Document background
The Commercial Loan Agreement is a fundamental document in South African business financing, used when a financial institution provides substantial funding to a commercial entity. This agreement is essential for medium to large-scale business loans, covering all aspects from disbursement to repayment, security arrangements, and borrower obligations. It must comply with South African banking regulations, companies law, and financial sector legislation, while incorporating market-standard commercial lending practices. The document is particularly important in the context of South Africa's developed financial sector, where commercial lending plays a crucial role in business growth and economic development. It includes provisions for security, financial covenants, and regulatory compliance specific to the South African jurisdiction.
