NOTE OF CONTRACT

IMPORTANT INFORMATION FOR BORROWER AND SURETY OR THEIR AGENTS

  1. Do NOT sign or accept this Note of Contract if:
    1. Any part of it is not properly filled in;
    2. The moneylender (or his agent) has not explained the terms of the Note of Contract to you in a language that you understand.
  2. For a loan granted to an individual, the moneylender cannot charge:
    1. An upfront administrative fee of more than 8% of the loan principal;
    2. Interest of more than 3% per month;
    3. Late interest of more than 4% per month; and
    4. Total borrowing cost of more than 100% of the loan principal.
  3. Except for a revolving credit loan, secured loan, or business loan, the repayment of the loan is to be made in equal instalments and at equal intervals of time. The interest to be charged on the loan is to be calculated on a reducing balance basis.
  4. You, as the borrower are advised to repay the principal and interest due to the moneylender promptly on such date as agreed upon between the borrower and the moneylender to avoid having to incur late interest and late fees.
  5. After signing, you should receive a copy of the duly completed Note of Contract and the loan repayment schedule (if the loan is a term loan).
  6. You should receive a receipt for every repayment paid (whether in cash or otherwise) to the moneylender.
  7. So long as your loan is subsisting, you should also receive a statement of account showing the various charges imposed, a list of payments made and the outstanding amount of your loan on every half year by 21 July or 21 January.
  8. All receipts may be issued by the moneylender in electronic form or hardcopy by any means.