Template: Loan Agreement | Business Operating Manual

Date: ______________________

1. The Parties

	Name	Address	ID/Registration No.
Lender
Borrower (person or company)

2. The Loan

Term	Value
Principal (amount lent)	₦ ______________________
Purpose of the loan	______________________
Interest rate	______ % per year
Interest method (tick one)	Flat rate Reducing balance
Total amount to be repaid (write it out, no surprises)	₦ ______________________
Date funds will be advanced	______________________

3. Repayment Schedule

Term	Value
Payment amount	₦ ______________ per month quarter
First payment due	______________________
Final payment due	______________________
Payment method / account	______________________
Early repayment allowed?	Yes, without penalty Yes, with fee: ______ No

4. Security (Collateral)

Term	Value
Is this loan secured?	Yes No (unsecured)
Collateral description (asset, serial numbers, location)	______________________
Who holds title documents during the loan	______________________

5. Default

Default occurs if the Borrower: misses ______ consecutive payments; becomes insolvent; sells the collateral without consent; or breaches this agreement in any material way.

On default, the Lender may: demand the outstanding balance in full; take possession of and sell the collateral (if secured); and recover reasonable recovery costs.

Late payment grace period: ______ days. Late fee (if any): ______________________

6. Other Terms

This is a loan, not an investment: it grants the Lender no ownership, shares, or say in the Borrower's business.
Any changes to this agreement must be written and signed by both parties.
Disputes will first be addressed by direct negotiation, then mediation arbitration the courts of ______________________.

7. Signatures

	Signature	Name	Date
Lender
Borrower
Witness 1
Witness 2