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Lending Loan Agreement Template for Indonesia

A comprehensive legal document governed by Indonesian law that establishes the terms and conditions of a loan between a lender and borrower. The agreement complies with Indonesian banking regulations and civil code requirements, detailing loan amount, interest rates, repayment terms, security arrangements, and default provisions. It incorporates specific Indonesian legal requirements including mandatory Indonesian language versions, notarization requirements, and compliance with OJK (Financial Services Authority) regulations. The document provides legal protection for both parties while ensuring enforceability under Indonesian jurisdiction.

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What is a Lending Loan Agreement?

This Lending Loan Agreement template is designed for use in Indonesian jurisdiction, incorporating all necessary elements required by Indonesian banking laws and regulations. The document is essential for any lending transaction, whether for corporate financing, project funding, or general business purposes. It serves as a legally binding contract that protects both lender and borrower interests while ensuring compliance with Indonesian Civil Code and banking regulations. The agreement includes comprehensive provisions for loan disbursement, repayment terms, security arrangements, and default scenarios, all structured to meet local legal requirements. It's particularly important that this Lending Loan Agreement incorporates specific Indonesian requirements such as dual language provisions, proper execution formalities, and compliance with OJK (Financial Services Authority) guidelines.

What sections should be included in a Lending Loan Agreement?

1. Parties: Identification of the lender and borrower with complete legal names and addresses

2. Background: Context of the loan agreement, relationship between parties, and purpose of the loan

3. Definitions: Definitions of key terms used throughout the agreement

4. Loan Amount and Purpose: Specification of the loan amount, currency, and permitted use of funds

5. Interest Rate and Calculation: Details of interest rate, calculation method, and payment frequency

6. Disbursement Terms: Conditions precedent and process for loan disbursement

7. Repayment Terms: Schedule of repayments, payment methods, and prepayment provisions

8. Security and Collateral: Description of assets provided as security and perfection requirements

9. Representations and Warranties: Statements of fact and assurances from the borrower

10. Covenants: Positive and negative obligations of the borrower during the loan term

11. Events of Default: Circumstances constituting default and consequences thereof

12. Taxes and Costs: Allocation of tax liabilities and transaction costs

13. Notices: Communication methods and contact details for formal notices

14. Governing Law and Jurisdiction: Specification of Indonesian law as governing law and jurisdiction for disputes

15. Execution: Signature blocks and execution requirements

What sections are optional to include in a Lending Loan Agreement?

1. Guarantor Provisions: Include when there is a third-party guarantor for the loan

2. Insurance Requirements: Include when specific insurance coverage is required for secured assets

3. Special Drawing Conditions: Include for staged disbursements or special conditions for drawings

4. Currency Provisions: Include for loans involving foreign currency or multiple currencies

5. Assignment and Transfer: Include when transfer rights are granted to either party

6. Force Majeure: Include when specific force majeure provisions are needed beyond standard provisions

7. Appointment of Agent: Include in syndicated loans or when an agent is appointed

8. Environmental Compliance: Include for business loans where environmental compliance is relevant

What schedules should be included in a Lending Loan Agreement?

1. Repayment Schedule: Detailed amortization table showing payment dates and amounts

2. Security Details: Detailed description and documentation of collateral assets

3. Conditions Precedent Checklist: List of documents and conditions required before disbursement

4. Form of Drawdown Notice: Template for requesting loan disbursements

5. Insurance Requirements: Detailed insurance specifications for secured assets

6. Permitted Security Interests: List of pre-approved security interests on borrower assets

7. Financial Covenants Calculations: Formulas and methods for calculating financial covenants

8. Form of Compliance Certificate: Template for periodic compliance certification

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Indonesia

Document Type

Finance Agreement

Cost

Free to use

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