2.

Comprehensive Loan Agreement Template

LOAN AGREEMENT

Parties:

This Loan Agreement [hereinafter referred to “Agreement” ] is entered into on __________________

[the “ Effective Date”], by and between ____________________________________, with an address of
_________________________________, [hereinafter referred to as “The Lender” ] and
__________________________, with an address of,___________________________________,
[hereinafter referred to as “The Loanee” ], whose ID No is ______________ Telephone No
_______________ who resides in Plot No _______ in ________________ Estate and/or whose office is
at House/Building ______________________ Street ________________________Town/City.

WHEREAS;

i. The Lender is a company offering financial services (hereinafter referred to as ‘the Loan’) in
Kenya as permitted under the Laws of Kenya.
ii. The Borrower is desirous of receiving a personal loan not exceeding the amount stated in the
particulars hereinafter from the Lender upon such mutually agreed terms.
iii. The Borrower warrants, declares and guarantees that he is financially capable of servicing the
loan.
iv. If he/she offers certain tangible security in the form of any property or asset as security for the
loan as stated in the particulars hereinafter, the Borrower warrants that he/she is the beneficial
and or the lawful owner of the property or asset which he/she offers herein as security for the
loan, and further that he/she is in a position to pass good title to the Lender as the part of the
terms of securing the repayment of the loan granted under this agreement
v. The Borrower has made an application for the loan, and the Lender has agreed at the voluntary
instigation and application of the Borrower to grant a loan to the Borrower, which the Borrower
hereby accepts and agrees to repay in accordance with the terms and conditions of this
agreement.

NOW THIS AGREEMENT WITNESSES as follows;

IN CONSIDERATION of the Lender from time to time making or continuing loans or advances or granting
any financial facilities or other accommodation or granting time for so long as it may think fit to the
person(s) named as the Loanee(s) in the particulars set out below, the Loanee, unconditionally and
irrevocably admits and declares that he/she has been accorded and thus benefited by the way of
financial facilities from the Lender as is more particularly defined and specified in both the letter of offer
from the Lender to the Loanee, if at all any was issued (hereinafter called the “Letter of Offer”), and the
particulars set out herein shall prevail, and: That he/she is so indebted to the Lender to the tune of the
loan stated in the particulars set out herein, together with such interest fees commission costs charges
as provided for herein and stated in the particulars hereinafter. In pursuance of such acknowledgements
and in fulfillment of such condition precedent as aforesaid the Loanee HEREBY AGREES, DECLARES AND
WARRANTS AS FOLLOWS:

i. The Borrower shall pay and satisfy to the Lenders on demand all sums of money that are
now or at any time after this date shall be owing to the anywhere on any account
whatsoever whether from the Borrower solely or from the Borrower jointly with any other
person or persons or from any firm in which the Borrower may be a partner including the
amount of notes or bills discounted or paid and other loans credits or advances made to or
for the accommodation of either the Borrower solely or jointly or any such firm as aforesaid
or for any moneys for which either the Borrower solely or jointly or any such firm or any
such firm or in any other way whatsoever together with in all cases aforesaid all interest (at
such rate or rates as may from time to time be charged too payable by the Borrower under
the arrangements from time in force between the Borrower and the Lender discount and
other Lenders charges including legal charges as between advocate and client occasioned by
or incident to this or any other security held by or offered to the Lender for the same
indebtedness or by or to the enforcement of any such security.
ii. The Borrower agrees that the Lender’s statement of the Loanee’s account in the Lender’s
last account in any accounting period or such other evidence as the Lender shall provide
shall be good and sufficient evidence in court and elsewhere of the Borrower’s liability
hereunder.
iii. The Borrower agrees that in respect of his liability hereunder the Lender shall have lien on
all securities belonging to the Borrower and now or hereinafter held by the Lender in safe
custody or otherwise howsoever and also on all moneys now or hereinafter standing the
Borrower’s Credit to the Lender.
iv. All payments under this agreement shall be made free of setoff or counterclaims.
v. The giving of time to the Borrower or the neglect or forbearance of the Lender in requiring
or enforcing payment of the said principal money or interest or any other variation of the
provisions of charge shall not in any way prejudice or effect this Charge.
vi. Any notice from or demand by the Lender hereunder shall be deemed to have been duly
given or made if delivered to the Borrower personally or through the Borrower registered
office for the time being or sent by prepaid post letter to the Borrower at the Borrower’s
given address. Any written notice shall be deemed to have received by the Borrower
Fourteen (14) days after posting.

Lender: [Name and Address.

Borrower: [Name and Address]

1. Loan Amount and Purpose

The Lender agrees to lend the Borrower___________ [Loan Amount] for the purpose of [specific
purpose, e.g., personal expenses, business, etc.].

2. Term of Loan
The Borrower shall repay the loan over_____________ [term length], with repayments due on
_______________ [specific dates].

3. Interest Rate
The loan will accrue interest at _______ [rate]% per annum.
4. Collateral
The loan is [secured/unsecured].

If secured, the Borrower agrees to provide [describe collateral].

5. Default Terms
Failure to repay within the agreed terms will result in [specific penalty, interest increases, legal recourse,
etc.].

6. Governing Law
This agreement shall be governed by the laws of [Jurisdiction].

Signatures:
Lender: ________________________ Date: ___________
Borrower: _______________________ Date: ___________

Witness: ________________________ Date: ___________