Borrower’s Breach and Liability Clause Samples

Borrower’s Breach and Liability. 1. If the borrower fails to repay the principal of the loan (including extensions) on time, a penalty interest rate of 50% will be charged from the date of default, calculated at the interest rate agreed in the loan contract. 2. If the borrower fails to pay the loan interest and penalty interest on time, compound interest will be charged at the penalty interest rate. 3. If the loan is not used according to the contract, a penalty interest rate of 100% will be charged during the period of misappropriation for the loan that has been misappropriated. 4. If the borrower repays the loan early, it must be approved by the lender; the lender has the right to charge interest on the early repaid loan according to the term and interest rate specified in this contract. However, with the lender’s consent, interest may be charged based on the agreed rate and the actual number of days.