Document background
The Simple Interest Loan Agreement is designed for use in Hong Kong when parties wish to enter into a straightforward lending arrangement where interest is calculated only on the principal amount, not on accumulated interest. This document is commonly used for both business and personal loans, providing a clear framework for lending transactions that comply with Hong Kong's Money Lenders Ordinance (Cap. 163) and related financial regulations. It includes essential provisions for loan amount, interest calculation, repayment terms, security arrangements (if any), and default scenarios. The agreement is particularly suitable for situations where transparency in interest calculations is prioritized and parties prefer a straightforward approach to lending, whether for corporate financing, business expansion, or personal loans.
