Loan Agreement Template for Singapore

A Loan Agreement is a binding contract where one party (the lender) agrees to provide money to another party (the borrower), who promises to repay it with interest under specific terms. In Singapore, these agreements must follow the Moneylenders Act and Banking Act requirements, especially regarding interest rates and repayment schedules.

Beyond just stating the loan amount, these agreements protect both sides by clearly spelling out payment deadlines, interest calculations, collateral details, and default consequences. They're essential for everything from business financing to property purchases, and must be properly stamped under Singapore's Stamp Duties Act to be legally enforceable.

Use a Loan Agreement any time you're lending or borrowing significant money in Singapore - from financing a new business venture to helping a family member buy property. The agreement becomes essential when the loan amount exceeds S$2,000, as verbal agreements become harder to enforce beyond this threshold.

For business loans, having a proper Loan Agreement in place helps secure funding from banks or investors, protects both parties' interests, and ensures compliance with MAS regulations. It's particularly important when dealing with multiple lenders, offering collateral, or setting up complex repayment structures with varying interest rates.

• Money Lending Contract: Standard commercial lending agreement used by licensed moneylenders, following strict MAS guidelines on interest rates and terms
• Loan Contract For Family: Simplified agreement for family loans, with flexible interest terms while maintaining legal enforceability
• Personal Loan Contract Between Friends: Informal yet legally binding agreement for personal lending between individuals
• Employee Loan Repayment Agreement: Specialized contract for employer-provided loans with salary deduction provisions
• Loan Repayment Agreement: Focuses on restructuring existing loan terms or consolidating multiple loans

• Licensed Banks and Financial Institutions: Primary lenders in Singapore, regulated by MAS, offering commercial and personal loans with standardized terms
• Licensed Moneylenders: Provide shorter-term loans under strict regulatory oversight, requiring specific documentation and interest rate caps
• Business Owners: Both as borrowers seeking capital and as lenders in B2B financing arrangements
• Private Individuals: Engage in personal lending with family or friends, needing proper documentation for tax and legal protection
• Legal Professionals: Draft and review Loan Agreements to ensure compliance with Singapore's lending laws and protect client interests

• Identify Parties: Gather full legal names, NRIC/registration numbers, and addresses of all lenders and borrowers
• Loan Details: Document the principal amount, interest rate, loan tenure, and repayment schedule
• Security Arrangements: List any collateral, guarantors, or specific assets being used as security
• Payment Terms: Specify payment methods, late payment penalties, and early repayment options
• Legal Requirements: Check MAS guidelines for interest rate caps and lending restrictions based on loan type
• Documentation: Collect proof of income, credit reports, and any required statutory declarations

• Party Details: Full legal names, addresses, and identification/registration numbers of lender and borrower
• Loan Terms: Principal amount, interest rate (within MAS guidelines), repayment schedule, and loan duration
• Security Provisions: Details of collateral, guarantees, or personal guarantors if applicable
• Default Clauses: Consequences of missed payments, acceleration provisions, and recovery procedures
• Governing Law: Explicit statement that Singapore law applies and local courts have jurisdiction
• Execution Block: Signature spaces, witness requirements, and company seal provisions if needed
• Stamp Duty: Acknowledgment of duty payment requirements under Stamp Duties Act

A Loan Agreement differs significantly from a Bond Issuance Agreement in several key ways, though both are financial instruments used to raise capital in Singapore. While a Loan Agreement creates a direct lending relationship, bonds represent a different type of debt structure with unique characteristics.

• Legal Structure: Loan Agreements create a direct lender-borrower relationship, while bonds involve multiple investors buying tradeable debt securities
• Transferability: Loans typically stay with the original lender, but bonds can be bought and sold on secondary markets
• Regulatory Framework: Loans fall under MAS lending guidelines, while bonds must comply with Securities and Futures Act requirements
• Documentation: Loan Agreements are simpler, focusing on repayment terms, while bond issuances require extensive disclosure and trustee arrangements
• Flexibility: Loan terms can be more easily modified through mutual agreement, whereas bond terms are typically fixed once issued