A facility credit agreement can be defined as a legal document related with a commercial loan by a lending institution to any corporate or business organization. The facility credit agreement is a detailed document which outlines all the regulations and terms associated with the loan contract and both the parties are required to agree on these terms and sign the contract. This agreement includes all the details, the principal sum involved, the rate of interest, and all the terms& conditions of this loan.

This facility credit loan can either be a revolving credit loan, committed facilities loan, term loan or the loan on the retail credit account. Once a borrower applies for the loan, and the lending institution like a bank accepts the request for loan, then they enter with the borrower in a legal relationships with all its terms mentioned in a contract.

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