Simple loan agreement sample (Philippines)

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This Loan Agreement (“Agreement”) is made and entered into as of [DATE] by and between:

  • [Lender Name], residing at [Lender Address] (“Lender”), and
  • [Borrower Name], residing at [Borrower Address] (“Borrower”).

WHEREAS, Lender desires to lend a sum of money to Borrower, and Borrower desires to borrow such sum of money from Lender, all on the terms and conditions set forth herein.

NOW, THEREFORE, in consideration of the foregoing premises and the mutual covenants hereinafter set forth, the parties agree as follows:

  1. Loan Amount. Lender agrees to lend to Borrower, and Borrower agrees to borrow from Lender, the sum of [Peso Amount] (the “Loan Amount”).
  2. Interest Rate. The Loan Amount shall accrue interest at the rate of [Interest Rate]% per annum (the “Interest Rate”).
  3. Repayment Schedule. Borrower shall repay the Loan Amount, together with accrued interest, in [Number] equal monthly installments of [Peso Amount] each, commencing on [Date] and continuing on the same day of each succeeding month until the Loan Amount is fully paid (the “Repayment Schedule”).
  4. Late Payment. If any installment payment is not received by Lender within [Number] days after the due date, a late payment fee of [Peso Amount] shall be imposed.
  5. Use of Loan Proceeds. Borrower shall use the Loan Amount for the following purpose(s): [State purpose(s) of the loan]
  6. Default. Borrower shall be deemed in default of this Agreement upon the occurrence of any of the following events:
    • Failure to make any payment due hereunder when due and payable;
    • Breach of any other covenant or provision of this Agreement; or
    • Borrower becomes insolvent or files for bankruptcy.
  7. Remedies Upon Default. Upon the occurrence of a default, Lender shall have the right to pursue all remedies available to it at law or equity, including, but not limited to, the right to declare the entire outstanding balance of the Loan Amount immediately due and payable and to proceed against any collateral securing the loan (if applicable).
  8. Entire Agreement. This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior or contemporaneous communications, representations, or agreements, whether oral or written.
  9. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the Republic of the Philippines.
  10. Severability. If any provision of this Agreement is held to be invalid or unenforceable, such provision shall be struck and the remaining provisions shall remain in full force and effect.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.

Lender:

[Signature] [Printed Name]

Borrower:

[Signature] [Printed Name]

WITNESSES:

[Signature] [Printed Name] [Signature] [Printed Name]

Please note: This is a sample loan agreement and should not be considered a substitute for legal advice. It is recommended that you consult with a lawyer to ensure that your loan agreement is tailored to your specific needs and complies with all applicable Philippine laws.

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CashLoanPH Changed status to publish 31/03/2024