Unsecured Loan Agreement

For Only:

Ksh. 3000.00

Unsecured Loan Agreement

A Loan Agreement is an agreement where the lender agrees to provide a loan to a borrower subject to various agreed terms. The advanced sum can either be secured by a collateral or unsecured. A loan agreement spells out the details of the transaction, including the loan amount, the security if any, the interest rate and the repayment terms.

This template is for an unsecured loan. This agreement is applicable where the lender grants a borrower a loan facility without obliging the borrower to provide a security to guarantee its performance of the terms of the agreement- most particularly the repayment of the advanced sum. The lender of a loan that is unsecured bears greater risk and must therefore compensate for this by reducing the loan amount granted or increasing the interest rate. Such a transaction is most suitable where the loan amount is relatively small or where the loan is a friendly/ soft loan and the borrower has no ready assets which can be secured.

Purchase Document