Free Finance Loan Agreement Template
Finance Loan Agreement
Agreement Date: August 21, 2050
Loan Amount: $50,000
Borrower: [Borrower Name]
Lender: [Your Company Name]
Loan Term: 5 years
I. Introduction
A. Purpose of Agreement
This Financial Loan Agreement (the "Agreement") is made between [Your Company Name], with its principal place of business at [Your Company Address] (the "Lender"), and [Borrower Name], residing at [Borrower Address] (the "Borrower"). The purpose of this Agreement is to outline the terms and conditions under which the Lender will provide a loan to the Borrower.
B. Loan Overview
The Lender agrees to loan the Borrower the principal sum of $50,000 (the "Loan Amount") on the terms and conditions set forth in this Agreement. The Loan Amount will be used by the Borrower for business expansion purposes.
II. Loan Terms
A. Loan Amount
The total amount of the loan provided under this Agreement is $50,000 USD. This amount will be disbursed to the Borrower’s account within 10 business days from the date of this Agreement.
B. Interest Rate
The loan will accrue interest at a fixed rate of 5.00% per annum. The interest rate will be calculated based on the outstanding principal balance.
C. Repayment Schedule
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Repayment Period: The Borrower agrees to repay the Loan Amount in 60 monthly installments.
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Installment Amount: Each installment will be $944.64 USD.
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First Payment Due Date: The first payment is due on September 21, 2050, and subsequent payments are due on the 21st of each month.
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Payment Method: Payments will be made via bank transfer to the account details provided by the Lender.
D. Prepayment
The Borrower may prepay the loan in full or in part at any time without penalty. Any prepayment will be applied first to accrued interest and then to the principal balance.
E. Late Fees
If the Borrower fails to make a payment within 15 days of the due date, a late fee of 1.50% of the overdue amount will be charged.
III. Loan Security
A. Collateral
As security for the repayment of the loan, the Borrower agrees to provide a second lien on business assets.
B. Insurance
The Borrower agrees to maintain insurance on the collateral with coverage amounts sufficient to protect the Lender’s interests. Proof of insurance will be provided to the Lender upon request.
IV. Covenants
A. Financial Statements
The Borrower agrees to provide the Lender with quarterly financial statements, including balance sheets and income statements, to monitor the financial health of the Borrower’s business.
B. Compliance with Laws
The Borrower agrees to comply with all applicable laws and regulations related to their business operations.
V. Default
A. Events of Default
The following events will constitute a default under this Agreement:
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Failure to make any payment when due.
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Breach of any covenant or obligation under this Agreement.
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Insolvency or bankruptcy of the Borrower.
B. Remedies
Upon an event of default, the Lender may:
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Declare the entire outstanding principal amount and accrued interest immediately due and payable.
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Pursue all legal remedies available under applicable law, including foreclosure on any collateral.
VI. Miscellaneous
A. Amendments
Any amendments to this Agreement must be made in writing and signed by both parties.
B. Governing Law
This Agreement shall be governed by and construed in accordance with the laws of the State of Illinois.
C. Dispute Resolution
Any disputes arising out of or in connection with this Agreement shall be resolved through arbitration in Springfield, Illinois.
D. Notices
All notices required under this Agreement shall be sent to the following addresses:
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Lender: [Your Company Name], [Your Company Address]
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Borrower: [Borrower Address]
E. Severability
If any provision of this Agreement is found to be invalid or unenforceable, the remaining provisions shall continue in full force and effect.
F. Entire Agreement
This Agreement constitutes the entire agreement between the parties and supersedes all prior agreements and understandings, whether written or oral.
Lender
[Your Company Name]
Name: [Lender Representative]
Title: [Lender Representative Title]
Date:
Borrower
[Borrower Name]
Date:
