Simple Loan Agreement

SIMPLE LOAN AGREEMENT

THIS LOAN AGREEMENT ("Agreement" ) is made on this ____ day of __________ 20____.

BETWEEN

1. [FULL NAME OF LENDER] , of ________________________________ (the "Lender" );

AND

2. [FULL NAME OF BORROWER] , of ____________________________ (the "Borrower" ).

The Lender and the Borrower are collectively referred to as the “ Parties ” and individually as a “ Party. ”

BACKGROUND

WHEREAS:

1. The Lender has agreed to lend money to the Borrower.

2. The Borrower wishes to borrow that money on the terms set out in this Agreement.

IT IS AGREED as follows:

1. LOAN

1.%2. The Lender agrees to lend the Borrower the sum of GHS ____________________________ (the "Loan Amount" ).

2.%2. The Loan Amount shall be paid to the Borrower on:

Date: _______________________

by:

☐ Bank Transfer

☐ Mobile Money

☐ Cash

☐ Other: _______________________

3.%2. The Loan Amount shall be advanced as:

☐ A single lump sum; or

☐ One or more instalments as agreed by the Parties.

2. PURPOSE OF THE LOAN

1.%2. The l oan is made for the following purpose ( if any ):

2.%2. Unless otherwise agreed in writing, the Borrower shall use the Loan Amount substantially for the purpose stated above.

3. INTEREST

Please select the applicable option:

☐ Interest-Free Loan

No interest shall be payable on the Loan Amount.

OR

☐ Interest-Bearing Loan

Interest shall accrue on the outstanding Loan Amount at the rate of:

______ % per annum

from the date the Loan Amount is advanced until it has been repaid in full.

4. REPAYMENT

1.%2. The Borrower shall repay the Loan Amount as follows:

☐ Lump sum payment of

GHS __________________________

on or before [ insert date]

OR

☐ By instalments as follows:

(Attach additional pages if necessary.)

2.%2. All payments shall be made by:

☐ Bank Transfer

☐ Mobile Money

☐ Cash

☐ Other: _______________________

Payment D etails:

____________________________________________________________________ ____

3.%2. The Borrower shall not withhold payment of any undisputed amount due under this Agreement.

4.%2. Where the Borrower disputes the amount claimed by the Lender, the Parties shall endeavour to resolve the matter in good faith.

5. EARLY REPAYMENT

The Borrower may repay all or part of the Loan Amount before the due date , unless the Parties agree otherwise in writing.

6. BORROWER'S OBLIGATIONS

The Borrower shall:

%2. Repay the Loan Amount in accordance with this Agreement;

%2. Promptly notify the Lender of any circumstance that may materially affect the Borrower's ability to repay the Loan Amount ;

%2. Use the Loan Amount substantially for

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