A short term loan contract is one that is entered into between two parties where one party obtains short term loan from the other party. The contract includes details of the short term loan such as amount involved, rate of interest repayment terms, repayment period etc as specified by the lender. A sample short term loan contract is provided here under for further reference.
Sample Short Term Loan Contract:
Short term loan contract number: No:44445555
Terms and Conditions Applicable for Short Term Loan :-
Name and Address:
Lender: Clemton group Co Ltd.
Address: Studio 5, Hare field Road, Brockley, London, UK.
Borrower: Bentleys Services company Ltd.
Address: No 25 Chancery Lane, Holborn, London, UK.
- Borrower applies for a loan of two million pounds, 200000000 £ to the lender.
- The loan term is one year from March 2, 2012 to march 2, 2013 as agreed in the contract dated March 2, 2012.
- The loan should be used only for operational purpose and without the consent of the lender the purpose of the loan should not be changed.
- The loan interest as per the contract shall be floating rates, which is subjected to change with respect to the benchmark rates.
- The interest shall be calculated from the date of fund transfer from the lender to borrower, and it should be settled as specified on monthly basis.
- Penalty interest shall be imposed on the borrower upon default.
- Borrower should pay the principal amount on mature date as stipulated in the contract.
Terms for termination of Contract :
- In the event of default by the borrower the short term loan contract is bound to be terminated with a penalty of 4% and seizure of the pledge property by the lender.
Hereby, both the parties will accept the Business Term loan Contract:
Signature of the Borrower:
Bentleys Services company Ltd
Signature of the Lender:
Clemton group Co Ltd