A sample loan contract is a legal contract between the lender, and the borrower and the contract
regulates the terms of loan inclusive of amount, rate of interest, effective dates and instalments, etc.
Sample of Sample Loan Contract:
Loan Contract: LRT- 0056
Effective Date of the Loan Contract: October 7th, 2010
This loan contract or a promissory note is committed by and between John & Boyo Creditors Pvt. Ltd, herein after referred as the lender AND Mr. Jacky Swanson, hereinafter known as the borrower under the laws of Canada.
This contract is commencing on October 23rd, 2010 and is ending on October 23rd 2011.
Following mentioned are the promissory Articles as agreed by both the organizations:
(a) Loan Payment Terms:
As per commitment, the borrower is willing to take $10000 from the lender.
The lender will charge 3% as the rate of interest on the principal amount for a year. Monthly instalment is $ 345 which is to be paid to the lender.
(b) Lender Obligations:
The lender will provide the principal amount on time to the borrower. The lender will continue with the same rate of interest for a year.
(c) Borrower’s responsibility:
The borrower has to pay each month’s instalment in the first week with a committed amount. The borrower will receive the receipt on each payment submission.
The termination will take place if any of the parties in willing to terminate the contract. The interested party will pay 35% of the total amount to another party.
Both the parties are requested to sign the given section:
Signature of the lender:
Signature of the borrower:
Witness 1: Nina Timberlake
Witness 2: Jordon Simpson