Simple Loan Repayment Agreement Template for Indonesia

The Simple Loan Repayment Agreement is designed for use in Indonesia when parties need to formally document straightforward lending arrangements. This document type is commonly used for both personal and business loans where the terms are relatively straightforward and don't require complex security arrangements. The agreement complies with Indonesian Civil Code (KUHPerdata) requirements and OJK regulations, making it suitable for domestic lending transactions. It includes essential provisions such as loan amount, repayment terms, interest calculations, and default consequences, while maintaining flexibility to accommodate various lending scenarios. This document is particularly useful for SMEs, individual lenders, and businesses seeking to formalize lending arrangements within the Indonesian legal framework.

1. Parties: Identification of the Lender and Borrower with complete legal names and addresses

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

3. Definitions: Key terms used throughout the agreement

4. Loan Amount and Purpose: Specification of the loan amount, currency, and intended purpose

5. Repayment Terms: Details of repayment schedule, method of payment, and payment dates

6. Interest Rate: Specified interest rate and calculation method

7. Default and Consequences: Definition of events of default and resulting consequences

8. Representations and Warranties: Basic statements of fact and promises by the Borrower

9. Governing Law and Jurisdiction: Confirmation of Indonesian law application and jurisdiction

10. Notices: How formal communications between parties should be made

11. Execution: Signature blocks and execution requirements