An Unsecured Loan Agreement suitable for individuals and businesses wishing to lend or borrow money with the added security of a 3rd party guaranteeing payments on the loan.
What is an Unsecured Loan Agreement?
A Loan Agreement is a contract entered into between a Lender and a Borrower, stipulating the terms and conditions of the loan. An unsecured Loan Agreement, also known as a personal loan, is where the loan is not backed by any form of collateral and the Lender has no entitlement to any of the Borrower's assets in the event of the Borrower failing to repay the loan.
Who should use this agreement?
This agreement is ideal for either individuals or businesses whereby money is being loaned to the Borrower and is to be paid back to the Lender in instalments, with or without interest.
Why have a Guarantor?
Where there is a Guarantor, a third party to the loan agreement (the Guarantor) will guarantee payment on behalf of the Borrower, agreeing to be held liable should the Borrower fail to repay the loan in terms of the agreement. This provides added security for the Lender in that he can proceed against the Guarantor in cases where he is not able to get payment from the Borrower.
This agreement contains the following clauses:
1. Definitions
2. Interpretation
3. Gurarantee
4. Loan
5. Indebtedness and Repayment
6. Acceleration
7. Notices
8. Breach
9. Governing Law and Jurisdiction
10. Counterparts
11. Signatories