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A Credit Agreement sets out the terms and conditions when one party lends money to another. In Singapore, these legally binding contracts spell out crucial details like interest rates, repayment schedules, and what happens if someone can't pay back the loan on time.

Under Singapore's Banking Act and Moneylenders Act, Credit Agreements protect both lenders and borrowers by clearly stating their rights and obligations. They're commonly used for business loans, mortgages, and personal financing, with specific requirements for different types of credit facilities. The agreement must include details about fees, charges, and any collateral securing the loan.

You need a Credit Agreement anytime you're lending or borrowing significant funds in Singapore. This applies when taking out business loans, mortgages, or setting up credit facilities with banks. It's essential for documenting loan terms before any money changes hands.

MAS-regulated banks must use Credit Agreements for loans above S$200,000. For smaller businesses, these agreements become crucial when expanding operations, purchasing equipment, or managing working capital. They're particularly important in high-value transactions, joint ventures, or when dealing with multiple lenders to establish clear repayment hierarchies and security interests.

• Credit And Security Agreement: Used for secured loans with collateral, common in property or asset financing
• Line Of Credit Agreement: Establishes revolving credit facilities where borrowers can draw funds repeatedly up to a limit
• Money Lending Agreement: For licensed moneylenders under Singapore's Moneylenders Act, with strict interest rate caps
• Employee Credit Card Agreement: Governs corporate card usage and employee liability
• Credit Support Agreement: Provides additional security through guarantees or third-party support

• Banks and Financial Institutions: Primary lenders who draft and issue Credit Agreements under MAS supervision
• Licensed Moneylenders: Regulated entities providing smaller loans under Singapore's Moneylenders Act
• Corporate Borrowers: Companies seeking business expansion loans, working capital, or asset financing
• Legal Counsel: Draft and review agreements to ensure compliance with Singapore banking regulations
• Company Directors: Sign and personally guarantee corporate Credit Agreements
• Individual Borrowers: Private persons taking housing loans or personal credit facilities
• Guarantors: Third parties providing additional security for the borrower's obligations

• Borrower Details: Gather full legal names, registration numbers, and addresses of all parties
• Loan Specifics: Document the principal amount, interest rate, and repayment schedule
• Security Information: List any collateral, guarantees, or other assets securing the loan
• Compliance Check: Review MAS guidelines and lending limits for your specific loan type
• Key Terms: Define events of default, prepayment rights, and late payment penalties
• Documentation: Collect supporting documents like financial statements and credit reports
• Template Selection: Use our platform to generate a customized Credit Agreement that meets Singapore's legal requirements
• Internal Review: Double-check all terms and conditions before finalizing

• Party Information: Full legal names, addresses, and registration numbers of lender and borrower
• Loan Details: Principal amount, interest rate, and payment terms clearly stated
• Security Provisions: Description of collateral or guarantees securing the loan
• Events of Default: Specific circumstances triggering loan acceleration or termination
• Representations: Borrower's warranties about financial condition and legal status
• Governing Law: Express choice of Singapore law and jurisdiction
• Execution Block: Proper signature spaces for all parties and witnesses
• Notice Requirements: Communication protocols and contact details
• Assignment Rights: Terms for transferring or selling the loan

A Credit Agreement differs significantly from an Intercreditor Agreement in both purpose and scope. While Credit Agreements establish the primary lending relationship between a lender and borrower, Intercreditor Agreements manage relationships between multiple lenders to the same borrower.

• Primary Function: Credit Agreements outline loan terms, repayment schedules, and borrower obligations. Intercreditor Agreements determine lender priorities and rights
• Timing of Use: Credit Agreements come first when establishing a loan. Intercreditor Agreements become necessary only when multiple lenders are involved
• Legal Structure: Credit Agreements create direct debt obligations. Intercreditor Agreements organize existing obligations between lenders
• Party Focus: Credit Agreements primarily bind lender and borrower. Intercreditor Agreements mainly affect relationships between different lenders
• Enforcement Rights: Credit Agreements specify default remedies. Intercreditor Agreements determine which lender can act first in enforcement