Sample Loan Agreement
Put a loan between a lender and borrower in writing with a simple, plain-English loan agreement; set the amount, interest rate, term and monthly repayment
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A simple, ready-to-use 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 clean, plain-English sample that covers the essentials of a straightforward loan: how much is lent, the interest rate, the loan term, the monthly repayment (split into principal and interest), and what happens if a payment is late or the borrower defaults.
Just answer a few simple questions - the lender's and borrower's details, the loan amount and interest rate, the term, and the monthly repayment - 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 and an Effective Date
- The loan amount and the monthly interest rate
- The loan term (in months or years) and a monthly repayment amount, split into principal and interest
- A late-payment clause with a grace window and an optional late fee
- A default clause letting the lender accelerate the full balance if a default is not cured
- A prepayment clause confirming no penalty for early payment
- Representations and warranties, severability, waiver, and a legal-fees clause for the successful party in a dispute
- A legal-and-binding clause and a governing-law and jurisdiction clause you choose
- An entire-agreement clause and a clean signature block for both parties
How to create your loan agreement
1. Open the template and click Generate.
2. Answer the guided questions; the parties, the loan amount and interest rate, the term, and the monthly repayment.
3. Generate the document; your details are merged into the agreement automatically.
4. Review and download as PDF or Word, then sign and keep a copy of the repayment terms.
Who is this loan agreement for?
Individuals lending to family, friends or business partners, and small businesses that want a simple written record of a loan instead of an informal promise. Because it is jurisdiction-neutral, you choose the governing law, so the same straightforward format works whether the parties are in the same place or in different states or countries.
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 by country, state and loan type. 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
- Simple, plain-English clauses covering the loan essentials
- 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 are the interest rate and repayment set up in this template?
You set a monthly interest rate that accrues on the loan, choose a loan term in months or years, and set a fixed monthly payment. The payment is shown split into a principal portion and an interest portion, so both parties can see how each payment is applied. Payments fall due on a day of the month you choose.
What happens if a payment is late or the borrower defaults?
A payment is treated as late once it is a set number of days past its due date, and the lender may then charge an optional late fee. If the borrower defaults and does not cure it within a reasonable time, the lender can accelerate the loan — declaring the entire remaining principal and accrued interest immediately due and payable — and, in a dispute, recover legal fees as the successful party.
Can the borrower repay the loan early?
Yes. The template includes a prepayment clause confirming the borrower will not be penalized for early payment. The borrower can pay the loan off ahead of schedule without a prepayment penalty or premium.
Which law governs the agreement?
By default the agreement is governed by the state or country where both parties reside or do business. If the parties are in different states or countries, you name the governing law that applies. This keeps the template usable across locations while still giving a clear answer if a dispute arises.
Is this loan agreement valid in any country?
It is written in plain English and is not tied to one country — the clause even notes it is intended to be binding in the United States and throughout Europe — so you choose the governing law and courts. Be aware that lending is heavily regulated in many places, with interest-rate caps, consumer-credit licensing, or usury laws that can 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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