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What is a term loan agreement? What are its various clauses?
Term Loan agreement is a written contract between the borrowing company and lending bank or financial institution. This agreement stipulates various terms and conditions on which the relationship between the lending bank and borrowing company is regulated.
Following are the various clauses in term loan agreement:
1) Amount of loan
2) Period of payment
3) Rate of Interest
4) Method of payment of interest
5) Nature of security offered
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