Australian Loan Agreement Drafting

Provide the lender and borrower identities, borrowing purpose, loan amount, currency and drawdown instructions. Include the agreed interest method, payment schedule, maturity date and any proposed security or guarantee. Related-party relationships and the governing jurisdiction are important context for reviewing the proposed arrangement.

Do not assume the same draft suits both. Explain who is borrowing, how the funds will be used and whether credit-related regulation may apply. The commercial terms can be organised from those facts, but consumer-credit and licensing questions need assessment before a proposed loan is treated as ready to sign.

Drafting does not itself complete a security registration or establish that a guarantee is suitable. Identify the proposed collateral, ownership, existing charges and guarantors. A legal practitioner can review the security documents, approvals, registration steps and signing process needed for the particular loan.

Check how interest accrues, when repayments fall due, whether early repayment is permitted, and what happens after a missed payment. Confirm notice and cure periods, enforcement instructions and the interaction with security. Test the written schedule against the agreed figures and obtain legal review of the proposed remedies.