Unsecured Loan Agreement With A Guarantor

An Unsecured Loan Agreement with Guarantor (also known as a personal loan) is a legally binding agreement made between the Lender, the Borrower and the Guarantor, which governs the terms and conditions under which the loan is to operate.

An Unsecured Loan Agreement with Guarantor (also known as a personal loan) is a legally binding agreement made between the Lender, the Borrower and the Guarantor, which governs the terms and conditions under which the loan is to operate. In terms of this agreement, there is no collateral (hence it is unsecured) and this means that there is no security for the Lender and therefore no entitlement over any of the Borrower’s assets in the event of default on the part of the Borrower.

The Guarantor provides some security to the Lender in that he guarantees payment of the loan on behalf of the Borrower should the Borrower default on his payments to the Lender. In these cases, the Lender can proceed against the Guarantor should he not be able to get payment from the Borrower.

This agreement is drafted specifically for individuals and/or businesses where money is being loaned to the Borrower and paid back by way of instalments, either with or without interest. It is a comprehensive agreement containing the essential clauses necessary to ensure that both parties’ interests are protected.

This agreement contains the following clauses:

1. Definitions
2. Interpretation
3. Guarantee
4. Loan
5. Indebtedness and Repayment
6. Acceleration
7. Notices
8. Breach
9. Governing Law and Jurisdiction
10. Counterparts
11. Signatories

Related Documents:

• Unsecured Loan Agreement