6. Charges, commissions and costs

Other than the interests generated from the amount drawn, the lender may also charge different types of fees in relation to the loan. The types and amount of fees will invariably depend on how complex the loan is. For example, banks may charge a commitment fee for the portion of the facility that remains undrawn by the borrower and an arrangement fee for arranging the loan facility for the borrower.

It is common to incorporate provisions in loan agreements requiring the borrower to be responsible for the fees, costs and expenses of the lender, including legal fees and fees relating to amendments and waivers and enforcement.