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Loan Agreement Template (Singapore)

A properly drafted loan agreement protects both lender and borrower in Singapore by recording the principal amount, interest rate, repayment schedule, security arrangements, and consequences of default. Our free Singapore loan agreement template is aligned with the Contract Act (Cap. 25), the Moneylenders Act (Cap. 188), and the Stamp Duties Act (Cap. 312), providing a legally sound and professionally formatted document for personal and business loans in Singapore.

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LOAN AGREEMENT
LENDER
Lim Wei Ming
30 Cecil Street, #22-01, Singapore 049712 · UEN/NRIC: S6512345A
BORROWER
Ahmad Bin Hassan
12 Tanjong Pagar Road, #05-03, Singapore 088443 · NRIC/UEN: S7812345B
Date: 25 April 2026
Principal: SGD 10,000 · Interest: 5% p.a.
This Loan Agreement ("Agreement") is entered into as of 25 April 2026 between Lim Wei Ming ("Lender") and Ahmad Bin Hassan ("Borrower"). The parties agree as follows:
1.
LOAN
Subject to the terms and conditions of this Agreement, the Lender agrees to lend to the Borrower, and the Borrower agrees to borrow from the Lender, the principal sum of Singapore Dollars 10,000 (SGD 10,000) (the "Loan"). The Loan shall be disbursed by the Lender to the Borrower on or about 1 May 2026 (the "Commencement Date") by bank transfer to the Borrower's designated bank account. The Borrower acknowledges that this Agreement does not constitute unlicensed moneylending within the meaning of the Moneylenders Act (Cap 188) of Singapore.
2.
INTEREST
The Loan shall bear interest at the rate of 5% per annum, calculated on the outstanding principal balance. Interest shall accrue from the Commencement Date and shall be calculated on a daily basis (actual/365 convention). Interest shall be included in each monthly instalment as set out in clause 3 below.
3.
REPAYMENT SCHEDULE
The Borrower shall repay the Loan by 12 equal monthly instalments of SGD 885 each, commencing one (1) calendar month after the Commencement Date and continuing on the same day of each subsequent month until the Loan and all accrued interest have been repaid in full. If the due date falls on a Saturday, Sunday, or public holiday in Singapore, payment shall be made on the next preceding business day. Time is of the essence in respect of all repayment obligations.
4.
LATE PAYMENT INTEREST
If the Borrower fails to make any payment when due under this Agreement, the Borrower shall pay interest on the overdue amount at the rate of 8% per annum (or, if lower, the maximum rate permitted by law), calculated from the due date until the date of actual payment, compounding monthly. This rate of 8% per annum is consistent with the default rate for judgment debts under Civil Law Act (Cap 43) s 12(1). Late payment interest shall accrue in addition to, and not instead of, any other remedies available to the Lender under this Agreement or applicable law.
5.
PREPAYMENT
The Borrower may, at any time, prepay the whole or any part of the outstanding Loan without premium, penalty, or break cost, provided that: (a) the Borrower gives the Lender not less than five (5) business days' prior written notice; and (b) each prepayment is accompanied by all accrued interest on the amount prepaid up to and including the date of prepayment. Partial prepayments shall reduce subsequent instalments on a pro-rata basis unless otherwise agreed in writing.
6.
USE OF FUNDS
The Borrower undertakes to use the proceeds of the Loan solely for the personal purpose agreed between the parties and not for any illegal purpose. The Borrower confirms that this Agreement is a private loan between individuals and not a moneylending transaction regulated by the Moneylenders Act (Cap 188) of Singapore.
7.
EVENTS OF DEFAULT
Each of the following shall constitute an Event of Default: (a) the Borrower fails to pay any amount due under this Agreement within five (5) business days of the due date; (b) the Borrower breaches any other provision of this Agreement and, if such breach is remediable, fails to remedy it within fourteen (14) days of written notice; (c) the Borrower becomes insolvent, is unable to pay its debts as they fall due, makes an assignment for the benefit of creditors, or any analogous event occurs under Singapore law; (d) a judicial manager, receiver, liquidator, or equivalent is appointed over the Borrower or any material part of its assets; (e) any material representation or warranty made by the Borrower proves to be false or misleading; (f) cross-default: the Borrower defaults under any other financial indebtedness exceeding SGD 5,000 and such default is not waived within five (5) business days; or (g) any execution or distress is levied against the Borrower's assets and is not discharged within seven (7) days.
8.
ACCELERATION
Upon the occurrence of an Event of Default, the Lender may, by written notice to the Borrower, declare the entire outstanding principal balance of the Loan, together with all accrued interest and any other amounts due under this Agreement, to be immediately due and payable without further notice or demand. The Lender's right of acceleration shall be in addition to, and not in substitution for, any other right or remedy available to the Lender under this Agreement or at law.
9.
REPRESENTATIONS AND WARRANTIES
The Borrower represents and warrants to the Lender that: (a) the Borrower has full legal capacity and authority to enter into and perform this Agreement; (b) this Agreement constitutes a legal, valid, and binding obligation enforceable against the Borrower; (c) no consent, approval, or authorisation of any governmental authority is required for execution of this Agreement that has not already been obtained; (d) the Borrower is not currently in default under any other material agreement or instrument; and (e) all information provided to the Lender in connection with this Agreement is true, accurate, and complete in all material respects.
10.
STAMP DUTY
The Borrower shall be responsible for the payment of any stamp duty payable on this Agreement under the Stamp Duties Act (Cap 312). For loan agreements with a term exceeding one (1) year, stamp duty is typically assessed at 0.4% of the loan amount. The Borrower shall stamp this Agreement within fourteen (14) days of execution if required by law.
11.
ELECTRONIC EXECUTION
This Agreement may be executed electronically. Electronic signatures are valid and enforceable under the Electronic Transactions Act 2010 (Cap 88) and have the same legal effect as handwritten signatures.
12.
GOVERNING LAW AND JURISDICTION
This Agreement is governed by and construed in accordance with the laws of the Republic of Singapore. The parties irrevocably submit to the exclusive jurisdiction of the courts of Singapore for the resolution of any dispute arising out of or in connection with this Agreement. For disputes not exceeding SGD 20,000, either party may elect to refer the matter to the Singapore Small Claims Tribunal.
13.
GENERAL PROVISIONS
Entire Agreement: This Agreement constitutes the entire agreement between the parties and supersedes all prior agreements, representations, and understandings, whether oral or written. Amendment: No amendment is effective unless in writing and signed by both parties. Severability: If any provision is held invalid or unenforceable, the remaining provisions remain in full force. Waiver: No waiver of any breach shall constitute a waiver of any future breach. Notices: All notices shall be in writing and delivered by hand, registered post, or email to the addresses set out above. Contracts (Rights of Third Parties) Act: A person who is not a party to this Agreement has no right under the Contracts (Rights of Third Parties) Act 2001 (Cap 53B) to enforce any term.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the Effective Date first written above.
LENDER
Lim Wei Ming
Date: ____________________
BORROWER
Ahmad Bin Hassan
Date: ____________________

What Is a Loan Agreement?

A loan agreement is a legally binding contract between a lender and a borrower that documents the terms on which money is advanced — the principal amount, the interest rate, the repayment schedule, any security or collateral provided, and the remedies available to the lender in the event of default. A written loan agreement protects both parties by preventing disputes over what was agreed and provides enforceable evidence of the debt should the borrower fail to repay. Loan agreements are used for personal loans between individuals, director loans within companies, inter-company loans, and loans from private investors to businesses.

In Singapore, a loan agreement is governed by the general principles of contract law under the Contract Act (Cap. 25) — requiring offer, acceptance, consideration, and an intention to create legal relations. The Moneylenders Act (Cap. 188) is critical: it regulates the business of moneylending in Singapore and stipulates that any person who lends money at interest as a business must hold a Singapore moneylender's licence. A private individual or company making a one-off or infrequent loan — without being in the business of moneylending — is not regulated by the Moneylenders Act, and the parties are free to agree any interest rate. However, Singapore courts retain the power to reopen extortionate loan agreements under section 23 of the Civil Law Act (Cap. 43) where the transaction is unconscionable.

From a tax and duties perspective, Singapore loan agreements are subject to stamp duty under the Stamp Duties Act (Cap. 312). The duty on a loan agreement secured by a Singapore mortgage or charge is ad valorem; for unsecured loan agreements, a nominal S$10 stamp duty applies. The document must be stamped within fourteen days of execution if it is executed in Singapore, or within thirty days of being received in Singapore if executed overseas. The Singapore Limitation Act (Cap. 163) provides a six-year limitation period for actions on simple contracts, meaning a lender must commence proceedings within six years of the date on which the borrower defaulted or the loan became due. Singapore courts including the State Courts and the High Court have jurisdiction to enforce loan agreements, and unpaid debts may also be pursued through bankruptcy proceedings for individuals or winding-up proceedings for companies under Singapore insolvency law.

What This Template Covers

Our Singapore loan agreement template includes all essential provisions for a clear, enforceable personal or business loan in Singapore.

Parties' Details

Full legal names, identification numbers (NRIC/FIN or UEN for companies), and addresses of the lender and borrower.

Loan Amount and Disbursement

Principal amount in Singapore dollars (S$), method of disbursement (bank transfer, cheque), and the disbursement date.

Interest Rate

Annual interest rate expressed as a percentage, with a choice of simple or compound interest, and the date from which interest accrues.

Repayment Schedule

Instalment amounts and due dates, or a lump-sum repayment date — with an amortisation table for instalment loans.

Late Payment Charges

Default interest rate on overdue amounts, and any grace period before default interest begins to accrue.

Security and Collateral

Details of any security provided — personal guarantee, mortgage, charge over assets, or pledge — with reference to any separate security document.

Prepayment Rights

Whether the borrower may repay early, and whether an early repayment fee applies.

Events of Default

Clear list of events that trigger acceleration — missed instalments, insolvency, breach of warranty, or cross-default on other obligations.

Representations and Warranties

Borrower's confirmation of capacity to borrow, no existing default, and accuracy of financial information provided.

Governing Law and Jurisdiction

Singapore law as the governing law; jurisdiction of the Singapore State Courts or High Court (or SIAC arbitration) for dispute resolution.

Stamp Duty Acknowledgement

Provision confirming which party bears responsibility for payment of Singapore stamp duty under the Stamp Duties Act (Cap. 312).

How to Create a Singapore Loan Agreement

Follow these steps to produce a clear, stamped, and enforceable loan agreement in Singapore.

  1. 1

    Agree the Key Commercial Terms

    Before drafting, confirm the principal amount in S$, the interest rate, the repayment schedule, any security, and what happens if the borrower defaults. Record these in writing so they can be accurately transferred to the agreement.

  2. 2

    Fill in the Template

    Enter the full legal details of both lender and borrower, the agreed loan terms, and any special conditions. For Singapore company borrowers, use the UEN and registered address as shown in the ACRA BizFile register.

  3. 3

    Obtain Legal Review if Needed

    For larger loans — or where security over Singapore property is involved — have a Singapore-qualified lawyer review the agreement and the security documents. The Law Society of Singapore maintains a lawyer referral service.

  4. 4

    Sign and Witness

    Both parties sign the agreement. Two copies should be signed — one for each party. Electronic signatures are valid under the Electronic Transactions Act 2010 (Cap. 88) for commercial loan agreements.

  5. 5

    Stamp the Document

    Pay Singapore stamp duty via the IRAS e-Stamping portal. Unsecured loan agreements attract a nominal S$10 duty. Stamping should be completed within fourteen days of execution for documents executed in Singapore. Retain the stamped document as evidence of the debt.

Legal Considerations

Singapore law governing private lending is accessible but has important limits. Understanding the key rules protects both lender and borrower.

This template is provided for informational purposes only and does not constitute legal advice. For advice tailored to your situation, consult a Singapore-qualified lawyer or visit the Law Society of Singapore.

Reviewed for Singapore Law

Moneylenders Act (Cap. 188) — When Does It Apply?

The Singapore Moneylenders Act (Cap. 188) regulates the business of moneylending. It applies to any person who lends money at interest as a business or who holds themselves out as willing to lend — not to a person who makes a genuine private loan. The Singapore Registry of Moneylenders (under MinLaw) maintains a list of licensed moneylenders. Unlicensed moneylending — commonly called "loansharking" — is a serious criminal offence in Singapore. If you are a Singapore company or individual making occasional private loans to family, friends, or employees, you are not subject to the Act; but if you are in the habit of lending to the public, a licence is required. Courts may also declare a loan agreement unenforceable where it has the characteristics of unlicensed moneylending.

Limitation Act (Cap. 163) — Time to Sue

The Singapore Limitation Act (Cap. 163) imposes a six-year limitation period on actions founded on simple contract, running from the date on which the cause of action accrued — typically the date of default or the date the loan became repayable on demand. After six years, the lender's right to sue in the Singapore courts is extinguished, although the debt itself may survive. Lenders in Singapore should monitor repayment and commence proceedings promptly if default occurs, to preserve their legal rights. The Limitation Act also applies to guarantees — a guarantee claim must generally be brought within six years of the guarantor's default.

Stamp Duties Act (Cap. 312) — Stamp Duty on Loan Agreements

Under the Singapore Stamp Duties Act (Cap. 312), a loan agreement must be stamped before it can be produced in evidence in any Singapore court proceedings. For unsecured personal or business loan agreements, the duty is a nominal S$10. For a loan agreement accompanied by a mortgage over Singapore property, ad valorem duty applies to the mortgage instrument. Stamping is effected through the IRAS e-Stamping online portal. An unstamped document may be admitted as evidence on payment of the outstanding duty plus a penalty; but it is always better practice to stamp promptly upon execution.

Director Loans and Inter-Company Loans in Singapore

In Singapore, loans by a director to a company or by a company to its director are permitted but are subject to disclosure and approval requirements under the Companies Act 1967 (Cap. 50). Director loans must be disclosed in the company's financial statements. Loans by a company to its own directors (other than for staff benefits) may require shareholder approval. Interest charged on inter-company loans within a Singapore corporate group must comply with Inland Revenue Authority of Singapore (IRAS) transfer pricing guidelines if the parties are related. Singapore companies should consult a corporate lawyer and a tax adviser when structuring intra-group lending.

Frequently Asked Questions

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Draft a clear, stamp-duty compliant loan agreement for Singapore in minutes. Enter your terms, download the PDF, and have it stamped via IRAS e-Stamping — fully enforceable in the Singapore courts.

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