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Non Interest Bearing Loan Agreement for Singapore

Non Interest Bearing Loan Agreement Template for Singapore

A legally binding agreement governed by Singapore law that documents an interest-free loan between two parties. The agreement outlines the principal amount, repayment terms, and obligations of both parties while explicitly stating that no interest will be charged. It includes provisions for default, security (if applicable), and enforcement mechanisms in accordance with Singapore's legal framework.

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Non Interest Bearing Loan Agreement

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What is a Non Interest Bearing Loan Agreement?

The Non Interest Bearing Loan Agreement is commonly used in Singapore for documenting interest-free loans, often between related parties or in situations where charging interest is not desired or permitted. This agreement is particularly relevant for family loans, shareholder funding, or certain religious-compliant financing arrangements. The document encompasses essential elements required under Singapore law, including clear identification of parties, loan amount, repayment terms, and enforcement mechanisms. It's designed to protect both lender and borrower while ensuring compliance with relevant Singapore legislation, including the Civil Law Act and Moneylenders Act.

What sections should be included in a Non Interest Bearing Loan Agreement?

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

2. Background: Context and purpose of the loan agreement

3. Definitions: Key terms used throughout the agreement

4. Loan Amount: Principal amount being lent and confirmation of non-interest bearing nature

5. Repayment Terms: Schedule and method of repayment, including payment mechanics

6. Representations and Warranties: Standard representations and warranties from both parties

7. Default Provisions: Events of default and consequences of default

8. Covenants: Ongoing obligations of the borrower

9. Governing Law and Jurisdiction: Specification of Singapore law as governing law and jurisdiction

What sections are optional to include in a Non Interest Bearing Loan Agreement?

1. Security: Details of any collateral or security provided for secured loans

2. Guarantor Provisions: Terms relating to any guarantors when third-party guarantees are required

3. Early Repayment: Terms and conditions for early repayment of the loan

4. Assignment: Rights and restrictions regarding assignment of the agreement

5. Force Majeure: Provisions dealing with unforeseen circumstances preventing performance

What schedules should be included in a Non Interest Bearing Loan Agreement?

1. Repayment Schedule: Detailed schedule showing repayment dates and amounts

2. Security Details: Comprehensive description of any security or collateral provided

3. Form of Notice: Standard template for serving notices under the agreement

4. Conditions Precedent: List of conditions that must be satisfied before loan disbursement

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

Civil Law Act (Cap. 43): Primary legislation governing civil law matters in Singapore, including contractual relationships and obligations

Contracts Act (Cap. 53): Key legislation governing contract formation, validity, and enforcement in Singapore

Moneylenders Act (Cap. 188): Regulates moneylending activities in Singapore - needs to be considered to ensure the loan agreement doesn't fall under regulated moneylending activities

Contract Formation Requirements: Essential elements including offer, acceptance, consideration, intention to create legal relations, and capacity of parties

Documentation Requirements: Written form (recommended), clear terms and conditions, proper execution requirements for the loan agreement

Loan-Specific Terms: Essential terms including repayment schedule, default provisions, explicit statement of no interest, and any security/collateral arrangements

Companies Act: Relevant if either party is a company, governing corporate borrowing and lending

Exchange Control Regulations: Applicable for cross-border loans, governing international money transfers

Anti-Money Laundering Regulations: Compliance requirements to prevent money laundering through loan transactions

Stamp Duty Act: Tax implications and stamp duty requirements for loan documentation

Income Tax Considerations: Tax implications for both lender and borrower in an interest-free loan arrangement

Limitation Act: Governs the time limits within which legal action can be taken to enforce the loan agreement

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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