Loan Agreement and Promissory Note
Republic of the Philippines · Template v0.2.0
This Loan Agreement and Promissory Note (the “Agreement”) is made on August 29, 2026 between Maria L. Santos, an individual with address at 100 Ayala Avenue, Makati City 1226, as “Lender,” and Juan Dela Cruz, an individual with address at 20 Kalayaan Avenue, Quezon City 1100, as “Borrower.”
FOR VALUE RECEIVED, the Borrower unconditionally promises to pay the Lender the principal sum of ₱120,000.00, together with only the interest and lawful charges expressly stated in this Agreement, according to the schedule below.
1. Loan purpose and disbursement
The loan is for this lawful purpose: Purchase of specifically identified equipment for the Borrower's printing business. The stated purpose does not limit the Borrower's payment obligation unless mandatory law requires otherwise.
The Lender shall disburse ₱120,000.00 on August 31, 2026 by bank transfer to the Borrower's nominated account, with transfer confirmation retained by both parties. The Lender's duty to fund and the Borrower's duty to repay are supported by documented transfer, receipt, or other reliable evidence of actual disbursement. No interest accrues before actual disbursement.
2. Written interest and finance-charge disclosure
The unpaid principal bears simple conventional interest at the expressly stipulated rate of 12% per year. Interest is computed on the daily reducing principal balance using actual elapsed days divided by 365, rounded to the nearest centavo for each installment. This written stipulation is intended to satisfy Article 1956 of the Civil Code; no unstated interest, add-on interest, or compounding is agreed.
Assuming timely payments exactly as scheduled and no prepayment or default, the disclosed conventional finance charge is ₱7,758.90, the principal is ₱120,000.00, and the total scheduled payment is ₱127,758.90. There is no origination fee in this Agreement. These figures change only for an actual prepayment, delay, lawful tax, or signed amendment.
The selected rates fall within this generator's standard-review band, but enforceability still depends on the transaction's circumstances and applicable law.
3. Repayment schedule
The Borrower shall make 12 payments monthly, beginning September 30, 2026, by bank transfer to the Lender's account stated in a signed payment instruction. A payment is credited when actually received in cleared funds. Each ordinary payment is applied first to the scheduled interest for that period and then to principal; a lawful payment application required by Article 1253 or another mandatory rule prevails.
Installment 1 — due September 30, 2026; opening principal ₱120,000.00; 30 days; principal ₱10,000.00; interest ₱1,183.56; total payment ₱11,183.56; closing principal ₱110,000.00.
Installment 2 — due October 30, 2026; opening principal ₱110,000.00; 30 days; principal ₱10,000.00; interest ₱1,084.93; total payment ₱11,084.93; closing principal ₱100,000.00.
Installment 3 — due November 30, 2026; opening principal ₱100,000.00; 31 days; principal ₱10,000.00; interest ₱1,019.18; total payment ₱11,019.18; closing principal ₱90,000.00.
Installment 4 — due December 30, 2026; opening principal ₱90,000.00; 30 days; principal ₱10,000.00; interest ₱887.67; total payment ₱10,887.67; closing principal ₱80,000.00.
Installment 5 — due January 30, 2027; opening principal ₱80,000.00; 31 days; principal ₱10,000.00; interest ₱815.34; total payment ₱10,815.34; closing principal ₱70,000.00.
Installment 6 — due February 28, 2027; opening principal ₱70,000.00; 29 days; principal ₱10,000.00; interest ₱667.40; total payment ₱10,667.40; closing principal ₱60,000.00.
Installment 7 — due March 30, 2027; opening principal ₱60,000.00; 30 days; principal ₱10,000.00; interest ₱591.78; total payment ₱10,591.78; closing principal ₱50,000.00.
Installment 8 — due April 30, 2027; opening principal ₱50,000.00; 31 days; principal ₱10,000.00; interest ₱509.59; total payment ₱10,509.59; closing principal ₱40,000.00.
Installment 9 — due May 30, 2027; opening principal ₱40,000.00; 30 days; principal ₱10,000.00; interest ₱394.52; total payment ₱10,394.52; closing principal ₱30,000.00.
Installment 10 — due June 30, 2027; opening principal ₱30,000.00; 31 days; principal ₱10,000.00; interest ₱305.75; total payment ₱10,305.75; closing principal ₱20,000.00.
Installment 11 — due July 30, 2027; opening principal ₱20,000.00; 30 days; principal ₱10,000.00; interest ₱197.26; total payment ₱10,197.26; closing principal ₱10,000.00.
Installment 12 — due August 30, 2027; opening principal ₱10,000.00; 31 days; principal ₱10,000.00; interest ₱101.92; total payment ₱10,101.92; closing principal ₱0.00.
If a due date falls on a day when the agreed payment channel cannot receive or settle funds, payment may be made on the next day that channel is available without changing later schedule dates, unless the delay resulted from the Borrower's failure to arrange a timely available method.