PERSONAL LOAN AGREEMENT
This loan agreement (hereinafter the "Agreement") has been entered into in [City where the contract is signed] on [Contract date] between the following parties:
1. PARTIES
1.1 Lender:
[Lender's name]
Personal identification code: [Lender's personal identification code]
Address: [Lender's address]
(hereinafter the "Lender")
1.2 Borrower:
[Borrower's name]
Personal identification code: [Borrower's personal identification code]
Address: [Borrower's address]
(hereinafter the "Borrower")
2. LOAN AMOUNT AND DISBURSEMENT
2.1 The Lender gives the Borrower the sum of money specified in this Agreement (hereinafter the "Loan") and the Borrower undertakes to repay the same sum of money on the terms agreed in the Agreement (Law of Obligations Act (VÕS) § 396 (1)).
2.2 Loan amount: [Loan amount (€)] euros.
2.3 Date of disbursement: [Date of disbursement]. Method of disbursement: [Method of disbursement].
2.4 In the case of disbursement in cash, the Borrower gives the Lender a written confirmation of receipt of the Loan (receipt of performance, VÕS § 95), stating the amount received and the date.
3. REPAYMENT
3.1 Repayment: [Repayment]. Repayment due date: [Repayment due date].
3.2 A repayment is deemed made when the money is received by the Lender. For a repayment made in cash, the Lender gives the Borrower a written confirmation at the Borrower's request (VÕS § 95 (1)).
3.3 If a payment does not cover all amounts that have become collectible, it is applied first to interest, then to late interest and finally to the loan amount.
4. INTEREST
4.1 Interest rate: [Interest rate (% per year, 0 if interest-free)]% per year.
4.2 Interest is calculated on the unrepaid loan amount from the day of disbursement of the Loan until the day of repayment. If the interest rate is 0%, the Loan is interest-free.
4.3 If the Parties have not separately agreed on the time of payment of interest, interest is calculated and must be paid at the end of each calendar year; if the Loan must be repaid before the end of the year, interest is paid upon repayment of the Loan (VÕS § 397 (3)).
4.4 The Parties are aware that interest received on the Loan may be income of the Lender subject to income tax (§ 17 (1) of the Income Tax Act). Each Party is itself responsible for fulfilling its tax obligations.
5. LATE INTEREST
5.1 If a payment deadline is exceeded, late interest at a rate of [Late interest rate (% per year in the event of delay)]% per year on the unpaid amount applies.
5.2 Late interest is calculated from the time the obligation becomes collectible until its proper performance (VÕS § 113 (1)). Late interest is not calculated on interest or on late interest (VÕS § 113 (6)).
6. SECURITY
6.1 The Loan is secured by the following security: [Description of the security]. Any separate agreements necessary for establishing the security are entered into in the form required by law.
7. EARLY REPAYMENT
7.1 The Borrower has the right to repay the loan early, in part or in full, at any time.
7.2 In the event of early repayment, the Borrower pays interest only on the repaid amount until the day of its repayment. No fee is charged for early repayment.
8. LENDER'S RIGHT TO TERMINATE THE AGREEMENT
8.1 The Lender may terminate the Agreement and demand immediate repayment of the Loan if repayment of the Loan in instalments has been agreed and the Borrower is in delay with the repayment of more than two instalments, or with the repayment of one instalment for more than three months, or if the Borrower fails to perform the obligation to pay interest (VÕS § 399 (1)).
8.2 Before terminating the Agreement, the Lender grants the Borrower a reasonable term for remedying the breach.
8.3 Before disbursement of the Loan, the Lender may terminate the Agreement and refuse to disburse the Loan if the Borrower's financial situation has deteriorated to such an extent that the repayment of the Loan is endangered, or if the Borrower has knowingly submitted false information in order to obtain the Loan (VÕS § 399 (2)).
9. BORROWER'S REPRESENTATIONS
9.1 The Borrower confirms that the Borrower is able to repay the Loan on the agreed terms and notifies the Lender without delay of circumstances that may prevent the timely repayment of the Loan.
10. NOTICES
10.1 Notices related to the Agreement which have legal consequences are submitted in writing or in a format which can be reproduced in writing (including by e-mail). A Party notifies the other Party without delay of any change in its address and contact details.
11. DISPUTE RESOLUTION
11.1 Disputes arising from this Agreement are resolved primarily by negotiation and, if no agreement is reached, as follows: [Dispute resolution].
11.2 The Agreement is governed by the law of [Governing law].
12. FINAL PROVISIONS
12.1 Amendments to the Agreement, including changes to the repayment deadlines, are made in writing or in a format which can be reproduced in writing and enter into force once both Parties have confirmed them.
12.2 In the event of the death of a Party, the rights and obligations arising from the Agreement pass to the Party's heirs in accordance with the procedure provided by law.
12.3 If any provision of the Agreement is or becomes invalid, this does not affect the validity of the remaining provisions. The Agreement enters into force once both Parties have signed it and remains in force until the obligations arising from the Agreement have been performed in full.
LEGAL BASIS
This loan agreement is governed by §§ 396–401 of the Law of Obligations Act. A loan granted to a consumer by a professional creditor (consumer credit) is subject to separate and stricter regulation (VÕS §§ 402–421) and requires an activity licence from the Financial Supervision Authority — this Agreement is intended for non-commercial lending between private individuals and does not cover such a situation.