Document background
The Loan Agreement and Promissory Note is a fundamental document in Philippine financial transactions, used when one party extends credit to another with a formal promise of repayment. This document is essential for both institutional lending and private loan arrangements, combining comprehensive loan terms with a legally binding promise to pay. It must comply with Philippine banking regulations, particularly the Truth in Lending Act and Central Bank guidelines regarding interest rate disclosures. The document is commonly used by banks, financial institutions, and private lenders for various purposes including business expansion, asset acquisition, or personal financing. Its dual nature as both a loan agreement and promissory note provides additional security to the lender while ensuring clear terms for the borrower.
