Names and addresses of the lender (the person or institution providing the loan) and the borrower (the person receiving the loan).
The total amount of money being borrowed.
The rate at which interest will be charged on the loan, expressed as a percentage.
The duration of the loan, specifying when the loan must be repaid in full.
Details on how and when the borrower will repay the loan, including due dates for payments (monthly, quarterly, etc.).
A description of what the borrower intends to do with the loan funds.
If applicable, any assets that the borrower pledges as security for the loan.
Situations that would constitute a default, such as missed payments, and the consequences of defaulting.
The jurisdiction whose laws will govern the agreement.
Signatures of both the lender and borrower, along with the date of signing, to make the agreement legally binding.
Fees and Charge
Any additional fees associated with the loan (late fees, origination fees, etc.).
Prepayment Terms
Conditions under which the borrower can pay off the loan early and any penalties or fees associated with that.
Amendment Clause
How the agreement can be modified in the future.
A loan agreement protects both parties by providing a clear understanding of the terms and conditions. It also offers legal recourse in the event of disputes or defaults. It is advisable for both lenders and borrowers to read the agreement carefully and consider legal counsel to ensure their rights and obligations are clearly stated.
Moxham Quinn is a unique firm that combines the expertise of accountancy and law. Our founders, one an accountant and the other a solicitor, have built a boutique practice with a strong presence in both United Kingdom and the United Arab Emirates.
Copyright © 2025 – Moxham Quinn. All Rights Reserved.