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Personal Loan Promissory Note for Singapore

Personal Loan Promissory Note Template for Singapore

A Personal Loan Promissory Note is a legally binding document used in Singapore that evidences a borrower's promise to repay a specific sum of money to a lender under agreed terms. The document is governed by Singapore law and must comply with the Moneylenders Act and related regulations. It includes essential details such as loan amount, interest rate, repayment schedule, and default provisions, providing a formal structure for personal lending arrangements.

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Personal Loan Promissory Note

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What is a Personal Loan Promissory Note?

The Personal Loan Promissory Note serves as a critical legal instrument in Singapore's lending landscape, providing documentation and protection for both lenders and borrowers in personal loan transactions. This document is essential when individuals or entities engage in personal lending, whether for general purposes, business needs, or specific purchases. It must comply with Singapore's Moneylenders Act and includes key information such as loan amount, interest rates, repayment terms, and consequences of default. The document creates a clear record of the debt obligation and helps ensure enforceability under Singapore law.

What sections should be included in a Personal Loan Promissory Note?

1. Loan Amount and Promise to Pay: Principal amount and explicit promise by borrower to repay the loan amount to the lender

2. Payment Terms: Details of repayment schedule, installment amounts, due dates, and method of payment

3. Interest Rate: Specification of applicable interest rate, calculation method, and compliance with Moneylenders Act limits

4. Default Provisions: Consequences of missed payments, events of default, and remedies available to the lender

5. Governing Law: Specification of Singapore law as governing jurisdiction and reference to relevant Acts

What sections are optional to include in a Personal Loan Promissory Note?

1. Security: Details of any collateral or assets securing the loan, including description and valuation

2. Guarantor Provisions: Terms and obligations of third-party guarantors, if any, including extent of guarantee and enforcement

3. Prepayment Terms: Conditions and procedures for early repayment, including any prepayment penalties or benefits

What schedules should be included in a Personal Loan Promissory Note?

1. Repayment Schedule: Detailed table showing payment dates, installment amounts, and principal/interest breakdown

2. Security Details Schedule: Comprehensive description of any collateral or security provided, including registration details if applicable

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: Chapter 188 of Singapore Laws - Primary legislation governing money lending activities, including interest rate restrictions and licensing requirements

Civil Law Act: Chapter 43 of Singapore Laws - Fundamental legislation governing civil matters including contractual relationships and remedies

Contracts Act: Chapter 53 of Singapore Laws - Key legislation governing formation and enforcement of contracts in Singapore

Money-Changing and Remittance Businesses Act: Legislation governing money changing and remittance businesses, relevant for cross-border loan considerations

Interest Rate Regulations: Specific provisions under Moneylenders Act regarding maximum interest rates and calculation methods

Maximum Loan Amount Rules: Regulatory limits on loan amounts that can be extended under personal loans

Enforceability Requirements: Legal requirements for making the promissory note enforceable under Singapore law

Statute of Limitations: Time limits for debt collection and enforcement of promissory notes in Singapore

MAS Regulations: Monetary Authority of Singapore's regulatory requirements affecting personal loans

AML Requirements: Anti-Money Laundering requirements that may apply to personal loan transactions

Essential Document Elements: Required components including party identification, loan amount, interest rate, repayment terms, default provisions, and governing law clause

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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