Sample Credit Agreement in the Philippines

In today`s financial environment, credit agreements are vital for businesses and individuals alike. It is crucial to understand the terms and conditions of a financial contract before signing it, which is why a sample credit agreement can be helpful. In this article, we will provide an overview of credit agreements in the Philippines and a sample credit agreement for reference.

What is a credit agreement?

A credit agreement is a legal document that outlines the terms and conditions of a loan, including the amount borrowed, interest rate, payment schedule, and any collateral required. It is a binding contract between the borrower and lender and serves as a reference point throughout the loan period.

Credit agreements are essential for businesses and individuals who need to borrow money for various purposes, such as expanding their operations, purchasing equipment or property, or paying for personal expenses.

Sample Credit Agreement in the Philippines

Here is a sample credit agreement that outlines the essential elements of a typical credit agreement in the Philippines:

Credit Agreement

Borrower: [Name of borrower]

Lender: [Name of lender]

Date: [Date of agreement]

Loan Amount: [Amount in numbers and words]

Interest Rate: [Rate in percentage]

Collateral: [Details of any collateral provided]

Repayment Schedule:

The borrower will repay the loan in [Number] equal instalments on the [Date] of each month, starting on [Date of first payment].

Late Payment:

If the borrower fails to make any payments on the agreed due date, the lender may charge a late payment fee of [Amount] or [Percentage] interest on the overdue amount.


The borrower may prepay the loan, in whole or in part, at any time without incurring any penalty.


If the borrower defaults on the loan, the lender may demand immediate repayment of the outstanding amount.

Governing Law:

This agreement shall be governed by and construed in accordance with the laws of the Philippines.


This agreement may be amended or modified in writing by mutual consent of the parties.


Credit agreements are a vital part of borrowing money and should be carefully reviewed and understood before signing. By providing a sample credit agreement for reference, we hope that businesses and individuals in the Philippines can have a better understanding of the terms and conditions of a typical credit agreement. It is always advisable to seek legal advice before entering into any financial contracts to ensure that all terms are fair and beneficial to both parties.


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