Standard Loan Agreement Between Friends Template for Philippines

The Standard Loan Agreement Between Friends is designed for situations where individuals in the Philippines wish to formalize a personal lending arrangement while maintaining the informal nature of their relationship. This document is particularly useful when friends or family members want to ensure clear understanding and legal protection while lending money, without resorting to commercial lending institutions. It incorporates essential elements required under Philippine law, including provisions from the Civil Code of the Philippines and relevant financial regulations, while remaining accessible to non-legal professionals. The agreement can be used for various loan amounts and purposes, from small personal loans to more substantial financial arrangements, and includes optional provisions for collateral, witnesses, and early repayment terms. It's structured to protect both lender and borrower while preserving the friendly nature of the transaction.

1. Parties: Identifies and provides full details of the Lender and Borrower, including their complete names, addresses, and contact information

2. Background: Brief context explaining the friendly nature of the loan and the relationship between parties

3. Definitions: Defines key terms used throughout the agreement including 'Loan Amount', 'Interest Rate', 'Repayment Date', etc.

4. Loan Details: Specifies the principal amount being borrowed, purpose of the loan, and date of disbursement

5. Interest Rate: States the agreed interest rate (if any) and how it will be calculated

6. Repayment Terms: Details how and when the loan will be repaid, including payment schedule and method of payment

7. Default and Remedies: Explains what constitutes a default and the agreed-upon steps to resolve it

8. Representations and Warranties: Basic statements confirming parties' legal capacity to enter agreement and truthfulness of information provided

9. Notices: How formal communications between parties should be made and delivered

10. Governing Law: Confirms the agreement is governed by Philippine law

11. Signatures: Space for both parties to sign and date the agreement