LOAN AGREEMENT

KNOW ALL MEN BY THESE PRESENTS:

This Loan Agreement is executed this (insert date) by and between:
(state name), of legal age, married and a resident of
(insert address), hereinafter referred to as the LENDER;
-

and

(state name), of legal age, married and a resident of

(insert address), hereinafter referred to as the
BORROWER.
-WITNESSETHThe LENDER has sufficient cash to lend to BORROWER, and the latter has agreed to
avail of a loan thereof, subject to the following terms and condition:
NOW THEREFORE, the parties agree as follows:
1.

LENDER shall extend to BORROWER a cash loan in the amount Pesos: (Insert
amount in words), (Php__________), receipt of which is hereby acknowledged
by the parties and for which the corresponding promissory note has been issued,
which is made an integral part hereof.

2.

The principal amount shall bear an interest of (insert rate of interest in words)
(___%) per annum.

3.

The BORRIWER shall pay the principal amount plus the interest at the rate
specified under Sec. 2 according to the following schedule of payment:

Payment
First Installment
Second Installment
Third Installment
Total

Due Date
Xxx
Xxx
Xxx

Interest
Xxx
Xxx
Xxx
Xxx

Total Amount Due

Xxx
Xxx
Xxx
Xxx

4.

In case of failure to pay within the stipulated periods, the BORROWER shall be
liable to pay a penalty equivalent to the rate of 1% per month of total amount due
and other damages which the latter maybe entitled under the law, in addition to
the above interest.

5.

This Agreement constitutes the entire understanding between the parties and
may only be modified, altered or amended only with the prior written consent of

the party of or parties against whom, such modification, alteration, or amendment

shall take effect.
IN WITNESS WHEREOF, the parties have executed this Agreement on the date and
place above specified.

LENDER

BORROWER
SIGNED IN THE PRESENCE OF:

________________

___________________

ACKNOWLEDGMENT
REPUBLIC OF THE PHILIPPINES)
)S.S.
BEFORE ME, this (insert date) in (insert place), personally appeared:
Name

CTC No.

Issued at

Issued on

known to me to be the same persons who executed the foregoing instrument consisting
two (2) pages including this Acknowledgment, and who acknowledged to me that the
same is their voluntary and free act and deed.
IN WITNESS WHEREOF, I set my hand and affix my notarial sea on the date and
place above written.
Doc. No. _____;
Page No. _____;
Book No. _____;
Series of ______.

PROMISSORY NOTE

FOR VALUE RECEIVED, I promise to pay to the order of (state name of lender) the sum
of (state amount of loan in words) (Php______________), Philippine Currency, on or
before (state date of payment) at (state place or address where payment is to be made).
Should I fail to pay on the due date, I shall pay interest at the rate of (state rate of
interest) per month and should the legal counsel be retained to enforce collection, I shall
further pay (state rate of penalty) of the total amount due including interest as attorneys
fees. If a case for collection of sum of money is against me, I shall be liable to pay a
penalty of (state rate of additional penalty) and cost of the suit and other expenses.
(State date of note, and place of execution)
Signature of Maker