Document background
The Loan Master Agreement serves as an umbrella agreement for establishing multiple credit facilities under a single comprehensive framework in Malaysia. It is primarily used when a borrower requires access to various types of financing (such as term loans, revolving facilities, or trade financing) from the same lender over time. The agreement complies with Malaysian banking regulations, including the Financial Services Act 2013 and, where applicable, the Islamic Financial Services Act 2013. It streamlines the lending process by setting out standard terms that apply to all facilities while allowing specific terms to be documented in supplemental facility letters or drawdown notices. This approach reduces documentation requirements and ensures consistency across multiple facilities while providing flexibility to accommodate different financing needs over time.
