Credit Agreement

A credit agreement is a legal contract between a lender and a borrower detailing the terms under which money is borrowed. It outlines important aspects like the loan amount, interest rate, repayment schedule, and any fees involved. The agreement specifies the rights and responsibilities of both parties, including what happens if the borrower fails to repay. Essentially, it serves to protect both the lender's investment and the borrower's obligations, ensuring clarity and legal backing for the transaction.