Extract data from loan agreements

A commercial loan agreement governs every dollar a lender puts at risk, and the terms that matter sit inside dense clause language rather than a tidy summary box. A regional bank might service 1,800 active facilities at once: a $250,000 equipment term loan to a Cleveland machine shop, a $12,000,000 revolving credit facility for a Series B software company, an SBA 7(a) loan carrying a partial federal guarantee, and a syndicated tranche where the lead arranger holds 40% and four participants split the rest. Credit risk, treasury, and loan operations all need the same fields on demand: borrower and lender legal names, principal amount, interest rate and whether it is fixed or tied to SOFR plus a margin, origination date, maturity date, amortization schedule, prepayment penalties, and the financial covenants the borrower agreed to maintain. What makes this hard is that the operative numbers are conditional. Interest is rarely a single figure. A facility might price at SOFR plus 325 basis points with a 1.00% floor, stepping down to 275 basis points once the debt-to-EBITDA ratio drops below 3.0x. Covenants reference defined tests, a minimum fixed-charge coverage ratio of 1.20x tested quarterly, that only make sense next to their definitions. Collateral descriptions point to security agreements and UCC-1 filings held as separate documents. Events of default, cure periods, and cross-default triggers each carry their own notice mechanics. Talonic captures the structured loan metadata while keeping the operative clause text verbatim. Parties are tagged by role: borrower, lender, guarantor, agent. Principal, rate, and maturity surface as discrete fields when the agreement states them cleanly, and covenant and default language is retained as clause excerpts so credit officers read the source rather than a parsed approximation. A $250,000 term facility booked on 2026-03-15 and maturing 2031-03-15 is repaid by ACH, reported by a US lender under US GAAP, and tracked in the bank's ERP against the IRS basis.

What gets extracted from loan agreements

How extraction works for loan agreements

Loan agreements arrive from core banking systems, origination platforms such as nCino, and counsel as executed PDFs, and no two lenders paper a facility the same way. Talonic classifies the agreement (term loan, revolver, mortgage, SBA, syndicated) and runs it through the contract schema in the Field Registry, which captures parties, principal, pricing, maturity, covenants, and default structure without per-lender templates. Defined Terms such as Applicable Margin or Fixed Charge Coverage Ratio are resolved against their definitions so extracted values reflect the agreement's intended meaning. Interest pricing is parsed into a base rate, a margin in basis points, and any floor. Every extracted clause is anchored to its location in the source PDF with pixel-region provenance for audit review under DIN SPEC 91491 conformity, so credit and treasury can verify any term against the executed document before booking the facility.

Sample extraction

A 22-page commercial term loan agreement with a covenant schedule

{
  "contract_title": "Term Loan and Security Agreement",
  "contract_type": "loan",
  "parties": [
    {
      "name": "Cleveland Precision Machining LLC",
      "role": "borrower"
    },
    {
      "name": "Midwest Regional Bank, N.A.",
      "role": "lender"
    }
  ],
  "principal_amount": "$250,000",
  "currency": "USD",
  "interest_base_rate": "SOFR",
  "interest_margin_bps": 325,
  "interest_floor": "1.00%",
  "origination_date": "2026-03-15",
  "maturity_date": "2031-03-15",
  "prepayment_penalty": "2% year 1, 1% year 2",
  "financial_covenants": "Minimum FCCR 1.20x tested quarterly",
  "governing_law": "State of Ohio"
}

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