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Loan Agreement Stockholder to Corporation

This template provides a formal agreement for a loan extended by a stockholder to a corporation. It is to be used when a shareholder (individual or entity) lends money to the company, outlining the terms of repayment, interest, and other relevant conditions.

Updated 15d ago
loan agreementshareholder loanintercompany loancorporate financedebt financingSME loanintra-group loan

Company Letterhead

{{company_name}}

{{company_address}}

Phone: {{phone}}

Email: {{email}}

Website: {{website}}

LOAN AGREEMENT

This Loan Agreement (the “Agreement”) is made and entered into this {{date}} day of {{month}}, {{year}}, by and between:

**LENDER:** {{lender_name}}, with a principal place of residence/business at {{lender_address}} (hereinafter referred to as the “Lender”).

**BORROWER:** {{company_name}}, a company duly incorporated under the laws of {{country}}, with its registered office at {{company_address}} (hereinafter referred to as the “Borrower”).

WHEREAS, the Lender is a stockholder of the Borrower; and

WHEREAS, the Borrower desires to borrow money from the Lender, and the Lender is willing to lend money to the Borrower, upon the terms and conditions set forth herein.

1. LOAN AMOUNT AND ADVANCE

1.1. The Lender hereby agrees to lend to the Borrower the principal sum of {{currency}} {{loan_amount}} ({{loan_amount_words}}) (the “Principal Amount”).

1.2. The Principal Amount shall be advanced to the Borrower on or before {{advance_date}}.

2. INTEREST RATE

2.1. The Principal Amount shall bear interest at a rate of {{interest_rate_percent}}% per annum (the “Interest Rate”).

2.2. Interest shall be calculated on the outstanding Principal Amount and shall accrue from the date of the advance.

2.3. Interest shall be compounded {{compounding_frequency}}.

3. REPAYMENT TERMS

3.1. The Borrower shall repay the Principal Amount and any accrued interest in accordance with the following schedule:

[ ] Full repayment on or before {{repayment_due_date}}.

[ ] In {{number_of_installments}} equal monthly/quarterly/annual installments of {{currency}} {{installment_amount}} beginning on {{first_installment_date}} and continuing on the {{day_of_month}} day of each subsequent month/quarter/year until the Principal Amount and all accrued interest are paid in full.

3.2. All payments shall be made in {{currency}} to the Lender at {{lender_payment_address}} or such other account as the Lender may specify in writing.

3.3. The Borrower may, at its option, prepay the Principal Amount in whole or in part at any time without penalty.

4. DEFAULT

4.1. The occurrence of any of the following shall constitute an event of default (each, an “Event of Default”) under this Agreement:

(a) Failure of the Borrower to pay any amount of Principal or interest when due under this Agreement.

(b) Breach by the Borrower of any other covenant or term of this Agreement.

(c) Insolvency or bankruptcy of the Borrower.

5. REMEDIES ON DEFAULT

5.1. Upon the occurrence of an Event of Default, the Lender may, at its option, declare the entire unpaid Principal Amount and all accrued interest immediately due and payable without presentment, demand, protest, or other notice of any kind.

5.2. The Lender shall have all rights and remedies available at law or in equity.

6. GOVERNING LAW AND JURISDICTION

6.1. This Agreement shall be governed by and construed in accordance with the laws of {{country_of_governance}}.

6.2. Any dispute arising out of or in connection with this Agreement shall be subject to the exclusive jurisdiction of the courts of {{country_of_jurisdiction}}.

7. MISCELLANEOUS

7.1. **Entire Agreement:** This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior agreements and understandings, both written and oral.

7.2. **Amendments:** No modification or amendment of this Agreement shall be effective unless in writing and signed by both parties.

7.3. **Notices:** All notices, requests, demands, and other communications under this Agreement shall be in writing and shall be deemed to have been duly given when delivered personally, sent by registered mail, or by reputable courier service to the addresses of the parties as set forth above or to such other address as either party may designate by written notice.

7.4. **Assignment:** This Agreement may not be assigned by either party without the prior written consent of the other party.

SIGNATURES

IN WITNESS WHEREOF, the parties hereto have executed this Loan Agreement as of the date first above written.

**LENDER:**

_____________________________

{{lender_name}}

**BORROWER:**

**{{company_name}}**

By: _________________________

Name: {{authorized_signatory_name}}

Title: {{authorized_signatory_title}}

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