Simple personal loan Agreement between individuals (related or unrelated). This is drafted in favour of the Lender.
The Borrower is to pay: (a) interest at the Interest Rate calculated on the daily balance of the Principal Outstanding from and including the date the Loan or any part of it is first advanced until the Principal Outstanding is fully repaid; and (b) on each Interest Payment Date, all interest accrued but unpaid on the Principal Outstanding as at that Interest Payment Date, without set–off or deduction, including for Taxes.
If any payment defaults occurs, all interest then becomes payable on demand. The Borrower is to pay on demand interest at the Interest Rate on any Other Amount Payable from when it becomes due for payment until it is paid. Any interest which is not paid when due for payment may be capitalised by the Lender at such intervals as the Lender may decide. Interest is payable on capitalised interest calculated as provided and on demand.
If a liability under this agreement becomes merged in a judgment or order, then the Borrower agrees to pay interest to the Lender on the amount of that liability as an independent obligation. This interest accrues from the date the liability becomes due for payment both before and after the judgment or order until it is paid, at a rate that is the higher of the rate payable under the judgment or order and the Interest Rate.
The Borrower is to repay the Principal Outstanding and all Other Amounts Payable.