Loan agreement: individual borrower; secured on financial assets
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.
- Solicitor approved
- Plain English makes editing easy
- Guidance notes included
- Money back guarantee
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:
- Unsecured loan agreement: person to person; private or business
- Loan agreement: individual borrower; secured on financial assets (this agreement)
- Loan agreement: private borrower; secured on physical assets
- Loan agreement: company; secured by guarantee
- Loan agreement: person to person; secured by guarantee
- Loan agreement: company; secured on financial instruments
- Loan agreement: company borrower; secured on physical assets; guarantor option
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
This document was written by a solicitor for Net Lawman. It complies with current South Africa law.
What other customers thought
Average customer rating
By Noko daniel Mabuela 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.
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"Yes the document was very useful, easy to read and understand and contained everything I needed. I will definitely refer to your site in the future."Vicky Gregory
"Very useful and practical for start-ups and entrepreneurs."Purple Cow Ventures