Sample Agreement Letter for Banking Facility for Company

Sample Agreement Letter for Banking Facility for Company

[It is a Sample Agreement Letter for Banking Facility for Company. You should follow Banks rules and regulation regarding Banking Facility. You can modify these formats as your requirement.]

 

With reference to the meeting with Mr. xyz and Mr. abc on dated (dd/mm/yy) 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 (Money amount) to (Money amount) Millions.

Running Finance up to (Money amount) Millions.

Total Limit Approval required: (Money amount) To (Money amount) Million with the 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.

2. [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 within max. one and a half month

(45) days period with the 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.

3. 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 departments 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.

6. In case Financing Arrangements are not approved by the scheduled Bank as agreed, [Name] will pay back (100%) payment to [company] within 7 days without any notice.

Agreed and Signed on (Date)

Name 1: … …

Name 2: … …

Witness: 1 …….

Witness: 2…….