Document background
The Agreement Between Money Lender And Borrower is a crucial document used when establishing a formal lending relationship in Singapore. It ensures compliance with strict regulatory requirements under the Moneylenders Act 2008 and related legislation, protecting both lender and borrower interests. The agreement covers essential elements including loan amount, interest rates (capped at 4% monthly), administrative fees (maximum 10% of principal), repayment terms, and default provisions. It's particularly important as it provides legal recourse for both parties and ensures transparency in the lending process.
