No Interest Loan Agreement Template for Singapore

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Key Requirements PROMPT example:

No Interest Loan Agreement

"I need a No Interest Loan Agreement under Singapore law for a $50,000 loan to my sister's startup company, with monthly repayments starting from March 2025 and including a personal guarantee from her husband."

Document background
The No Interest Loan Agreement is commonly used in Singapore for formalizing interest-free lending arrangements, often between related parties or for social impact purposes. This document establishes clear terms for loan repayment while complying with Singapore's legal framework, including the Civil Law Act and Moneylenders Act. It's particularly relevant for family lending, charitable organizations, and business relationships where charging interest isn't desired or permitted. The agreement typically includes loan amount, repayment schedule, default provisions, and any security arrangements, ensuring both parties' interests are protected while maintaining the interest-free nature of the transaction.
Suggested Sections

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: Specification of the principal amount and intended use

5. Repayment Terms: Schedule and method of repayment

6. Default Provisions: Consequences of failure to repay as agreed

7. Representations and Warranties: Statements of fact by the borrower

8. Governing Law: Specification of Singapore law as governing law

Optional Sections

1. Security: Details of any collateral or security (used when loan is secured by assets)

2. Guarantor Provisions: Terms relating to any guarantors (used when there is a third-party guarantor)

3. Early Repayment: Terms for early loan settlement (used if early repayment is permitted)

4. Assignment: Rights to assign the agreement (used if assignment rights are required)

Suggested Schedules

1. Repayment Schedule: Detailed timeline of repayment installments

2. Security Details: Details of any secured assets or collateral (for secured loans only)

3. Guarantor Information: Details of guarantors and their obligations (when guarantors are involved)

4. Form of Notice: Template for formal notices under the agreement

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 | Serial Founder & Legal AI Author

Industries

Civil Law Act (Cap. 43): Primary legislation governing contract law in Singapore, establishing fundamental principles of contract formation and enforcement

Contract Law (Amendment) Act 2012: Updates to Singapore's contract law framework, incorporating modern commercial practices

Moneylenders Act (Cap. 188): Regulates money lending activities in Singapore, including licensing requirements and restrictions on lending practices

Moneylenders Rules 2009: Detailed regulations implementing the Moneylenders Act, specifying operational requirements and borrower protections

Banking Act (Cap. 19): Regulates banking institutions and certain financial transactions, relevant if loan involves regulated financial institutions

Financial Advisers Act (Cap. 110): Governs financial advisory services and may be relevant if loan involves financial advice or structured products

Companies Act (Cap. 50): Relevant for corporate loans, including requirements for company charges and securities

Electronic Transactions Act: Governs the validity and use of electronic signatures and electronic execution of documents

Stamp Duties Act: Requires proper stamping of loan documents and specifies applicable duties

Common Law Principles: English common law principles applicable to contracts in Singapore, including offer, acceptance, consideration, and intention to create legal relations

Anti-Money Laundering Regulations: Compliance requirements to prevent money laundering through loan transactions

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,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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