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Person To Person Loan Agreement for Singapore

Person To Person Loan Agreement Template for Singapore

A Person to Person Loan Agreement is a legally binding document used in Singapore that formalizes a lending arrangement between two individuals. The agreement outlines the loan amount, interest rate, repayment terms, and consequences of default, all while complying with Singapore's lending laws and regulations. This document provides protection for both the lender and borrower by clearly stating the terms and conditions of the loan, making it enforceable under Singapore law.

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Person To Person Loan Agreement

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What is a Person To Person Loan Agreement?

The Person To Person Loan Agreement is essential for documenting private lending arrangements between individuals in Singapore. This agreement is commonly used when family members, friends, or acquaintances enter into lending arrangements outside of traditional banking institutions. The document ensures compliance with Singapore's Moneylenders Act and Civil Law Act while protecting both parties' interests. It includes crucial details such as loan amount, interest rates (within legal limits), repayment schedule, default provisions, and any security arrangements. This formal documentation helps prevent future disputes and provides a clear framework for the lending relationship.

What sections should be included in a Person To Person Loan Agreement?

1. Parties: Identification and details of the lender and borrower

2. Background: Context of the loan arrangement and relationship between parties

3. Definitions: Key terms used throughout the agreement

4. Loan Amount and Purpose: Specific amount being borrowed and its intended use

5. Interest Rate: Agreed interest rate and calculation method

6. Repayment Terms: Schedule and method of repayment

7. Default Provisions: Consequences of failing to meet repayment obligations

8. Governing Law: Specification of Singapore law as governing law

What sections are optional to include in a Person To Person Loan Agreement?

1. Security: Details of any collateral or security provided for secured loans

2. Early Repayment: Terms and conditions for early loan repayment options

3. Assignment: Rights and conditions for assigning the loan to third parties

4. Insurance: Requirements for insurance coverage where applicable

What schedules should be included in a Person To Person Loan Agreement?

1. Repayment Schedule: Detailed schedule of payment dates and amounts

2. Security Details: Detailed description of any security/collateral provided

3. Proof of Identity: Copies of identification documents of both parties

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Singapore

Publisher

Ƶ

Document Type

Financing Agreement

Cost

Free to use
Relevant legal definitions





















Clauses






















Industries

Moneylenders Act (Chapter 188): Primary legislation regulating moneylending in Singapore. While mainly applicable to licensed moneylenders, personal loans must be structured to avoid classification as unlicensed moneylending. Personal loans between friends/family typically have exemptions but require proper documentation.

Civil Law Act (Chapter 43): Governs fundamental aspects of civil law including contractual capacity, requirements for written contracts, and provisions regarding interest rates. Essential for ensuring the loan agreement meets basic legal requirements.

Contract Law: Based on Singapore's Common Law system, covering essential elements of valid contract formation including offer, acceptance, consideration, and intention to create legal relations.

Stamps Act (Chapter 312): Specifies requirements for proper stamping of loan documents and applicable stamp duties that must be paid for the loan agreement to be legally enforceable.

Consumer Protection (Fair Trading) Act: While primarily focused on business-to-consumer transactions, provides important principles of fairness that should be considered in personal loan agreements.

Interest Rate Restrictions: Covers Singapore's regulations on maximum interest rates and usury laws to ensure the loan terms are legally compliant and not exploitative.

Limitation Act (Chapter 163): Establishes time limits for enforcement of contractual rights and statute of limitations for debt collection, crucial for understanding enforcement timeframes.

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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