The Lender (__________) agrees to lend __________ (Loan Amount) to the Borrower (__________) under these terms. The Borrower acknowledges the loan amount defined above.
II. PAYMENT PLAN
The payment due date is every 15th of the month. Payments will be made via __________ (Payment Method).
The first payment will be on __________ (Start Date) and continue monthly until the last payment which is on __________ (End Date).
III. PROMISE TO PAY
The Borrower promises to pay the Lender __________ (Loan Amount) and interest within __________ months.
IV. LATE CHARGES
Late charges of 5% will be applied for any late payments. 5 days from the due date will be considered as late.
The following instances indicates default of this Loan Agreement, which means the remaining balance should be paid immediately:
(a) If the Borrower fails to pay in due date;
(b) Borrower's inability to pay debts;
(c) The Borrower is dead or incompetent;
(d) The Borrower is filing bankruptcy;
VI. SECURITY / COLLATERAL
For security and protection of the Lender, the Borrower gives the following security interest or mortgage:
This loan agreement can only be changed or modified through written consent of both parties.
VIII. GOVERNING LAWS
This agreement shall be governed under the laws of the __________ (Country).
This Loan Agreement is not transferable. A written content of both parties is needed in order to transfer this Agreement.