Loan agreement

Individual borrower; secured on financial assets
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Document overview

An agreement between a lender, who may be an individual or a corporate body, and a borrower, who is a individual person (not a company). Security given for the loan is some intangible asset like shares, or right to receive a debt or some other intellectual property. Third party guarantee provision optional. Strong provisions to protect the lender. Options for alternative repayment provisions and lender actions if borrower defaults.
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  • Length:12 pages (3300 words)
  • Available in:
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About this secured loan agreement

This secured loan agreement is suitable for any company or human individual to lend to one or more people. (See below for documents for loans to companies). You could use it in a business or private loan situation. If you are the borrower, you have the opportunity to edit any point you would prefer not to include.

The purpose of the loan is not important. (But of course it is important that the purpose is specified in the loan agreement.)

This agreement allows you to use shares or other financial instruments as collateral for a secured loan. The security could be any intellectual property. In addition, we have provided for a third party guarantor. That is optional of course and may be deleted easily.

There is no limit in law on the interest that the lender charges. We have provided for a greater rate of interest if the borrower falls behind with repayments.

The agreement could be whatever you want to put in it, but we have provided a sound and comprehensive set of terms, many with options. It is supported by drafting notes so that you will know whether you can safely delete some provision. It is most unlikely that you will want to add new provisions, but if you do, it is easy. Our layout and use of plain English also make it very easy to edit by deletion.

When to use this secured loan agreement

  • The lender and the borrower may be a business or an individual
  • Suitable where a company lends to a director or employee
  • Suitable for personal loans to family and friends
  • Either or both parties may be in the Republic of South Africa or abroad
  • Flexible for loans of any size and repayment terms of any complexity

The law in this secured loan agreement

There is little statutory regulation relating to an agreement of this nature, so you can make, more or less, the deal you choose.

Drawn outside the National Credit Act 2005, this agreement is not suitable for companies in the business of lending or providing credit to consumers.

Alternatives to this secured loan agreement

Net Lawman offers three documents in this set. Each is available in two versions: one for a company borrower and the other set for a human individual or partnership borrower. All can be for any purpose.

The documents are:

Contents of this secured loan agreement

The contents of this secured loan agreement include:

  • Structure of the loan;
  • Alternative draw down arrangements;
  • Provisions of information to lender to allow valuation;
  • Repayment and interest payment arrangements;
  • Method of payment;
  • Provision for default situations;
  • Borrower's warranties;
  • A round up of legal matters which many draftsmen use to create another ten paragraphs. Here they are in one place and in plain English
Sample loan agreementFront cover

Recent reviews

Great Service
11 October 2024
After much research I decided Net Lawman appeared to match my requirements better than any other option. The reviews were positive and there wasn't too much upsell or anyhidden agendas where you are trapped into paying more.
The document was suitable for my region (Tasmania) and covered all necessary aspects for the loan document. I have no hesitation in recommending these guys, you may get a better document than you would if attending a local lawyer and paying 10 times as much. These guys offer all the support you need.
Andrew Doran
Review of the Australian version
Clear Formats
18 December 2019
Clear formats easily modified with some good instructions. Transaction quick and easy.
Dorian Crighton
Review of the New Zealand version
Alleviated Concerns
11 September 2017
1. There is always a concern when you are dealing with an entity based outside your country. First, you wonder how authentic it is and payment security.
2. The manner you have structured yourselves and marketing strategy is really uniform, seamless and user friendly.
3. The Borrower's warranties and security clauses as applied to an individual Borrower.
4. The realisation that the thrust in an agreement is based on simplicity, understanding and to capture what you agree upon. My view is that it may be necessary to include dispute resolution, if not, why.
5. Most definitely. It is easy to follow your agreement and at the same learn from it.
Noko daniel Mabuela
Read all 5 reviews

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