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This document serves as a standardized Simple Interest Loan Agreement template designed specifically for use in the Philippines. It is particularly useful for financial institutions, businesses, and individuals engaging in lending transactions where interest is calculated solely on the principal amount, without compounding. The agreement ensures compliance with Philippine banking regulations, including the Civil Code of the Philippines, Truth in Lending Act, and relevant BSP circulars. It can be used for various loan purposes, from business expansion to personal financing, and includes all necessary provisions for loan amount, interest calculation, repayment terms, security arrangements, and default scenarios. The template is structured to accommodate both corporate and individual borrowers while maintaining the formal requirements for enforceability under Philippine law.

1. Parties: Identifies and provides complete details of the Lender and Borrower, including their legal names, addresses, and tax identification numbers as required by Philippine law

2. Background: Briefly explains the context of the loan and the parties' intention to enter into this agreement

3. Definitions: Defines key terms used throughout the agreement for clarity and legal certainty

4. Loan Amount and Purpose: Specifies the principal amount being lent and the intended use of the loan proceeds

5. Interest Rate: Details the simple interest rate to be applied, calculation method, and compliance with Philippine banking regulations

6. Term and Repayment: Specifies the loan duration and repayment schedule, including payment amounts, dates, and method of payment

7. Security: Details any collateral or security provided for the loan

8. Representations and Warranties: Standard declarations by the Borrower about their legal capacity and financial condition

9. Events of Default: Lists circumstances that constitute default and the consequences thereof

10. Remedies: Outlines the Lender's rights and remedies in case of default

11. Governing Law and Jurisdiction: Specifies Philippine law as governing law and designates jurisdiction for dispute resolution

12. Notice Provisions: Details how formal communications between parties should be made and delivered

13. Execution: Signature blocks and execution formalities compliant with Philippine requirements