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Promissory Loan Agreement Template for Malaysia

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Key Requirements PROMPT example:

Promissory Loan Agreement

"I need a Promissory Loan Agreement for a secured business loan of RM 500,000 with a 12-month term, starting March 1, 2025, where the borrower's manufacturing equipment will serve as collateral."

Document background
The Promissory Loan Agreement is a crucial legal instrument used in Malaysian financial transactions to document and formalize loan arrangements between parties. It is commonly used when there is a need to create a legally binding record of a loan transaction, whether for business financing, personal loans, or corporate borrowing. The document must comply with Malaysian financial regulations and banking laws, including the Contracts Act 1950, Interest Act 1953, and where applicable, the Money Lenders Act 1951. It typically includes essential details such as loan amount, interest rates, repayment terms, and security arrangements, while providing legal protection for both lender and borrower. This type of agreement is particularly important in Malaysia's business environment where formal documentation of financial obligations is required for legal enforcement and regulatory compliance.
Suggested Sections

1. Parties: Identification of the lender and borrower with complete details including names, registration numbers (if companies), and addresses

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

3. Definitions: Definitions of key terms used throughout the agreement

4. Loan Amount and Disbursement: Specification of the principal amount and how/when it will be disbursed

5. Interest Rate and Calculations: Details of the interest rate, calculation method, and payment frequency

6. Repayment Terms: Schedule of repayments, including principal and interest payment dates

7. Events of Default: Circumstances that constitute default and consequences thereof

8. Representations and Warranties: Statements of fact and assurances by the borrower

9. Covenants: Ongoing obligations of the borrower during the loan term

10. Notices: Methods and addresses for formal communications between parties

11. Governing Law and Jurisdiction: Specification of Malaysian law as governing law and jurisdiction for disputes

12. Execution: Signature blocks and execution requirements

Optional Sections

1. Security: Details of any collateral or security provided for the loan - include when loan is secured

2. Guarantee: Terms of any guarantee provided - include when there is a guarantor

3. Insurance: Requirements for insurance of any secured assets - include when there is collateral

4. Prepayment: Terms for early repayment of the loan - include when early repayment is allowed

5. Assignment: Rights to assign or transfer the loan - include when assignment rights are needed

6. Default Interest: Additional interest rates applicable on default - include when default interest is charged

7. Force Majeure: Provisions for unforeseen circumstances - include when needed for long-term loans

Suggested Schedules

1. Repayment Schedule: Detailed amortization table showing payment dates, principal and interest breakdowns

2. Security Details: Detailed description of any security or collateral provided

3. Conditions Precedent: List of conditions to be satisfied before loan disbursement

4. Form of Promissory Note: Template of the promissory note to be signed

5. Form of Notice: Standard forms for various notices under the agreement

6. Drawdown Request Form: Template for requesting loan disbursement

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

Relevant legal definitions






























Clauses




























Relevant Industries

Banking

Financial Services

Real Estate

Construction

Manufacturing

Small and Medium Enterprises

Agriculture

Technology

Retail

Professional Services

Healthcare

Education

Relevant Teams

Legal

Finance

Treasury

Compliance

Risk Management

Corporate Banking

Credit Administration

Company Secretarial

Business Development

Corporate Affairs

Relevant Roles

Chief Financial Officer

Finance Director

Legal Counsel

Corporate Lawyer

Finance Manager

Credit Manager

Risk Manager

Compliance Officer

Company Secretary

Treasury Manager

Loan Officer

Financial Controller

Business Development Manager

Account Manager

Corporate Banking Manager

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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