Document background
A Business Loan Term Sheet is a crucial preliminary document used in Malaysian commercial lending transactions to establish the fundamental terms of a proposed loan facility. It serves as a roadmap for the final loan agreement and is typically issued after initial credit approval but before detailed documentation begins. The document encompasses key commercial and legal terms including facility amount, purpose, interest rates, fees, security structure, and major covenants, all aligned with Malaysian banking regulations and Bank Negara Malaysia guidelines. While generally non-binding except for certain provisions like confidentiality and exclusivity, it forms the basis for negotiating and preparing the final loan documentation.
