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Loan Referral Agreement Template for Singapore

A Loan Referral Agreement under Singapore law establishes the terms and conditions for referring potential borrowers to financial institutions. It complies with MAS regulations and the Banking Act, covering commission structures, data protection requirements, and compliance obligations. The agreement includes specific provisions for Singapore's unique regulatory environment, including fair dealing principles and anti-money laundering requirements.

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What is a Loan Referral Agreement?

The Loan Referral Agreement is essential for businesses operating in Singapore's financial services sector who wish to establish formal referral relationships for loan products. This document ensures compliance with Singapore's strict financial regulations, including MAS guidelines and the Banking Act. It details the responsibilities of referrers, commission structures, compliance requirements, and data protection obligations. The agreement is particularly important given Singapore's position as a major financial hub and its comprehensive regulatory framework for financial services.

What sections should be included in a Loan Referral Agreement?

1. Parties: Identification of the referrer and the financial institution

2. Background: Context of the agreement and relationship between parties

3. Definitions: Key terms used tHRoughout the agreement including regulatory references

4. Scope of Services: Details of referral services to be provided and any limitations

5. Compensation Structure: Terms of payment, commission arrangements and payment schedules

6. Compliance Requirements: Regulatory obligations, compliance procedures and reporting requirements

7. Representations and Warranties: Standard and specific warranties relating to referral services

8. Confidentiality: Protection of confidential information and data privacy obligations

9. Term and Termination: Duration of agreement and circumstances for termination

10. General Provisions: Standard boilerplate clauses including governing law and jurisdiction

What sections are optional to include in a Loan Referral Agreement?

1. Training Requirements: Specific training obligations for referrer personnel when dealing with complex financial products

2. Marketing Guidelines: Rules and restrictions for marketing and promotion of referral services

3. Territory Restrictions: Geographic limitations and territorial scope of referral activities

4. Non-Competition: Restrictions on competing activities during and after the agreement term

5. Insurance Requirements: Specific insurance coverage requirements for referral activities

What schedules should be included in a Loan Referral Agreement?

1. Schedule 1 - Commission Structure: Detailed breakdown of commission rates, tiers and calculation methods

2. Schedule 2 - Compliance Checklist: List of regulatory requirements and compliance procedures to be followed

3. Schedule 3 - Referral Process Flow: Step-by-step process for making and tracking referrals

4. Schedule 4 - Required Forms: Standard forms and templates for referral documentation

5. Schedule 5 - Data Protection Requirements: Specific obligations under PDPA and data handling procedures

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Singapore

Publisher

Ƶ

Document Type

Referral Agreement

Sector

Sales

Cost

Free to use

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