This agreement is ideal for either individuals or businesses
whereby money is being loaned to the Borrower and
is to be paid back to the Lender in instalments, with or without interest.
Why have a Guarantor?
Where there is a Guarantor, a third party to the loan agreement (the Guarantor) will guarantee payment on behalf of the Borrower
, agreeing to be held liable
should the Borrower fail to repay the loan in terms of the agreement. This provides added security
for the Lender in
that he can proceed against the Guarantor in cases where he is not able to get payment from the Borrower.
This agreement contains the following clauses:
5. Indebtedness and Repayment
9. Governing Law and Jurisdiction