Document background
The Memorandum of Understanding (MOU) for Loan is commonly used in the Philippines as a preliminary step in loan transactions, particularly when parties need to establish basic terms before proceeding with a full loan agreement. This document type is especially relevant when parties want to document their initial understanding while maintaining flexibility for future negotiations. The MOU captures fundamental aspects of the loan arrangement including amount, purpose, interest rate, and repayment terms, while ensuring compliance with Philippine banking regulations and civil law requirements. It serves as a bridge between initial discussions and a formal loan agreement, providing a structured framework for the proposed transaction while allowing for modifications as needed. This document is particularly useful in both corporate and individual lending scenarios, where parties need to document their intentions and basic terms before committing to a full loan agreement.
