Loan Agreement

National Bank
Branch: ……..…

This agreement has been entered into by and between the National Bank’s branch of
………………… or any other branch thereof (hereafter “The Bank” or “First Party”),
And …………………………… (hereafter “Borrower” or “Second Party”),
And …………………………… (hereafter “The Guarantor” or “Third Party”).

Recitals:
Whereas the Borrower has applied for a loan for the purpose of …………………………
as guaranteed by the undersigned Guarantor/Guarantors and by other guarantees
mentioned herein; and, Whereas the Bank has agreed to grant the said loan,
Now, therefore, the Parties hereto have agreed to the following:

Article (1):
The recitals hereinabove shall be considered as part and parcel of this contract and
shall be read with it.

Article (2):
In return for all the commitments of and pledges by the Borrower and the
Guarantor, the Bank has agreed to grant the Borrower a loan amounting to:
In Numbers: …………………
In letters: ……………………….

Article (3):
The loan shall be disbursed in lump sum or in installments as per the following
arrangements:
………………………………………………………………………………………… ……………………….

Article (4):
The loan’s amount mentioned in Article (2) above shall be subject to the following
conditions:

1. An annual interest rate of ………% of the amount withdrawn from the loan shall be
deduced on the basis of the daily balance of the amount used from the loan. The
accrued interest shall be paid on an annual/monthly ……… basis.

2. An annual commission rate of ………% shall be deduced and shall be calculated on

the basis of the whole value of the granted loan. It shall be paid in advance in the
first year of the granting of the loan for the period of one year, or alternatively, it
may continue to be paid in advanced for every year or part of a year for the unpaid
loan’s amount in addition to the amount that is not yet withdrawn from the loan if
the loan were still in the process of withdrawal and use.

3. Submitted Guarantees:
…………………………………………………………………………………
…………………………………………………………………………………
…………………………………………………………………………………
………………………………………………………………………………… …………………………….
4. Method of repayment: The Borrower and the Guarantor have undertaken to jointly
and severally repay the amount of the loan that is hereby granted in addition to any
interest rates, commissions or expenses that may incur. Such a repayment shall be
made on the following maturity dates:
…………………………………………………………………………………
…………………………………………………………………………………
…………………………………………………………………………………
………………………………………………………………………………… …………………………….