Personal Loan Agreement Template

This Loan Agreement ("Agreement") is made on the date of the last signature below between the Lender and the Borrower named below. It records the loan, so both sides remember the same terms.

1. The Parties

Lender Name:

Lender Address:

Borrower Name:

Borrower Address:

2. The Loan

Amount Lent (with currency):

Date the Money Is Handed Over:

How It Is Paid (bank transfer reference, cheque number):

The Borrower confirms receiving the amount above on the date stated. Large loans should be paid by bank transfer or cheque rather than cash, so there is a record.

3. Interest

Interest Rate per Year (write 0% if interest-free):

Interest, if any, is counted on the unpaid amount from the date the money is handed over and is simple interest unless the parties write otherwise here: ____________.

4. Repayment

Repayment Plan (one payment on a date, or instalment amount and how often):

First Payment Due Date:

Final Date by Which Everything Must Be Repaid:

The Borrower may repay early at any time without a fee. Each payment will be recorded in writing by the Lender on request.

5. If a Payment Is Missed

If a payment is late by more than _____ (fill in) days, the Lender may send written notice. If the amount due is still unpaid _____ (fill in) days after the notice, the Lender may demand the full balance at once.

6. Nature of the Loan

This loan is unsecured: it is not backed by property unless a separate written document says so. The Borrower is responsible for repaying it from their own means.

7. Governing Law and General Provisions

Governing Law (state/country whose law applies):

This Agreement is the entire agreement about the loan. Any change must be in writing and signed by both parties. If any part is found unenforceable, the rest stays in effect.

8. Signatures

By signing below, each party agrees to the terms of this Agreement.

Lender

Signature:

Printed Name:

Date:

Borrower

Signature:

Printed Name:

Date:

Witness (optional)

Signature:

Printed Name: