Director Loan Agreement Template – UK

Disclaimer

The information provided is intended solely as a general example for illustrative purposes related to lending arrangements between directors and companies. It does not constitute legal advice and should not be relied upon as a substitute for consulting a qualified attorney specializing in corporate or contractual law. Laws and regulations may vary depending on the jurisdiction, and adjustments may be required to ensure compliance with local legal requirements. The use of this example is the sole responsibility of the user, and we assume no liability for any errors, omissions, or consequences arising from its use without professional review.

Please note: This is a sample Director Loan Agreement template for illustrative purposes only. Actual terms may vary based on specific agreements and applicable laws.

Director Loan Agreement Sample (UK)

Parties Involved:

Lender (Company): ABC Ltd
Address: 123 Business Park, London, SW1A 1AA

Borrower (Director): John Doe
Address: 45 Elm Street, London, NW1 5AA

Loan Details:

The lender agrees to advance a loan of GBP 50,000 to the borrower under the terms specified herein. The loan shall be used solely for permissible business purposes.

Repayment Terms:

The borrower shall repay the loan in monthly installments of GBP 2,000 over 25 months, commencing on the 1st of the month following the drawdown, with interest at a rate of 3% per annum.

Interest:

Interest shall accrue on the outstanding principal amount daily, and shall be payable together with the installment payments.

Collateral:

The loan is unsecured, or alternatively: The loan is secured against the director’s shares in ABC Ltd, with details as provided in Schedule A.

Governing Law:

This agreement shall be governed by and construed in accordance with the laws of England and Wales. Disputes shall be resolved in the courts of London.

Additional Provisions:

• The borrower warrants that the information provided is true and accurate.
• Any amendments to this agreement must be made in writing and signed by both parties.
• The lender shall have the right to demand immediate repayment if the borrower breaches any terms.

London, ______________________