Simple Loan Promissory Note for Singapore

Simple Loan Promissory Note Template for Singapore

A Simple Loan Promissory Note under Singapore law is a legally binding document that evidences a debt and contains a written promise by a borrower to repay a specific sum of money to a lender under defined terms. The document must comply with Singapore's Civil Law Act and, where applicable, the Moneylenders Act. It includes essential terms such as the loan amount, interest rate, repayment schedule, and consequences of default, while adhering to Singapore's strict requirements regarding interest rate caps and lending practices.

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What is a Simple Loan Promissory Note?

A Simple Loan Promissory Note is commonly used in Singapore when documenting straightforward lending arrangements between parties. This document is particularly useful for both commercial and personal loans where a formal but uncomplicated structure is needed. The promissory note, governed by Singapore law, serves as evidence of debt and includes key information such as loan amount, interest rate, payment terms, and maturity date. It provides a clear record of the borrower's promise to repay the loan and can be used for enforcement purposes if needed. The document must comply with Singapore's lending regulations, including the Civil Law Act and Moneylenders Act, particularly regarding interest rate restrictions and enforcement provisions.

What sections should be included in a Simple Loan Promissory Note?

1. Date: Date of execution of the promissory note

2. Parties: Identification of lender and borrower with full names and addresses

3. Promise to Pay: Clear statement of obligation to repay the loan amount

4. Principal Amount: Specification of the loan amount in numbers and words

5. Interest Rate: Specification of applicable interest rate and calculation method

6. Repayment Terms: Payment schedule and method of payment

7. Execution: Signature blocks and witnessing requirements

What sections are optional to include in a Simple Loan Promissory Note?

1. Security Provisions: Details of any collateral or security, included when loan is secured by assets or guarantees

2. Default Provisions: Consequences of default and remedies available to the lender

3. Prepayment Terms: Conditions and terms for early repayment of the loan

4. Late Payment Penalties: Additional charges and consequences for late payments

What schedules should be included in a Simple Loan Promissory Note?

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

2. Security Details: Detailed description of any collateral or security arrangements

3. Interest Calculation Methods: Detailed explanation of interest calculation methodology and examples

Authors

Alex Denne

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

Jurisdiction

Singapore

Publisher

Genie AI

Document Type

Loan Agreement

Sector

Banking

Cost

Free to use
Industries

Civil Law Act (Cap. 43): Primary legislation governing contractual obligations, enforcement, and provisions relating to interest rates and usury in Singapore

Moneylenders Act (Cap. 188): Regulates non-bank lending, including interest rate restrictions, loan terms, and licensing requirements for moneylenders

Banking Act (Cap. 19): Governs financial institutions' lending practices and regulatory compliance requirements

Contracts (Rights of Third Parties) Act: Legislation governing how third-party rights are handled in contractual agreements

Limitation Act (Cap. 163): Sets time limits for enforcement of contractual rights, generally 6 years for contractual claims

Consumer Protection (Fair Trading) Act: Protects consumer interests in financial transactions when borrower is an individual consumer

Personal Data Protection Act 2012: Regulates the collection, use, and disclosure of personal data in contractual agreements

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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