Short Term Loan Agreement Sample

This Short Term Loan Agreement (the "Agreement") is made and entered into as of [Date], by and between:

Lender: [Lender's Name], with an address at [Lender's Address] ("Lender"), and
Borrower: [Borrower's Name], with an address at [Borrower's Address] ("Borrower").

1. Loan Amount and Disbursement
The Lender agrees to loan the Borrower the principal sum of [Amount] (the "Loan"). The Loan will be disbursed to the Borrower’s bank account [Bank Details] on or before [Disbursement Date].

2. Term of Loan
The term of the Loan will be [Number] months, commencing on [Start Date] and ending on [End Date] (the "Maturity Date").

3. Interest Rate
The Loan will bear interest at a rate of [Interest Rate] per annum, calculated on the basis of a 360-day year.

4. Repayment
The Borrower agrees to repay the Loan in [Number] equal monthly installments of [Installment Amount], starting on [First Payment Date] and continuing on the same day of each subsequent month until the Loan is repaid in full.

5. Prepayment
The Borrower may prepay the Loan, in whole or in part, at any time without penalty. Any prepayments will first be applied to accrued interest and then to the principal balance.

6. Late Fees
If any installment payment is not paid within [Number] days of its due date, a late fee of [Late Fee Amount] will be charged.

7. Default
The Borrower will be in default if any of the following occurs:

• Failure to make a payment within [Number] days after it is due;
• Insolvency or bankruptcy of the Borrower;
• Any representation made by the Borrower proves to be false or misleading.

8. Remedies
Upon default, the Lender may declare the entire unpaid principal balance, accrued interest, and any applicable fees immediately due and payable. The Lender may also pursue any other legal remedies available under the law.

9. Governing Law
This Agreement will be governed by and construed in accordance with the laws of the State of [State], without regard to its conflict of laws principles.

10. Entire Agreement
This Agreement constitutes the entire agreement between the parties and supersedes all prior discussions, agreements, or understandings of any kind.

11. Amendment
This Agreement may be amended or modified only by a written agreement signed by both parties.

12. Notices
All notices under this Agreement will be in writing and will be deemed to have been duly given when delivered personally or sent by registered or certified mail, return receipt requested, to the addresses specified above.

IN WITNESS WHEREOF, the parties hereto have executed this Short Term Loan Agreement as of the day and year first above written.

Lender:
[Signature]
[Name]

Borrower:
[Signature]
[Name]

Witness:
[Signature]
[Name]

Notary Public:
[Signature]
[Name]
[Commission Expiration Date]