This template loan agreement is a contract between the lender and the borrower, regulating the terms of a loan. The template, which is available to download immediately (no sign-up required), can be used for an unsecured loan of money from one person (or company) to another person (or company). The agreement allows a lender to loan money under a range of specific legally-binding terms, and ensures the borrower adheres to a number of obligations including primarily the repayment of capital and payment of interest. The document stipulates that repayments and interest payments must be made in equal installments, with the option to repay the entire loan early, although the wording can be modified easily if you require a different repayment schedule.
The loan agreement template also helps create clarity over the ‘loan balance’ (the amount being lent and subsequent outstanding amounts after repayments), and specifies a number of scenarios which constitute a default, for example the borrower’s failure to pay any interest or capital amount due under the agreement, and the effect of such a default. A number of other standard clauses are present, for example the rights of assignment (being different for the lender and the borrower). The document is designed to be concise and easily expandable if the lender (or borrower) wishes to modify the document for additional requirements.
Contents of the Loan Agreement Template
- Title, date, parties, recitals
- Definitions and interpretation, including defining the loan balance and repayment
- Loan balance, stating the obligation of the lender to lend to the borrower upon signing
- Interest, for example the annual interest and how accrual is calculated
- Repayment, covering repayment dates and early repayment
- Default, defining a default and its effects
- Transfer and assignment, giving the right to assignment to the lender but not the borrower
- Miscellaneous, for example methods of notice, statement of entire understanding, waiver, enforceability, and jurisdiction
FREE Sample of the Loan Agreement Template
Download a FREE sample of this loan agreement template to check that it is what you are looking for before buying.