Document background
The Credit Agreement Letter is a fundamental document in Indonesian banking and finance, used when a financial institution extends credit to individuals or corporate entities. It must comply with Indonesian banking regulations, including Law No. 10 of 1998 and OJK directives, while incorporating necessary consumer protections. The document typically includes credit terms, interest calculations, repayment schedules, and any security arrangements. It's essential for both secured and unsecured lending, ranging from personal loans to corporate credit facilities. The agreement must be drafted in accordance with Indonesian civil law principles and banking practices, often requiring notarization for larger facilities. This document serves as the primary evidence of the credit relationship and is crucial for enforcement under Indonesian law.
