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Fixed Sum Loan Agreement for Singapore

Fixed Sum Loan Agreement Template for Singapore

A Fixed Sum Loan Agreement under Singapore law is a legally binding contract that documents the terms and conditions of a loan with a specified principal amount. The agreement complies with Singapore's Moneylenders Act, Banking Act, and relevant financial regulations. It details the loan amount, interest rate, repayment terms, security arrangements, and events of default. The document incorporates specific requirements under Singapore law regarding interest rate caps, mandatory disclosure requirements, and enforcement mechanisms.

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What is a Fixed Sum Loan Agreement?

The Fixed Sum Loan Agreement is essential for documenting loan transactions in Singapore's financial landscape. It serves as a comprehensive contract between lenders and borrowers, whether they are individuals, businesses, or financial institutions. The agreement must comply with Singapore's strict regulatory framework, including the Moneylenders Act and Banking Act. This document is particularly crucial as it provides clarity on loan terms, protects both parties' interests, and ensures enforceability under Singapore law. The agreement typically includes detailed provisions on loan amount, interest calculations, repayment schedules, security arrangements, and default scenarios.

What sections should be included in a Fixed Sum 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 and Purpose: Specified sum and intended use of the loan

5. Interest Rate: Agreed interest rate and calculation method

6. Repayment Terms: Schedule and method of repayment

7. Security: Any collateral or guarantees provided

8. Events of Default: Circumstances constituting default and consequences

9. Governing Law: Applicable law and jurisdiction

What sections are optional to include in a Fixed Sum Loan Agreement?

1. Representations and Warranties: Statements of fact by borrower - typically used for larger loans or corporate borrowers

2. Conditions Precedent: Pre-conditions for loan disbursement - used for complex or high-value loans

3. Insurance Requirements: Required insurance coverage - used when loan is secured by physical assets

4. Assignment Clause: Rights to assign the loan - used when transfer rights are important

What schedules should be included in a Fixed Sum Loan Agreement?

1. Repayment Schedule: Detailed payment dates and amounts

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

3. Drawdown Notice Form: Template for requesting loan disbursement

4. Guarantee Agreement: If third-party guarantee is provided

Authors

Alex Denne

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

Jurisdiction

Singapore

Publisher

Genie AI

Document Type

Loan Agreement

Sector

Banking

Cost

Free to use

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