Legal Question in Banking Law in India

I want to know the difference between Home Loan Agreement and Facility Agreement as bank had taken signatures in Home Loan Agreement and later at the time of disbursal talen signatures in Facility Agreement, as the bank had financed the Builders project. Pls guide me legally


Asked on 6/28/16, 9:42 am

2 Answers from Attorneys
Fca Prashant Chavan Expert Edge LLP

28.06.2016

Dear Sir / Madam,

There is no difference between the two. It is just a matter of terminology.

Regards,

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Answered on 6/28/16, 9:51 am

1) There are many types of loan agreements, including "facilities agreements," "revolvers," "term loans," "working capital loans."

2) A loan agreement is a 'contract' entered into between the borrower and the lender (banks and financial institutions) that regulates the terms of a loan. The loan agreement comes into picture immediately after the bank appraises your credit and the property that you have identified.

2)The Facility agreement is an agreement letter in which a lender (usually a bank or other financial institution) sets out the terms and conditions (including the conditions precedent ) on which it is prepared to make a loan facility available to a borrower. The loan facility is typically a term loan , revolving facility or overdraft or reverse mortgage .

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Answered on 6/28/16, 10:17 am


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