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A Loan Agreement is a legally binding contract where one party promises to lend money to another party, who agrees to pay it back under specific terms. In New Zealand, these agreements spell out crucial details like the loan amount, interest rates, repayment schedule, and any security offered against the loan.

These contracts protect both lenders and borrowers by clearly stating everyone's rights and obligations. While informal loans between friends might work with a handshake, NZ courts strongly prefer written agreements that comply with the Credit Contracts and Consumer Finance Act, especially for business loans, mortgages, and commercial lending relationships.

Use a Loan Agreement anytime you lend or borrow money in New Zealand, even with family or friends. This written contract becomes especially important for business loans, property purchases, or when lending significant amounts. The agreement protects both parties by clearly documenting the loan terms before money changes hands.

Many NZ lenders require these agreements to comply with banking regulations and the Credit Contracts and Consumer Finance Act. Having one in place helps prevent misunderstandings about repayment terms, reduces the risk of disputes, and makes it easier to enforce the loan if problems arise. It also creates clear evidence of the debt for tax and accounting purposes.

• Money Loan Agreement: Standard template for personal or business loans, covering basic terms and repayment schedules
• Employee Loan Repayment Agreement: Specialized agreement for employer-provided loans with payroll deduction terms
• Cash Loan Contract: Simplified agreement for direct cash lending, often used in private loans
• Mortgage Contract Agreement: Complex agreement for property-secured loans with specific security provisions
• Debt Facility Agreement: Comprehensive commercial lending agreement for business credit lines and ongoing borrowing arrangements

• Banks and Financial Institutions: Primary lenders who draft and issue Loan Agreements for mortgages, business loans, and personal lending
• Business Owners: Both as borrowers seeking finance and as lenders providing vendor financing to customers or other businesses
• Private Lenders: Individuals or companies offering loans outside traditional banking channels, requiring solid documentation
• Legal Professionals: Lawyers who review, draft, and modify agreements to ensure compliance with NZ lending laws
• Corporate Trustees: Organizations managing loan arrangements for investment schemes or structured finance deals

• Party Details: Gather full legal names, addresses, and contact information for all lenders and borrowers
• Loan Specifics: Document the principal amount, interest rate, payment schedule, and term length
• Security Details: List any assets being used as collateral, including property details or business assets
• Payment Terms: Define payment methods, dates, and consequences for late or missed payments
• Legal Requirements: Check Credit Contracts Act compliance, especially for interest rates and disclosure requirements
• Documentation: Our platform generates compliant agreements automatically, ensuring all these elements are properly included

• Party Identification: Full legal names and addresses of lender and borrower, with signing capacity clearly stated
• Loan Terms: Principal amount, interest rate, payment schedule, and total amount payable under CCCFA rules
• Security Provisions: Details of any collateral, guarantees, or security interests being granted
• Default Clauses: Consequences of missed payments, enforcement rights, and dispute resolution processes
• Governing Law: Clear statement that NZ law applies, with jurisdiction for disputes
• Disclosure Statement: Initial disclosure requirements under Credit Contracts Act, including fees and charges
• Termination Rights: Conditions for early repayment and loan cancellation options

A Loan Agreement differs significantly from an Asset Purchase Agreement in several key ways, though both involve financial transactions. While a Loan Agreement creates a temporary lending relationship with repayment obligations, an Asset Purchase Agreement establishes a permanent transfer of ownership.

• Purpose and Outcome: Loan Agreements involve temporary transfer of funds with an obligation to repay, while Asset Purchase Agreements permanently transfer ownership of specific property or business assets
• Payment Structure: Loans require regular repayments with interest over time; asset purchases typically involve one-time or structured payments without interest
• Legal Obligations: Loan Agreements create ongoing debtor-creditor relationships under NZ's Credit Contracts Act; Asset Purchase Agreements fall under property and commercial law
• Security Arrangements: Loans often include security interests over assets; purchases transfer the asset itself as the core transaction