LOAN AGREEMENT
This Agreement is made on 15 September 2026 between Olivia Chen and Marcus Lee.
1. Loan
The Lender agrees to lend the Borrower AUD 25,000. The Lender will transfer the funds to the Borrower's nominated business account on 15 September 2026.
2. Interest
Interest accrues at 5.5% per year, calculated daily on the outstanding balance and charged monthly. If no interest is intended, state: This loan is interest-free. Interest and fees must not exceed limits imposed by applicable law.
3. Repayment
The Borrower will repay:
- **AUD 1,102.39** on **the first day of each month from 1 November 2026**; and
- all outstanding principal and interest by **1 October 2028**.
Payments will be applied first to lawful costs, then interest, then principal.
4. Early repayment
The Borrower may repay all or part of the Loan early without charge.
5. Borrower promises
The Borrower confirms that the information supplied to the Lender is materially accurate and will promptly notify the Lender of circumstances likely to prevent repayment.
6. Default
A default occurs if the Borrower fails to pay an amount within 14 days after it is due, materially breaches this Agreement and does not remedy the breach after notice, or becomes insolvent. Following default, the Lender may demand payment of outstanding sums where permitted by law.
7. Security
This Loan is unsecured. Separate registration or security documents may be required for enforceable security.
8. Notices
Notices must be in writing and delivered to the address or email last notified by the receiving party.
9. Governing law
This Agreement is governed by the law of Victoria, Australia. Consumer credit, licensing, disclosure and interest-rate rules may override these terms.
10. Payment administration
The Borrower must make payments by electronic transfer to the account nominated by the Lender. If a payment date is not a business day, payment is due on the next business day. The Lender will provide a receipt and, on request, a statement of principal, interest and payments received.
11. Late payment and enforcement
No automatic penalty rate applies in this worked sample. After a missed payment, the Lender must give written notice allowing 14 days to remedy before acceleration. Reasonable external enforcement costs may be recoverable only to the extent permitted by law. The parties should obtain advice if consumer-credit legislation may apply.
12. Changes, waiver and severability
A change must be in writing and signed by both parties. Delay in exercising a right is not a waiver. If a provision is invalid, it is modified or severed only to the extent required, and the remaining terms continue.
Schedule 1 - Worked sample loan
Lender: Olivia Chen, 31 River Road, Richmond VIC 3121.
Borrower: Marcus Lee, 8 Station Street, Hawthorn VIC 3122.
Principal: AUD 25,000, transferred on 1 October 2026.
Purpose: purchase of equipment for the Borrower's photography business.
Interest: 5.5% per year on the daily outstanding balance, charged monthly.
Repayment: 24 monthly instalments of AUD 1,102.39 starting 1 November 2026, with any final adjustment due on 1 October 2028.
Early repayment: permitted at any time without charge.
Security: unsecured. No charge, mortgage or guarantee is granted.
Governing law: Victoria, Australia.
Signatures
Lender: ____________________ Date: __________
Borrower: ____________________ Date: __________