in the agreement and rules of interpretation

4. The Facility: Details of the loan amount, purpose, and availability period

5. Conditions Precedent: Conditions that must be satisfied before drawdown

6. Drawdown: Procedures and requirements for borrowing under the facility

7. Interest: Interest rate, calculation methods, payment dates, and default interest provisions

8. Repayment: Terms of repayment including scheduled payments and final maturity

9. Prepayment: Voluntary and mandatory prepayment provisions

10. Representations and Warranties: Statements of fact and assurances given by the borrower

11. Information Undertakings: Borrower's obligations to provide financial and other information

12. Financial Covenants: Financial ratios and tests the borrower must maintain

13. General Undertakings: Positive and negative covenants governing borrower's activities

14. Events of Default: Circumstances that allow the lender to cancel the facility and demand repayment

15. Changes to Parties: Provisions regarding assignment and transfer rights

16. Administration: Practical provisions about payments, calculations, and notices

17. Governing Law and Jurisdiction: Choice of Indian law and jurisdiction provisions

18. Execution: Signature blocks and execution formalities