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Unsecured Loan Agreement for Singapore

Unsecured Loan Agreement Template for Singapore

A legally binding agreement governed by Singapore law that documents the terms and conditions of an unsecured loan between a lender and borrower. The agreement details the loan amount, interest rate, repayment terms, and obligations of both parties, without requiring collateral or security. It incorporates provisions compliant with Singapore's Moneylenders Act and relevant financial regulations.

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Unsecured Loan Agreement

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What is a Unsecured Loan Agreement?

An Unsecured Loan Agreement is essential when parties wish to formalize a loan arrangement without pledging specific assets as security. Under Singapore law, this document establishes the legal framework for the loan, including detailed terms about the principal amount, interest calculations, repayment schedule, and default provisions. It's particularly useful for business loans, personal lending, or situations where traditional secured lending isn't practical or necessary. The agreement must comply with Singapore's Moneylenders Act and related regulations, especially regarding interest rate caps and mandatory disclosures.

What sections should be included in a Unsecured Loan Agreement?

1. Parties: Identification of lender and borrower with full legal names and addresses

2. Background: Context of the loan arrangement and relationship between parties

3. Definitions: Key terms used throughout the agreement

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

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

6. Repayment Terms: Payment schedule, method, and duration

7. Events of Default: Circumstances constituting default and consequences

8. Representations and Warranties: Statements of fact by borrower regarding their capacity to enter agreement

What sections are optional to include in a Unsecured Loan Agreement?

1. Early Repayment: Terms and conditions for early loan settlement, including any penalties or fees

2. Assignment: Provisions governing the transfer or assignment of loan rights and obligations

3. Insurance: Requirements for loan insurance and related obligations

What schedules should be included in a Unsecured Loan Agreement?

1. Repayment Schedule: Detailed schedule of payment dates and amounts

2. Loan Disbursement Details: Bank account information and disbursement instructions

3. Additional Terms and Conditions: Supplementary terms specific to the loan arrangement

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

Financing Agreement

Cost

Free to use
Relevant legal definitions















Clauses




















Industries

Moneylenders Act (Chapter 188): Primary legislation governing moneylending business in Singapore, including licensing requirements, interest rate caps, and prohibited practices

Contracts Act (Chapter 53): Fundamental law governing contract formation, validity, and enforcement in Singapore, including offer, acceptance, consideration, and capacity to contract

Civil Law Act (Chapter 43): General legislation governing civil matters including contractual rights, remedies, and limitations

Interest Act (Chapter 197): Legislation governing interest rates and their computation in Singapore

Moneylenders Rules 2009: Subsidiary legislation providing detailed regulations for moneylenders including operational requirements and borrower protection measures

Moneylenders (Prevention of Money Laundering and Financing of Terrorism) Rules 2009: Regulations specifically addressing anti-money laundering and counter-terrorism financing requirements for moneylenders

Interest Rate Restrictions: Common law principles and statutory limits on interest rates to prevent usury and unfair lending practices

Unconscionable Bargains Doctrine: Legal principle protecting borrowers from unfair or exploitative loan terms where there is inequality of bargaining power

Registry of Moneylenders Compliance: Regulatory requirements and guidelines set by the Registry of Moneylenders for licensed moneylenders

MAS Guidelines: Relevant guidelines from the Monetary Authority of Singapore affecting lending practices and financial transactions

Teams

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