Loan Agreement

This Loan Agreement (“Agreement”) is made and entered into by and between:

Lender: [Lender’s Full Name]
Borrower: [Borrower’s Full Name]
Effective Date: [Date]

Both parties agree to the following terms:

Loan Amount and Disbursement
1.1. The Lender agrees to loan the Borrower the sum of $[Amount] (the “Loan”).
1.2. The Loan amount will be disbursed via [Payment Method, e.g., Bank Transfer] to the Borrower within [Timeframe, e.g., 3 business days] after the Agreement is signed.

Repayment Terms
2.1. The Borrower shall repay the Loan in [Number of Payments] installments of $[Installment Amount] each.
2.2. The first payment shall be due on [Date], with subsequent payments due every [Time Period, e.g., month] thereafter.
2.3. Payments shall be made via [Payment Method, e.g., direct debit, app transfer].

Interest Rate
3.1. The Loan shall accrue interest at an annual rate of [Interest Rate]% starting from the disbursement date.
3.2. Total interest payable shall be calculated as [Formula for Calculation].

Late Payments
4.1. If the Borrower fails to make any payment by the due date, a late payment fee of $[Amount or Percentage] shall apply.
4.2. Late payments will accrue additional interest at a penalty rate of [Penalty Rate]% per annum.

Prepayment
5.1. The Borrower may prepay the Loan in whole or in part at any time without penalty.
5.2. Any prepayment will first be applied to outstanding interest and fees, with the remainder applied to the principal balance.

Default
6.1. The Borrower will be considered in default if:
a) A payment is more than [Number of Days] days late.
b) The Borrower becomes insolvent or declares bankruptcy.
6.2. In the event of default, the full Loan balance, including accrued interest and fees, shall become immediately due and payable.

Confidentiality
7.1. Both parties agree to keep the terms of this Agreement confidential, except as required by law.

Governing Law
8.1. This Agreement shall be governed by the laws of the [State/Country]. Any disputes arising shall be resolved in the courts of [State/Country].

Electronic Agreement
9.1. This Agreement may be signed electronically and shall be legally binding upon both parties.

Signatures
Lender:
Name: ________________________
Signature: ____________________
Date: _________________________

Borrower:
Name: ________________________
Signature: ____________________
Date: _________________________