Document background
The Third Party Loan Agreement is commonly used in Singapore when a borrower requires additional security to obtain loan funding, and a third party is willing to provide that security. This document is essential for protecting the interests of all parties involved - the lender, borrower, and guarantor - by clearly defining their respective rights and obligations. It must comply with Singapore's strict financial regulations, including the Moneylenders Act and MAS guidelines, particularly regarding interest rates and security arrangements. The agreement typically includes detailed provisions for loan disbursement, repayment schedules, events of default, and enforcement mechanisms.
