Loan Agreement Template
Lend or borrow money on clear terms with a plain-English loan agreement between lender and borrower
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A clear loan agreement you can customize and download in minutes
A loan agreement is the contract a lender and a borrower sign to put a loan of money in writing. This template is a standard, plain-English format suitable for personal and business loans between individuals or companies; it sets out how much is lent, the interest rate, the repayment schedule, what happens if a payment is missed, and how the lender is protected if things go wrong.
Just answer a few simple questions - the lender's and borrower's details, the loan amount, the interest rate, the repayment schedule, and any security - and your personalized loan agreement is generated instantly, ready to download as PDF or Word.
What this loan agreement includes
- Clear identification of the Lender and Borrower
- The loan amount (principal), when it is paid out, and the purpose of the loan
- The interest rate and how interest is calculated (including an interest-free option)
- A repayment schedule: number and amount of instalments, payment frequency, and a final maturity date
- A prepayment clause allowing early repayment without penalty
- A late-payment clause with default interest and a grace period
- A security / guarantee clause (or a clear statement that the loan is unsecured)
- The borrower's representations, a list of events of default, and the lender's right to accelerate and enforce
- A costs clause, a notices clause, a governing-law clause you choose, and standard general terms
- A signature block for both parties and a witness
How to create your loan agreement
1. Open the template and click Generate.
2. Answer the guided questions — the parties, the loan amount, the interest rate, the repayment schedule, and any security.
3. Generate the document — your details are merged into the agreement automatically.
4. Review and download as PDF or Word, then sign (ideally before a witness) and keep a copy of the repayment schedule.
Who is this loan agreement for?
Individuals lending to family, friends or business partners, small businesses lending to or borrowing from others, and anyone who wants a clear written record of a loan instead of an informal promise. Because it is jurisdiction-neutral, you choose the governing law, so the same standard format adapts to your country or state.
Disclaimer: This template is provided for convenience and general information only and is not legal advice. Interest-rate caps, consumer-credit licensing, usury and lending rules vary widely by country, state and loan type, and some loans require registration or a licence. For regulated lending, high-value loans, or loans to consumers, have the final agreement reviewed by a qualified lawyer before signing.
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What's included
- Professional formatting and layout
- Easy customization with guided questions
- Multiple export formats: pdf, docx
- Standard, legally structured clauses
- Instant download after generation
- Professional formatting and layout
- Easy customization with guided questions
- Multiple export formats: pdf, docx
- Legally reviewed and compliant
- Instant download after generation
What is a loan agreement and why do I need one?
A loan agreement is a legally binding contract that records the terms of a loan of money — how much is lent, the interest, how and when it is repaid, and what happens if a payment is missed. Putting a loan in writing protects both sides: the lender has a clear right to be repaid, and the borrower knows exactly what is owed and when. It turns an informal promise, which is hard to enforce, into an enforceable record — which matters even for loans between family or friends.
How is the interest calculated, and can the loan be interest-free?
Interest is charged on the outstanding balance at the annual rate you set, on a simple-interest basis, from the day the loan is paid out until it is repaid in full. As the borrower repays principal, interest is charged on the reducing balance. If you prefer a no-interest loan, set the rate to 0% — the template records it as interest-free and no interest accrues.
What is the repayment schedule and the maturity date?
The repayment schedule is how the loan is paid back — a set number of instalments of a fixed amount, paid on a chosen frequency (for example monthly), starting on the first payment date. The maturity date is the final deadline by which the whole loan, plus any interest and other sums due, must be fully repaid. Setting these clearly avoids disputes about how much is due and when.
Can the borrower repay early, and what happens if a payment is late?
Yes — the borrower may repay all or part of the loan early at any time without penalty, and interest is recalculated on the reduced balance. If a payment is late, the template charges default interest on the overdue amount and gives a short grace period before the miss becomes an event of default. After that, the lender can declare the whole loan immediately due and take steps to recover it.
Does the loan need security or a guarantor?
Not necessarily. The template works for both secured and unsecured loans. If the borrower offers collateral (such as property or a vehicle) or a guarantor, you describe it in the security clause; if not, the clause simply records that the loan is unsecured and the lender relies on the borrower's promise to repay. Security gives the lender something to enforce against if the borrower defaults.
Is this loan agreement valid in any country?
It is written in plain, common-law style and is not tied to one country, so you choose the governing law and courts. Be aware that lending is heavily regulated in many places: there may be interest-rate caps, consumer-credit licensing rules, or usury laws that override what the parties agree. For regulated or consumer lending, or high-value loans, check your local rules — or ask a local lawyer — before relying on it.
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