A simple loan contract is an contract which is made when an amount of loan is borrowed for a simple reason. This contract mentions all the terms and conditions agreed by the parties.
Sample Simple Loan contract:
This contract is made and executed between Ms. Viola Perkins hereby known as the OBLIGOR and Mr. David Seed hereby known as the OBLIGEE.
Date: 22’Th October, 2010
Location: rivers dale apartment, H-3, London 456TF
The obligee resides at 3-4H, new Park Avenue, London since the last 10 years and can be reached at the contact number: 428792730702
The obligor is a resident of 12, mud hill villa, London and owns a property lease business and can be reached at the contact number: 456789012345
Loan amount: $500
Loan purpose: To purchase a motorbike
Method of repayment: monthly installments
Rate of interest: 9% per annum
Effective date of contract: 2’nd November, 2010
Both the parties must sign the agreement only if they agree to the following:
- The lender/obligor is not obliged to monitor how any part of the amount is being used under this contract.
- The loan amount along with the interest must be paid on time that is the first week every month.
- The late fee will be a sum of $100 in case the payment is not done within the week assigned.
- Without any obligation upon the lender to do so, the borrower will be allowed to get an extended time from the lender but without effecting the terms of this contract.
- The borrower and the lender shall not assign or transfer any of their rights under this contract.
Viola Perkins David Seed