Document background
The Available Amount Credit Agreement is a crucial financing instrument in the Indian market, commonly used when businesses require flexible access to credit up to a predetermined limit. This agreement type is particularly valuable for companies with varying capital needs, such as working capital requirements or project financing. The document structure follows Indian banking practices and complies with RBI guidelines, while incorporating necessary provisions under various Indian financial and banking regulations. It's designed to provide clear mechanisms for drawdown, repayment, and ongoing facility management, while protecting both lender and borrower interests through appropriate covenants and conditions. The agreement typically includes comprehensive provisions for security (if applicable), events of default, and enforcement mechanisms in accordance with Indian law.
