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The Short Term Loan Agreement is essential for documenting temporary lending arrangements in South Africa, typically for periods under 12 months. This document is crucial for both individual and business lending, ensuring compliance with the National Credit Act 34 of 2005 and other relevant South African legislation. It's commonly used by financial institutions, alternative lenders, and businesses providing short-term financial solutions. The agreement includes mandatory provisions for consumer protection, interest rate calculations, repayment terms, and default procedures. It's particularly important in the current South African financial landscape where short-term lending is heavily regulated to protect borrower interests while maintaining lender security.

1. Parties: Identification and details of the Lender and Borrower, including registration/ID numbers and addresses

2. Background: Context of the loan agreement and relationship between the parties

3. Definitions: Definitions of key terms used throughout the agreement

4. Loan Amount and Purpose: Specification of the loan amount and its intended use

5. Interest Rate: Interest rate, calculation method, and compliance with usury laws

6. Repayment Terms: Payment schedule, method of payment, and duration of the loan

7. Security: Details of any security or collateral provided for the loan

8. Representations and Warranties: Statements of fact by the borrower regarding their financial position and ability to repay

9. Events of Default: Circumstances constituting default and consequences thereof

10. Remedies: Lender's rights and remedies in case of default

11. Costs: Allocation of costs, fees, and charges related to the loan

12. Notices: Communication methods and addresses for formal notices

13. General Provisions: Standard legal clauses including governing law, jurisdiction, and whole agreement