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The Small Credit Agreement is designed for use in the Philippine lending market where there is a need for standardized, compliant documentation for smaller lending transactions. This document type is particularly relevant for personal loans, small business loans, and consumer credit facilities where the loan amount is relatively modest. It incorporates all requirements under Philippine banking regulations, including the Truth in Lending Act, BSP circulars, and consumer protection laws. The agreement is structured to provide comprehensive coverage of loan terms while remaining accessible to individual borrowers. It includes mandatory disclosures of interest rates, fees, and charges, along with clear repayment terms and conditions. This document is essential for financial institutions operating in the Philippines that offer small-scale lending products, ensuring both regulatory compliance and practical utility.

1. Parties: Identification of the Lender and Borrower with complete details as required by Philippine law

2. Background: Brief context of the credit arrangement and purpose of the loan

3. Definitions: Key terms used throughout the agreement including 'Interest Rate', 'Payment Date', 'Default', etc.

4. Loan Amount and Purpose: Specification of the credit amount and its intended use

5. Interest Rate and Charges: Detailed breakdown of interest rates, processing fees, and other charges as required by the Truth in Lending Act

6. Repayment Terms: Payment schedule, method of payment, and consequences of early or late payment

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

8. Representations and Warranties: Standard declarations by the borrower regarding their capacity to enter into the agreement

9. Events of Default: Circumstances constituting default and consequences thereof

10. Termination: Conditions and process for terminating the agreement

11. Governing Law: Specification of Philippine law as governing law and jurisdiction