Free personal loan agreement template

It includes personal information of both the lender and borrower such as their full name, address, contact information, Email Address. Here you have to mention the date that when the loan was borrowed. Also, mention the agreed date of the loan payment. These dates show the valid contract duration. In this section, state the total amount of the loan that the lender has given to the borrower. Moreover, mention the payable amount that borrower will return to the lender.

Next, write down the agreed interest rate. In this part, you have to indicate the mode of repayment. Here you can discuss the terms and conditions governing the loan repayment.

If the mode of repayment is monthly then write down the amount of each installment. In addition, indicate the method of payment such as cash, cheque, etc. If you have included any guarantor then provide his personal information such as his full name, contact information, and Email Address. At the end of the document, the lender or borrower can also include any additional information that they want to include in the agreement.

You may also see the car lease agreement template. A standard loan agreement states some specific conditions for which the loan will be used and it is mandatory to follow them. Using a loan agreement template, the lender and borrower can agree on the loan amount, interest, and repayment schedule.

A lender can use a Loan Agreement in court to enforce repayment if the borrower does not uphold their end of the agreement. A loan agreement is a written contract between two parties — a lender and a borrower — that can be enforced in court if one party does not hold up his or her end of the bargain. The borrower agrees that the money being borrowed will be repaid to the lender at a future date and possibly with interest.

The loan agreement should clearly detail how the money will be paid back and what happens if the borrower is unable to repay. The loan agreement sample below details an agreement between a borrower and a lender. The lender agrees to give the borrower a loan, who agrees to pay back the loan according to the conditions specified. In general, a loan agreement is more formal and less flexible than a promissory note or IOU.

This agreement is typically used for more complex payment arrangements, and often gives the lender more protections such as borrower representations and warranties and borrower covenants.

In addition, a lender can usually accelerate the loan if an event of default occurs, meaning if the borrower misses a payment or goes bankrupt, the lender can make the entire amount of the loan plus any interest due and payable immediately. Here is a simple chart explaining the difference between an IOU, a promissory note, and a loan agreement. For more detailed information view our article on the differences between the three most common loan forms and choose which one is right for you.

While loans can occur between family members — called a family loan agreement — this form can also be used between two organizations or entities conducting a business relationship. Relying only on a verbal promise is often a recipe for one person getting the short end of the stick.