Loan Agreement in Singapore: Template and Key Clauses (2026)

A loan agreement in Singapore is the contract that records a loan: who lends, who borrows, how much, at what interest, and how and when it is repaid. It can be a simple document between a company and its director, a facility between businesses, or a secured loan backed by assets. The clauses that matter most are repayment, interest, security and what counts as default, because those decide what happens if the borrower cannot pay. There is also one threshold question to clear first: whether the lender needs a moneylending licence. This is general information, not legal advice. Interest rules, licensing and the enforceability of specific terms depend on your facts and can change, so confirm the current position before relying on a clause. ## The Moneylenders Act question The Moneylenders Act regulates the business of lending money and requires a licence for moneylenders. Importantly, it carves out categories that are not treated as moneylenders, which commonly include banks and finance companies, and certain loans to companies and between companies. So a one-off loan between businesses, or from a shareholder to the company, is usually outside the licensing regime, while anyone carrying on a lending business to individuals needs to check the Act carefully. Get this wrong and the loan can be unenforceable and the lender exposed to penalties. If there is any doubt about whether the lender is acting as a moneylender, take advice before lending. <!-- [VERIFY] the exact excluded and exempt moneylender categories under the current Moneylenders Act before relying on a specific exemption --> ## A clause by clause skeleton Use this as a structure to adapt, not a finished document. ``` LOAN AGREEMENT Parties: [Lender name and address] and [Borrower name and address] Date: [date] 1. THE LOAN The Lender lends the Borrower [amount] (the Loan), to be drawn [in full on the date below / in tranches as set out in clause [x]]. 2. PURPOSE The Borrower will use the Loan only for [stated purpose]. 3. INTEREST Interest accrues on the outstanding Loan at [rate] per year, calculated [method], payable [frequency]. [Default interest of [rate] applies to overdue amounts.] 4. REPAYMENT The Borrower repays the Loan [in instalments per the schedule in Schedule 1 / in full on [date]]. Payments are applied first to interest, then to principal. 5. PREPAYMENT The Borrower may repay early [without penalty / on [notice] with any fee set out in clause [x]]. 6. SECURITY The Loan is [unsecured / secured by [charge / guarantee / pledge] as set out in Schedule 2]. Security documents are signed on or before drawdown. 7. REPRESENTATIONS The Borrower confirms it has power to borrow, the loan does not breach any other agreement, and the information it gave is accurate. 8. COVENANTS The Borrower will [provide financial information, not take on further debt above [limit], keep required consents, notify the Lender of any default]. 9. EVENTS OF DEFAULT If the Borrower fails to pay, breaches a term, becomes insolvent or a representation proves false, the Lender may demand immediate repayment and enforce any security. 10. COSTS The Borrower pays the Lender's reasonable costs of preparing and enforcing this agreement. 11. GOVERNING LAW Governed by Singapore law. Disputes resolved by [the courts of Singapore / arbitration in Singapore]. Schedule 1: Repayment schedule Schedule 2: Security

- Leaving interest vague or unstated, which can mean the lender recovers no interest.
- Taking security but failing to register a company charge with ACRA in time, so it loses priority if the borrower is wound up.
- A default-interest rate set so high it reads as a penalty, which a court may not enforce.
- No written agreement at all for a loan between a director and the company, which also raises company-law and tax questions. ## Stamp duty and formalities Whether stamp duty applies depends on the nature of the instrument and any security involved, so check the current position with IRAS rather than assuming. Electronic signing of a loan agreement is generally recognised in Singapore under the Electronic Transactions Act, though some documents have formality requirements, so confirm before relying on an e-signature for security documents. <!-- [VERIFY] current IRAS stamp duty treatment of loan and security instruments before stating a figure or that none applies --> ## Keeping the agreement and its security together A loan is rarely one document. There is the agreement, the repayment schedule, the security documents, the ACRA registration, the guarantees and any variation if terms are rescheduled. When these scatter across files and inboxes, the lender can lose track of what is owed, what secures it, and what the current terms are. Drafting an agreement like this, checking an interest or default clause for enforceability, editing a term in plain language and holding every version with its date can live in one AI workspace tuned to how your company contracts. Adira is built around that single workspace, running on Claude, with per-seat pricing shown up front and a 7-day trial, India-first and built to work across jurisdictions. You can see more at [its site](https://adiralaw.com). For a simple loan the skeleton above is enough on its own. The point worth taking is that the agreement and its security are easier to trust when they stay in one place and in step.