A long term loan contract is a contract signed between two parties namely the lender and borrower through which the long term loan is obtained. The lender agrees to provide long term loan to the borrower. The contract shall include details about the loan such as total loan amount, rate of interest, repayment terms, repayment period etc as specified by the lender and agreed upon by the borrower. An example of long term loan contract is given here under for better understanding.
Sample Long Term Loan Contract
Long term loan contract: No: 23461897
Terms of Contract :-
Particulars of parties to the contract:
Lender: Birmingham shipping Co Ltd.
Address: Tower 24, Wimpole Street, West Central, London, UK.
Borrower: Warley’s transport Ltd.
Address: No 25 Old Gloucester Street, Holborn, London, UK.
- Lender agrees to provide the borrower a loan amount of Three Million pounds, 300000000 £.
- The term period of the loan is 2 years, from September 2nd, 2003 to September 5th, 2005 as per the contract dated August 28th, 2003.
- The loan interest as per the contract shall be fixed at 7% per annum. The interest shall be calculated from the date of fund transfer to borrower, and it should be paid on a monthly basis without fail.
- Borrower can make prepayment prior to expiration of the loan, but the interest is not subjected to change upon prepayment.
- In the event that Borrower violates any terms of the contract, Lender has the right to stop providing funds and to demand repayment of the principal and interest of the funds already provided with immediate effect.
- The principal should be paid in two instalments, which means 150000000 £ at the end of 2004, and 150000000 £ at the end of 2005.
Hereby, both the parties agree to the terms specified above.
Signature of the Borrower:
Signature of the Lender: