Shareholder Loan Agreement Template Free

Download this free template for a shareholder loan agreement to officially set up a loan from a shareholder to a company A shareholder (or shareholder) is an individual or institution that buys from a company and legally owns a percentage of it. 1. The shareholder promises to borrow [insert amount] from the company (the «loan»), and the company promises to repay that capital to the shareholder at an address indicated in writing, paying interest on the unpaid principal up to [insert interest rate] per year, calculated annually and not in advance. A shareholder loan agreement, sometimes called a shareholder loan agreement, is a binding agreement between a shareholder and a company that describes the terms of a loan (such as the repayment plan and interest rates) when a company lends money to or owes money to a shareholder. 12. This Agreement constitutes the entire Agreement between the Parties and there are no other points or provisions, either orally or elsewhere. In this agreement, the loan must be used at some point, without guarantee and at the discretion of the company, repayable and convertible (repayment date). Since the loan can be repaid or converted at the company`s choice, this convertible loan is somehow equity and advantageous for the company, depending on the interest rate and/or the conversion price of the shares. This credit agreement does not contain the provisions favourable to the loan, which would generally be included in credit agreements that document the loans of independent third parties. The credit agreement should clearly describe how the money is repaid and what happens if the borrower is unable to repay.

A credit agreement is a legal agreement between a lender and a borrower that defines the terms of a loan. A model credit agreement allows lenders and borrowers to agree on the amount of credit, interest and repayment plan. Relying solely on a verbal promise is often a recipe for a person who gets the short end of the stick. If repayment terms are complicated, a written agreement allows both parties to clearly specify the terms of payment in instalments and the exact amount of interest due.. . . .