A loan repayment contract is used as the official evidence between borrower and money lender, highlighting the loan repayment terms and conditions like the amount for monthly instalment, date on which monthly instalment should be paid, and after effects of not paying monthly instalment on time. This type of contract includes the details of the borrower and the lender, specifications and commitment clauses of the loan and its repayment.
Sample loan repayment contract:
Loan repayment contract Number: 12/ SC
This loan repayment contract is entered between Mr. Derek K Scott, hereinafter known as the lender, AND, Mr. Doris B Jean, hereinafter referred as the borrower.
Permanent address details of the parties:
- The Borrower
Address: #296 Dragram, CA, USA
Phone: 876 564 4368
- The Lender
Address: 6th avenue, Mane Street, CA, USA
Phone: 898 564 4532
This contract is commencing on December 10th, 2011 and is ending on December 10th, 2011.
Hereby, to obey the loan repayment contract, following mentioned are the conditions:
Borrower has received an amount of $ 12,000 from the Lender as personal loan, with an interest rate of 12% per year.
- Obligations & Responsibilities:
The Lender will receive $800 per month as the monthly instalment as loan repayment on the 10th of every month. Borrower will have to pay these instalments until the principal amount and applied interest are fully paid back.
Hence, Both the parties are requested to validate the contract:
Signature of the Lender:
Mr. Derek K Scott
Singed by the Borrower:
Mr. Doris B Jean
Signature of the Witness: