The Peer to Peer Loan Contract is designed for use in South Africa when individuals or entities wish to engage in direct lending without traditional financial intermediaries. This document is essential for formalizing private lending arrangements while ensuring compliance with the National Credit Act 34 of 2005, the Consumer Protection Act, and other relevant South African legislation. It should be used whenever a private lender extends credit to a borrower, whether for personal, business, or investment purposes. The contract includes crucial elements such as loan amount, interest rates (within prescribed maximums), repayment terms, security arrangements if applicable, and default provisions. It also incorporates mandatory consumer protection measures and disclosure requirements specific to South African credit law.

1. Parties: Identifies and provides full details of the Lender and Borrower, including legal names, identification numbers, and addresses for service

2. Background: Establishes the context of the loan agreement and the parties' intention to enter into a credit agreement

3. Definitions: Defines key terms used throughout the agreement to ensure clear interpretation

4. Loan Amount and Purpose: Specifies the principal amount being lent and the intended use of the loan funds

5. Interest Rate: Details the applicable interest rate, ensuring compliance with NCA maximum rates, and how interest is calculated

6. Repayment Terms: Specifies the repayment schedule, installment amounts, and payment methods

7. Duration of Agreement: States the term of the loan and any applicable fixed period

8. Rights and Obligations: Outlines the key responsibilities and rights of both the Lender and Borrower

9. Default and Remedies: Defines what constitutes default and the consequences thereof

10. Costs and Charges: Details all fees, charges, and costs associated with the loan

11. Notices: Specifies how formal communications between parties should be made

12. General Terms: Contains standard contractual provisions including governing law, jurisdiction, and whole agreement clause