Loan Agreement Template
Loan Agreement
11 sections · 21 fields to fill · free, nothing uploaded
LOAN AGREEMENT
Date:
Between:
Lender:
Address:
AND
Borrower:
Address:
1. LOAN AMOUNT
The Lender agrees to loan the Borrower the sum of (the "Principal Amount").
2. PURPOSE
The loan is provided for the following purpose:
3. INTEREST RATE
- Interest Rate: % per annum
- Interest Calculation: interest
- Interest Accrual: Starting from
4. REPAYMENT TERMS
Repayment Schedule:
- First Payment Due:
- Payment Frequency:
- Payment Amount:
- Number of Payments:
- Final Payment Due:
Payment Method:
5. PREPAYMENT
The Borrower prepay this loan without penalty.
6. LATE PAYMENT
Late payments shall incur:
- Grace Period: days
- Late Fee:
- Default Interest Rate: % if payment is overdue
7. SECURITY/COLLATERAL
This loan is:
- Unsecured / Secured by:
If secured, the Borrower grants the Lender a security interest in .
8. DEFAULT
The Borrower will be in default if:
- Payment is not made within of due date
- Borrower becomes bankrupt or insolvent
9. REMEDIES UPON DEFAULT
Upon default, the Lender may:
- Declare the entire balance immediately due and payable
- Take possession of collateral (if secured loan)
- Pursue legal action for collection
- Charge all collection costs and legal fees to Borrower
10. REPRESENTATIONS
The Borrower represents that:
- They have the legal capacity to enter this agreement
- They will use the loan funds for the stated purpose
- All information provided is true and accurate
11. GOVERNING LAW
This agreement shall be governed by applicable laws.
SIGNATURES:
Lender:
Signature: _______________________
Name:
Date: _______________________
Borrower:
Signature: _______________________
Name:
Date: _______________________
WITNESS (Optional):
Signature: _______________________
Name:
Date: _______________________
Runs in your browser — nothing is uploadedNo signup, no email, no watermarkYour answers are saved in this browser only
What is a Loan Agreement?
A Loan Agreement — also called a personal loan contract — is a financial document used when money is being lent, owed, paid, guaranteed or invested and both sides need the terms recorded. In short: personal or business loan.
It is typically signed by lenders, borrowers, freelancers, small businesses and anyone settling a debt. Money documents are enforceable when the amount, the schedule and the consequence of non-payment are unambiguous. Most disputes come down to a figure that was never written down or a due date that was left implied.
When you need one
- You are about to personal or business loan and want the terms recorded before anyone relies on them.
- The other side has proposed a loan agreement and you want to see what a balanced version looks like first.
- A previous arrangement was verbal, and something has now happened that makes writing it down urgent.
- You need a starting point you can adapt rather than a blank page — the structure matters more than the prose.
What this Loan Agreement template includes
The template is structured around 11 sections. Each one exists for a reason — if you delete one, delete it deliberately.
- 01Loan Amount
- 02Purpose
- 03Interest Rate
- 04Repayment Terms
- 05Prepayment
- 06Late Payment
- 07Security/Collateral
- 08Default
- 09Remedies Upon Default
- 10Representations
- 11Governing Law
Information you will need
Gather these before you start. Every one of them appears in the finished document, and a missing value is the most common reason a self-drafted loan agreement fails to do its job.
- Lender Name
- Person/company lending
- Borrower Name
- Person/company borrowing
- Principal Amount
- Loan amount
- Interest Rate
- Annual interest rate %
- Repayment Schedule
- Payment terms
How to write a Loan Agreement
- 1
Read the full template
Read the complete Loan Agreement on this page before you use it, so you know what every clause commits you to.
- 2
Gather your details
Collect the names, addresses, dates and amounts listed in the "What you will need" section — every square-bracketed placeholder needs a real value.
- 3
Fill in the blanks on this page
Type your answers into the form beside the template and they are written into every clause that uses them as you go. Nothing is uploaded — the document is assembled inside your own browser.
- 4
Download the finished document
Download your completed Loan Agreement as a PDF or an editable Word file, or copy the text. There is no signup and no watermark.
- 5
Sign and store it
Sign it — electronically with the free Sign PDF tool, or in ink where the document type requires it — and give every party a copy.
Mistakes to avoid
No repayment schedule
State the amounts, the dates and the method. "When he can" is not a term a court can enforce.
Ignoring interest-rate limits
Most jurisdictions cap interest on private loans. Exceeding the cap can render the interest — occasionally the whole debt — unenforceable.
No default clause
Say what counts as default, whether the balance becomes immediately payable, and who pays collection costs.
Lending to family on a handshake
The relationships most likely to produce an undocumented loan are exactly the ones most damaged when it goes wrong.
Jurisdiction note. Consumer credit, usury and debt-collection rules are local and strictly enforced. Regulated lending needs professional advice; so does anything secured against a home. This template is general-purpose information, not legal advice.
Loan Agreement FAQs
Is this Loan Agreement template free to download?
Yes. The complete text is published on this page — no email required. Fill in the blanks on the page, then copy it or download it as a PDF, Word (.docx) or plain-text file. There is no watermark and no usage limit.
Can I fill in this Loan Agreement template online?
Yes. Every square-bracketed blank in the template above is an editable field. Type your answer once and it is written into every clause that uses it, and the document beside the form updates as you type. When you are done, download the completed PDF or Word file. It all runs inside your browser — the document is never uploaded, and your answers are saved only in this browser so you can come back and finish later.
What information do I need to complete a Loan Agreement?
At minimum: lender name, borrower name, principal amount, interest rate. The form on this page lists every blank the document contains and counts how many are still empty. Every placeholder in [square brackets] needs replacing before the document is signed — an unfilled bracket is the most common defect in a self-drafted document.
What should a Loan Agreement include?
This template is structured around 11 sections: loan amount, purpose, interest rate, repayment terms, prepayment and others. Those are the provisions that make the document do its job; anything you delete, delete deliberately.
Is a Loan Agreement legally binding?
Money documents are enforceable when the amount, the schedule and the consequence of non-payment are unambiguous. Most disputes come down to a figure that was never written down or a due date that was left implied. Consumer credit, usury and debt-collection rules are local and strictly enforced. Regulated lending needs professional advice; so does anything secured against a home.
Can I edit this Loan Agreement template?
Yes, in three ways. Fill in the blanks on this page and download the result; or download the Word version and rewrite it in Word, Pages or Google Docs; or open it in the LegalDraft AI app, where the AI can rewrite any individual clause to be stricter, simpler or more balanced and review the finished document for risk before you sign.
Do I need a lawyer for a Loan Agreement?
Consumer credit, usury and debt-collection rules are local and strictly enforced. Regulated lending needs professional advice; so does anything secured against a home. For routine, low-value arrangements a carefully completed template is usually proportionate. The larger the sum, the more one-sided the terms, or the more the document depends on local statute, the stronger the case for professional review.
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