We find that firms with stronger management faultlines incur higher loan spreads when accessing bank loans. Utilizing the two-stage path analysis, we show that management faultlines increase the cost of bank loans through heightened default risk and information risk. Further, the adverse effect of management faultlines on the cost of bank loans is mitigated when a firm has strong corporate governance or borrow from a relationship lender, and the effect is more pronounced during the financial crisis period with credit tightening. We also find that firms with strong management faultlines are provided with higher all-in-spread-undrawn and are more likely to be required of collaterals. Overall, our study highlights the economic consequences of management faultlines on debt contracting with implications for corporate governance.