A loan agreement between a borrower and a single lender (as opposed to a syndicated loan agreement where there are multiple lenders).

In some financing transactions the borrower may have two or more bilateral loan agreements, each with a different lender. All the bilateral loan agreements will have substantially the same terms and conditions. Together they comprise an aggregate financing package for the borrower. Rather than having one large loan facility with multiple lenders and a single agent bank that administers the loan on behalf of the lenders (as in a syndicated loan), each bilateral lender will administer its own loan.