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Hard Money Loan Agreement for Singapore

Hard Money Loan Agreement Template for Singapore

A Hard Money Loan Agreement under Singapore law is a specialized lending document that facilitates short-term, asset-backed financing. The agreement complies with Singapore's Moneylenders Act and related regulations, offering higher interest rates than traditional loans while providing robust security mechanisms. It details loan terms, collateral requirements, repayment schedules, and enforcement provisions, specifically structured to meet Singapore's strict lending requirements and borrower protection standards.

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Hard Money Loan Agreement

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What is a Hard Money Loan Agreement?

The Hard Money Loan Agreement serves as a legally binding document for short-term, asset-backed financing in Singapore. This agreement is particularly useful for situations requiring quick funding where traditional banking options may not be suitable, such as property development, renovation projects, or business expansion. The document must comply with Singapore's Moneylenders Act and related regulations, including interest rate caps and borrower protection measures. It typically includes comprehensive details about loan terms, collateral requirements, interest calculations, repayment schedules, and enforcement mechanisms, while ensuring adherence to Singapore's strict lending requirements.

What sections should be included in a Hard Money Loan Agreement?

1. Parties: Identification and details of the lender and borrower

2. Background: Context of the loan arrangement and purpose

3. Definitions: Key terms used throughout the agreement

4. Loan Amount and Purpose: Specification of loan amount and intended use

5. Interest Rate and Calculations: Interest rate, calculation method, and payment schedule

6. Security and Collateral: Details of assets securing the loan

7. Repayment Terms: Schedule and methods of repayment

8. Events of Default: Circumstances constituting default and consequences

9. Representations and Warranties: Statements of fact by borrower and lender

What sections are optional to include in a Hard Money Loan Agreement?

1. Insurance Requirements: Required insurance coverage for collateral - use when specific insurance is required for secured assets

2. Prepayment Provisions: Terms for early loan repayment - use when early repayment options are offered

3. Guarantor Provisions: Terms applying to any guarantors - use when a guarantor is involved in the loan

What schedules should be included in a Hard Money Loan Agreement?

1. Schedule 1 - Payment Schedule: Detailed repayment schedule with dates and amounts

2. Schedule 2 - Collateral Description: Detailed description of security/collateral assets

3. Schedule 3 - Insurance Requirements: Specific insurance requirements for secured assets

4. Appendix A - Property Documentation: Relevant property documents if real estate is involved

5. Appendix B - Valuation Reports: Professional valuations of collateral assets

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Singapore

Document Type

Loan Agreement

Sector

Banking

Cost

Free to use
Relevant legal definitions


































Clauses






























Industries

Moneylenders Act: Primary legislation governing money lending activities in Singapore (Chapter 188). Covers licensing requirements, interest rate caps, and operational regulations for money lenders.

Moneylenders Rules: Subsidiary legislation providing detailed requirements for money lending operations, including documentation and conduct requirements.

Banking Act: Chapter 19 of Singapore laws - Regulates banking institutions and certain financial activities that may overlap with money lending.

Civil Law Act: Chapter 43 of Singapore laws - Provides fundamental principles for civil matters including contract law and property rights.

Contracts Act: Chapter 53 of Singapore laws - Governs the formation and enforcement of contracts, essential for loan agreement validity.

Moneylenders AML/CFT Rules: Rules specifically addressing Anti-Money Laundering and Countering the Financing of Terrorism requirements for money lenders.

Consumer Protection (Fair Trading) Act: Ensures fair trading practices and protects borrower rights in financial transactions.

Personal Data Protection Act: Governs the collection, use, and disclosure of personal data in loan agreements and related documentation.

Interest Rate Compliance: Regulatory requirement to comply with maximum interest rate caps and clear interest calculation methods under Singapore law.

Security Documentation: Requirements for properly documenting collateral arrangements and compliance with property law for secured lending.

Borrower Protection Requirements: mandatory disclosure requirements, fair lending practices, and cooling-off periods as required by Singapore regulations.

Documentation Standards: Requirements for written contracts in English, clear terms and conditions, and proper execution under Singapore law.

Debt Collection Regulations: Legal requirements and restrictions regarding debt collection practices and enforcement mechanisms in Singapore.

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