Document background
The Loan Facility Letter is a crucial document in Singapore's financial sector, used when a lender offers credit facilities to a borrower. It serves as the primary agreement documenting the loan relationship and must comply with Singapore's robust financial regulatory framework, including MAS guidelines and the Banking Act. The letter typically includes facility limits, interest calculations, repayment schedules, security requirements, and conditions for drawdown. It's particularly important in Singapore's financial hub context, where clear documentation of financial obligations is essential for both regulatory compliance and business certainty.
