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Rollover Loan Agreement for India

Rollover Loan Agreement Template for India

This is a comprehensive loan agreement governed by Indian law that enables a borrower to roll over (extend) their loan facility for additional periods, subject to specified conditions and terms. The agreement incorporates RBI guidelines on interest rates and lending practices, includes detailed provisions for the rollover mechanism, interest calculations, and compliance requirements. It addresses key aspects such as conditions precedent for rollover, events of default, representations and warranties, and covenants, while ensuring compliance with Indian banking regulations and financial services laws.

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Rollover Loan Agreement

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What is a Rollover Loan Agreement?

The Rollover Loan Agreement is a specialized financing document used in the Indian market when parties wish to establish a loan facility that can be extended or "rolled over" for additional periods without executing a new agreement. This document is particularly useful for businesses requiring flexible financing arrangements where the loan can be continually renewed upon maturity. The agreement must comply with Indian banking regulations, RBI guidelines, and the Indian Contract Act, incorporating mandatory provisions on interest rate calculations, security creation (if applicable), and statutory compliance requirements. It's commonly used in corporate financing, project financing, and working capital arrangements, providing a structured framework for both lender and borrower to manage ongoing credit facilities while maintaining regulatory compliance.

What sections should be included in a Rollover Loan Agreement?

1. Parties: Identification of the lender and borrower with complete details

2. Background: Context of the loan arrangement and relationship between parties

3. Definitions: Key terms used throughout the agreement including 'Rollover Period', 'Interest Rate', etc.

4. Facility Details: Loan amount, purpose, and basic terms of the facility

5. Rollover Mechanism: Specific terms and conditions for rolling over the loan, including notice requirements and conditions precedent

6. Interest and Fees: Interest rate calculation, payment dates, and applicable fees

7. Repayment Terms: Repayment schedule, prepayment provisions, and payment mechanics

8. Conditions Precedent: Conditions that must be satisfied before drawdown

9. Representations and Warranties: Standard declarations by the borrower about their legal and financial status

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

11. Events of Default: Circumstances constituting default and consequences

12. Boilerplate Provisions: Standard clauses including notices, amendments, governing law, etc.

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

1. Security: Details of any security/collateral provided - include if loan is secured

2. Guarantee: Terms of any guarantee provided - include if there are guarantors

3. Insurance: Insurance requirements for secured assets - include if security is provided

4. Special Drawdown Conditions: Specific conditions for subsequent drawdowns - include for complex facilities

5. Tax Provisions: Detailed tax implications and withholding requirements - include if cross-border elements exist

6. Financial Covenants: Specific financial ratios and requirements - include for corporate borrowers

7. Change of Control: Provisions dealing with ownership changes - include for corporate borrowers

8. Assignment and Transfer: Terms for transferring the loan - include if transferability is contemplated

What schedules should be included in a Rollover Loan Agreement?

1. Facility Terms: Detailed terms of the loan including amounts, interest rates, and fees

2. Repayment Schedule: Detailed amortization schedule and payment dates

3. Conditions Precedent Documents: List of required documents and conditions

4. Form of Rollover Notice: Standard form for requesting loan rollover

5. Form of Drawdown Notice: Standard form for requesting drawdown

6. Security Details: Detailed description of security/collateral if applicable

7. Interest Calculation Examples: Examples showing interest calculation methodology

8. Compliance Certificate: Standard form 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 | Serial Founder & Legal AI Author

Jurisdiction

India

Document Type

Loan Agreement

Sector

Banking

Cost

Free to use
Relevant legal definitions


















































Clauses







































Relevant Industries

Banking

Financial Services

Manufacturing

Real Estate

Infrastructure

Retail

Technology

Healthcare

Energy

Agriculture

Telecommunications

Transportation

Construction

Mining

Relevant Teams

Legal

Finance

Treasury

Compliance

Risk Management

Credit

Corporate Banking

Operations

Company Secretarial

Documentation

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Corporate Banker

Relationship Manager

Credit Risk Manager

Legal Counsel

Compliance Officer

Financial Controller

Credit Analyst

Loan Officer

Corporate Finance Manager

Banking Operations Manager

Risk Management Officer

Company Secretary

Industries










Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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