What is a loan agreement?
A loan agreement is a written contract that records the amount lent, the interest rate (if any), and how and when the loan must be repaid.
Business & Startups
Loan Agreement
Generate a loan agreement between a Hong Kong lender and borrower, covering repayment terms, interest, and security, consistent with the Money Lenders Ordinance where applicable.
- Create a personal loan agreement between family or friends
Generate a loan agreement between [Lender Name] and [Borrower Name] for a loan of [Loan Amount], covering the repayment schedule, interest rate (if any), and what happens if the borrower defaults.
- Create a business loan agreement
Generate a business loan agreement between [Lender Name] and [Borrower Company Name] for [Loan Amount], covering interest rate, repayment schedule, and any security offered over business assets.
- Create a loan agreement with a repayment schedule
Generate a loan agreement between [Lender Name] and [Borrower Name] for [Loan Amount] repayable in [Number] instalments of [Instalment Amount], including default and early repayment terms.
Loan Agreement Generator (Hong Kong)
A loan agreement is the written contract documenting the amount lent, interest rate, and repayment schedule when one party lends money to another in Hong Kong. This free Hong Kong loan agreement generator produces agreements for personal loans between family or friends, and business loans between companies or individuals, noting that anyone regularly lending money at interest may need a licence under the Money Lenders Ordinance, which also caps enforceable interest rates. It is designed for individuals lending to family or friends, and businesses extending credit to other businesses, who need clear, enforceable repayment terms. The generator lets you specify interest (if any), a repayment schedule or lump-sum repayment date, and what happens on default, including any security offered. Use it to protect the lender's right to repayment and avoid ambiguity about whether money was a loan or a gift.
Frequently asked questions
Do I need a written loan agreement for lending to family or friends in Hong Kong?
It is not legally required, but strongly recommended, since a written agreement avoids disputes about whether money transferred was a loan or a gift.
Does the Money Lenders Ordinance apply to my loan?
If you regularly lend money at interest as a business, you may need a licence under the Money Lenders Ordinance; genuinely one-off loans between family or friends are generally treated differently.
Is there a limit on interest rates in Hong Kong?
Yes. Under the Money Lenders Ordinance, an interest rate above 60% per annum is a criminal offence, and rates above 48% per annum are presumed extortionate and may not be enforceable by a court.
What should a loan agreement include?
The loan amount, interest rate (if any), repayment schedule or due date, what happens on late payment or default, and any security or guarantee provided.
What happens if a borrower doesn't repay a loan in Hong Kong?
The lender can pursue the debt through negotiation, a formal demand letter, or ultimately court proceedings, and a written loan agreement makes it far easier to prove the debt exists.