South Africa
Loan Agreement
R549
Create a clear loan agreement recording the loan amount, repayment terms, interest, default consequences, security, suretyship, early settlement, and the rights and obligations of the lender and borrower.
A Loan Agreement is used where one party lends money to another and both parties want a written record of the amount advanced, repayment period, interest, default provisions, security, and enforcement rights.
South African legal context (2026 checklist)
Some loans may fall under the National Credit Act. Where the Act applies, the lender may have registration, disclosure, interest, fee, affordability, and pre-enforcement notice obligations. The agreement should also deal with prescription, default interest, legal costs, security, and whether a surety is required.
- South African common law of contract
- National Credit Act 34 of 2005
- Prescription Act 68 of 1969
- Conventional Penalties Act 15 of 1962
- Electronic Communications and Transactions Act 25 of 2002
- Protection of Personal Information Act 4 of 2013
- Magistrates’ Courts Act 32 of 1944
- Superior Courts Act 10 of 2013
Use this as a starting point only. Verify current gazetted amendments, tribunal rules, and SARS / DOL circulars that may apply to your matter.
Typical questions we'll walk you through
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Who is the lender?
Who is the borrower?
What amount is being lent?
When will the loan be advanced?
Will interest be charged?
How and when must the loan be repaid?
What happens if the borrower defaults?
Will there be security or a surety?
Can the borrower repay early?
Is the loan personal, family, business, shareholder-related, or commercial?
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