Simple Loan Agreement Sample South Africa

A loan agreement is an essential document that outlines the terms and conditions of a loan between a lender and a borrower. It is crucial that both parties thoroughly understand and agree upon the contents of the loan agreement before signing it. This article will provide a simple loan agreement sample for South Africa.

A loan agreement typically includes the following details:

1. Loan amount: This is the amount of money that the lender is willing to lend to the borrower.

2. Interest rate: This is the percentage of the loan amount that the borrower will pay back as interest.

3. Repayment terms: This includes the frequency of payments, the method of payment, and the duration of the loan.

4. Security: This refers to any collateral that the borrower will provide to the lender to secure the loan.

5. Default: This outlines the consequences if the borrower fails to repay the loan according to the terms of the agreement.

Here is a simple loan agreement sample for South Africa:

Loan Agreement

This loan agreement (the “Agreement”) is made on [Date] between [Lender`s Name], with a registered address at [Lender`s Address] (the “Lender”) and [Borrower`s Name], with a registered address at [Borrower`s Address] (the “Borrower”).

Loan Amount

The Borrower agrees to borrow the sum of [Loan Amount in Words and Numbers] (the “Loan”) from the Lender.

Interest Rate

The interest rate for the Loan shall be [Interest Rate] per annum, payable [Payment Frequency].

Repayment Terms

The Borrower shall repay the Loan in [Number of Installments] equal installment(s) of [Installment Amount] each, payable on [Payment Date] of each month, commencing on [Date of First Payment] and ending on [Date of Final Payment].


The Borrower shall provide [Type of Security Provided] as security for the Loan.


In the event of default by the Borrower in the payment of any installment of the Loan, the Lender shall have the right to declare the entire outstanding amount of the Loan, together with all accrued interest and any costs incurred by the Lender, to be immediately due and payable.

This Agreement represents the entire agreement between the Lender and the Borrower and supersedes all prior negotiations, representations, and agreements. This Agreement may only be amended in writing and signed by both parties.

In Witness whereof, the parties have executed this Agreement as of the date first above written.

[Lender`s Signature] [Borrower`s Signature]

[Lender`s Name] [Borrower`s Name]

Sealed and delivered in the presence of:

[Witness`s Name and Signature] [Witness`s Name and Signature]

By using this simple loan agreement sample for South Africa, both the lender and the borrower can ensure a clear understanding of the terms and conditions of the loan. It is always recommended to consult with a legal professional to ensure the agreement complies with all relevant South African laws and regulations.

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