Sample Agreement Format For Banking Facility
AGREEMENT FOR BANKING FACILITY FOR [company]
With reference to the meeting with Mr. __________, and Mr._____________ on dated 20TH Oct, (Date) regarding the Banking Facility for [company]. It was agreed as follow:
Scope of work:
[company] (Consultant) will provide consultancy services to make financing arrangements with one of the scheduled Bank for [company].
Target: Bank Guarantee up to Rs.10 to 15 Millions
Running Finance up to Rs. 10 to15 Millions
Total Limit Approval required: Rs. 25. To Rs. 30.0 Million with condition to having caution (60% of the market value ) in the property which he is offering
1. [company] will provide all required documents, and will provide on demand.
- [Name] will try to get minimum Bank mark up for both LG (0.3%PQ), and RF (6 month KIBOR+3% ).
3. [Name] will try to get the Financing Arrangement with in max. one, and half month
(45) days period with condition to provide all the relevant document, and the funds on time.
Consultancy payments:
1. [company] will pay 4% of the total approved Bank limit on Running Finance, and 4% on the Bank Guarantee value (Cash margin will be charged as per the policy of State Bank at that time).
2. [company] will make the payment for misc. expenses up to Rs. 150,000/- as, and when needed basis. Balance payments will be made from the approved RF through Bank.
- Partial payments of Rs. 150,000 will be adjusted from the balance payment.
4. [company] will not make any other payments to Bank, or any other concerned dept. [Name] will be responsible to deal will all concerned department’s until DAC issued by the Bank.
5. [company] has no right to back out after receiving the offer letter from the bank if he will do so then he will have to pay the agreed amount on his own source.
- In case Financing Arrangements are not approved by the scheduled Bank as agreed, [Name] will pay back (100%) payment to [company] with in 7 days without any notice.
Agreed, and Signed on 20th Oct, (Date)
Name 1: ______________________ Name 2:______________________
Witness: 1. ___________________ 2. ___________________________
