Loan Agreement Template
A simple loan agreement between a lender and borrower covering the amount, interest, and repayment schedule.
What this template includes
- ✓Lender and borrower details
- ✓Loan amount, interest, and repayment schedule
- ✓Prepayment, late payment, and default
- ✓Optional collateral, legal fees, and successors
- ✓Notices, e-signatures, and signatures
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LOAN AGREEMENT
This Loan Agreement (the "Agreement") is made on between:
Lender: , located at ("Lender"); and
Borrower: , located at ("Borrower").
1. LOAN AMOUNT
The Lender agrees to lend the Borrower the principal sum of (the "Loan"). The Loan will be provided to the Borrower on by .
2. INTEREST
The Loan will accrue interest at a rate of % per , calculated on the outstanding balance. (If no interest applies, state: This is an interest-free loan.)
3. REPAYMENT
The Borrower agrees to repay the Loan (plus any interest) as follows:
For example: monthly installments of , due on the of each month, starting on , until fully repaid.
Payments will be made by .
4. PREPAYMENT
The Borrower may repay the Loan early, in full or in part, at any time without penalty. Early payments will reduce the outstanding principal.
5. LATE PAYMENT
If any payment is more than days late, a late fee of may be charged, and interest may continue to accrue on the overdue amount.
6. DEFAULT
The Borrower will be in default if a payment is more than days overdue or if the Borrower breaches this Agreement. If the Borrower does not cure the default within days of written notice, the Lender may declare the entire remaining balance immediately due and payable and pursue any remedy available at law.
7. SECURITY
This Loan is . If the Loan is secured and the Borrower defaults, the Lender may take possession of the collateral to the extent permitted by law.
8. REPRESENTATIONS AND WARRANTIES
Each party confirms it is fully authorized to enter into this Agreement and that doing so does not breach any other agreement or obligation, or any law or regulation that applies to it.
9. LEGAL FEES
If legal action is needed to enforce or interpret this Agreement, the prevailing party is entitled to recover its reasonable legal costs, including attorney's fees, from the other party, to the extent allowed by law.
10. SUCCESSORS
This Agreement is binding on the parties and their heirs, legal successors, and permitted assigns. If a party dies or becomes incapacitated, that party's estate or legal successors remain responsible for its obligations under this Agreement.
11. ELECTRONIC SIGNATURES AND COUNTERPARTS
This Agreement may be signed in counterparts, each of which is considered an original and which together form one agreement. Electronic signatures, and copies of signatures delivered by email or through an electronic signing service, have the same legal effect as handwritten signatures on an original document.
12. GENERAL PROVISIONS
(a) Governing Law. This Agreement is governed by the laws of .
(b) Entire Agreement. This Agreement is the complete agreement between the parties and replaces any prior discussions, understandings, or agreements on this subject.
(c) Amendments. Any change to this Agreement must be in writing and signed by both parties.
(d) Severability. If any provision of this Agreement is found to be invalid or unenforceable, the remaining provisions will remain in full effect.
(e) Waiver. If a party does not enforce a provision, it does not give up its right to enforce that or any other provision later.
(f) Assignment. Neither party may assign or transfer this Agreement without the other party's prior written consent.
(g) Notices. Any notice under this Agreement must be given in writing (email is acceptable) to the other party.
IN WITNESS WHEREOF, the parties have signed this Agreement.
Date:
Lender
Name:
Signature: ______________________
Borrower
Name:
Signature: ______________________
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Sign It Free with SignovaXWhat is a loan agreement?
A loan agreement is a contract between a lender and a borrower that documents a loan and the terms for paying it back. It records the amount borrowed, any interest, the repayment schedule, and what happens if the borrower fails to pay — turning an informal loan into a clear, enforceable record.
People use loan agreements for personal loans between friends or family, business loans, and any situation where money is lent and expected to be repaid.
Why put a loan in writing
A written loan agreement protects both sides. It prevents misunderstandings about how much is owed and when, and it gives the lender a legal record if repayment stops. For loans between family or friends, a written agreement can also keep the relationship healthy by making expectations clear.
This template works for both interest-free loans and loans with interest, and for lump-sum or installment repayment.
What to include
A good loan agreement covers the loan amount, the interest rate (if any), the repayment schedule, late payment terms, whether the loan is secured by collateral, and default and prepayment terms. This template includes these essentials in plain language.
Enter the lender and borrower details, the amount, and the repayment terms, then download your agreement.
How to fill in and sign this agreement
Fill in the placeholders in the form above and download the agreement as a PDF or editable Word file for free — no account needed.
To sign, upload the PDF to SignovaX and send it for signature. Both parties sign online, and you receive a signed copy with a full audit trail and integrity hash.
Frequently asked questions
Is a loan agreement legally binding?
Yes. A signed loan agreement is an enforceable contract. Electronic signatures are valid in most places under laws such as the ESIGN Act and eIDAS.
Do I have to charge interest on a loan?
No. You can make an interest-free loan. If you do charge interest, be aware that some jurisdictions cap the maximum rate (usury laws). The template lets you set any rate you agree on.
What is the difference between a loan agreement and a promissory note?
A promissory note is a simpler, mostly one-sided promise to repay. A loan agreement is more detailed and sets out obligations for both the lender and the borrower.
Is this loan agreement free?
Yes. Fill it in and download it as a PDF or Word document for free. A SignovaX account is only needed to send it for electronic signature.
What happens if the borrower does not repay?
The agreement sets out default terms. The lender may demand full repayment and pursue the debt legally. Having a signed agreement makes it much easier to enforce the loan.
Disclaimer: This template is provided for general informational purposes only and is not legal advice. Laws vary by location. For important agreements, consider having a qualified lawyer review your contract before signing.