Loan Agreement Term Sheet Template

1. Introduction
This Loan Agreement Term Sheet outlines the fundamental terms and conditions of the loan proposed between the Lender and the Borrower. It serves as a preliminary agreement that summarizes the main aspects of the loan to be formalized in a detailed loan agreement.

2. Parties Involved

• Lender: [Lender’s Full Legal Name], with its principal office located at [Lender’s Address].
• Borrower: [Borrower’s Full Legal Name], with its principal office located at [Borrower’s Address].

3. Loan Details

• Loan Amount: [Specify Amount]
• Currency: [Specify Currency, e.g., USD]
• Purpose: [Describe the purpose of the loan]
• Interest Rate: [Specify Rate, e.g., 5% per annum, fixed/floating]
• Interest Calculation: [Specify method, e.g., daily, monthly, annually]
• Repayment Term: [Specify Term, e.g., 5 years]
• Repayment Schedule: [Specify schedule, e.g., monthly, quarterly]
• Maturity Date: [Specify Date]

4. Fees and Charges

• Origination Fee: [Specify Amount or Percentage]
• Prepayment Penalty: [Specify Terms or None]
• Late Payment Fee: [Specify Amount or Percentage]
• Other Fees: [Detail any additional fees]

5. Security

• Collateral: [Specify Collateral, if any]
• Guarantee: [Specify any guarantees, if applicable]
• Insurance Requirements: [Specify requirements, if any]

6. Covenants

• Affirmative Covenants: [List affirmative covenants, e.g., maintaining financial statements]
• Negative Covenants: [List negative covenants, e.g., restrictions on additional debt]

7. Representations and Warranties

• Borrower Representations: [List borrower’s representations]
• Lender Representations: [List lender’s representations]

8. Events of Default

• Default Events: [List events of default, e.g., missed payments, insolvency]
• Remedies: [Specify remedies in the event of default]

9. Governing Law

• Jurisdiction: [Specify governing law and jurisdiction]

10. Confidentiality

• Confidentiality Obligations: [Specify confidentiality obligations of both parties]

11. Miscellaneous

• Amendments: [Specify terms for amendments]
• Notices: [Specify notice provisions]
• Dispute Resolution: [Specify dispute resolution process]

12. Execution
This Term Sheet is a non-binding document and will be replaced by a definitive loan agreement.

Signatures

• Lender: ________________________
• Borrower: ________________________

Date: [Specify Date]

Note: This Term Sheet is for informational purposes only and is subject to the final approval and execution of the formal Loan Agreement.