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 details:

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:

  1. The lender/obligor is not obliged to monitor how any part of the amount is being used under this contract.
  2. The loan amount along with the interest must be paid on time that is the first week every month.
  3. The late fee will be a sum of $100 in case the payment is not done within the week assigned.
  4. 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.
  5. The borrower and the lender shall not assign or transfer any of their rights under this contract.

Signatures:

Viola Perkins         David Seed

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