Finance

Loan Agreement

消費借貸契約

Personal or corporate loan agreement under Taiwan law — capped at 16% annual interest (Civil Code §205). Spells out principal, rate, repayment, and default consequences.

Language note: the rendered contract body is in Traditional Chinese, the governing language. This English page helps international counterparties understand what they will sign.
Use this templateSee legal basis中文版

Who uses this

  • Loans between friends or family (written form recommended)
  • Shareholder advances to a company
  • SME short-term working capital
  • Repayment schedules for advanced expenses

Key clauses · why they are worded this way

Principal and delivery

Civil Code §474

Loan only forms upon actual delivery of funds, not on signing.

Interest rate

Civil Code §205, §206

Cap at 16%/year; list the formula explicitly.

Repayment plan

Civil Code §478

Installments, grace period, due dates.

Default

Civil Code §250, §253

After N days overdue, full balance falls due; enforcement available.

Common pitfalls

  • Rate > 16% annually → unenforceable on the excess (Civil Code §205)
  • Interest deducted upfront → §206 prohibits this
  • No repayment date → demand may be made anytime (§478)
  • Verbal agreement without delivery of funds → loan is not formed (§474)

Statutes referenced

民法 §474民法 §205

FAQ

Do I still need a contract when lending to family?

Strongly recommended. Trust aside, written contracts are your only evidence later. Ours is §205-compliant out of the box.

What if the borrower defaults?

Standard flow: certified letter → payment order (支付命令) → civil litigation → enforcement. Our e-signature + hash + IP audit trail is admissible evidence.

Ready?

Complete a three-minute form, cite Taiwan statutes automatically, then collect both e-signatures with an IP and signature-hash audit trail.

Create Loan Agreement

Legal notice

DocGen TW provides document automation and risk hints. We are not a law firm and do not replace legal advice. Our contract templates and risk-check results reflect general situations under current Taiwan law and are for general reference only. For large amounts, cross-border matters, litigation, or custom clauses, ask a partner lawyer (Chinese form) to review them. DocGen TW accepts no legal liability for disputes arising from use of the platform.