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Credit Facility Letter To Customer for Singapore

Credit Facility Letter To Customer Template for Singapore

A Credit Facility Letter is a formal document issued by a financial institution in Singapore to a customer, outlining the terms and conditions of an approved credit facility. The document complies with Singaporean banking regulations, including MAS guidelines and the Banking Act, and serves as a legally binding agreement between the lender and borrower. It details crucial information such as the facility amount, interest rates, tenure, security requirements, and other key terms governing the credit relationship.

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What is a Credit Facility Letter To Customer?

The Credit Facility Letter To Customer is a fundamental banking document used in Singapore when extending credit facilities to customers. It serves as the primary agreement documenting the credit relationship between a financial institution and its customer. The letter is drafted in compliance with Singaporean banking regulations and MAS guidelines, providing comprehensive details about the facility including amount, purpose, interest rates, tenure, security requirements, and conditions precedent. This document is essential for both parties as it clearly defines their rights and obligations, and forms the basis for the credit relationship.

What sections should be included in a Credit Facility Letter To Customer?

1. Bank Details: Full legal name and address of the lending institution

2. Customer Details: Full name, address, and identification details of the borrower

3. Facility Type and Amount: Description of the credit facility and maximum amount approved

4. Interest Rate: Applicable interest rates, including base rate and margin

5. Tenure: Duration of the facility and repayment terms

6. Security Requirements: Details of any collateral or security required

7. Key Terms and Conditions: Essential conditions for the facility

What sections are optional to include in a Credit Facility Letter To Customer?

1. Special Pricing Conditions: Any special interest rates or fee arrangements, used when offering promotional rates

2. Specific Purpose: If the facility is granted for a specific purpose, include when facility is purpose-specific

3. Additional Covenants: Special conditions or restrictions, included for high-risk or large facilities

What schedules should be included in a Credit Facility Letter To Customer?

1. Fee Schedule: Detailed breakdown of all applicable fees and charges

2. Repayment Schedule: Detailed payment schedule if applicable

3. Security Documents List: List of required security documents and supporting documentation

4. Standard Terms and Conditions: Bank's standard terms and conditions for credit facilities

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

Singapore

Document Type

Credit Agreement

Sector

Banking

Cost

Free to use

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