diff --git a/blockchain_development_integration/pi_network/components/smart_contracts/LoanContract.sol b/blockchain_development_integration/pi_network/components/smart_contracts/LoanContract.sol
new file mode 100644
index 000000000..8b6439be8
--- /dev/null
+++ b/blockchain_development_integration/pi_network/components/smart_contracts/LoanContract.sol
@@ -0,0 +1,24 @@
+// LoanContract.sol
+pragma solidity ^0.8.0;
+
+contract LoanContract {
+    address public lender;
+    address public borrower;
+    uint public loanAmount;
+    uint public interestRate;
+    uint public dueDate;
+
+    constructor(address _borrower, uint _loanAmount, uint _interestRate, uint _dueDate) {
+        lender = msg.sender;
+        borrower = _borrower;
+        loanAmount = _loanAmount;
+        interestRate = _interestRate;
+        dueDate = _dueDate;
+    }
+
+    function repayLoan() public payable {
+        require(msg.sender == borrower, "Only borrower can repay the loan");
+        require(msg.value == loanAmount + (loanAmount * interestRate / 100), "Incorrect repayment amount");
+        // Logic to transfer funds to lender
+    }
+}