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Loan Agreement

A legal contract between a lender and borrower that outlines the terms of a loan, including amount, interest rate, and repayment schedule.

LOAN AGREEMENT

This Loan Agreement is made on [DATE] between [LENDER NAME] ("Lender") and [BORROWER NAME] ("Borrower").

1. LOAN AMOUNT

Lender agrees to loan Borrower the principal sum of $[AMOUNT] ("Loan Amount").

2. INTEREST RATE

The Loan shall bear interest at a rate of [INTEREST RATE]% per annum, calculated on the outstanding principal balance.

3. REPAYMENT TERMS

Borrower shall repay the Loan in [NUMBER] monthly installments of $[PAYMENT AMOUNT], beginning on [START DATE] and continuing on the [DAY] day of each month thereafter.

4. SECURITY

This Loan is [SECURED/UNSECURED]. If secured, the collateral is: [COLLATERAL DESCRIPTION].

5. DEFAULT

Default occurs if Borrower fails to make any payment when due, declares bankruptcy, or materially breaches this Agreement.

6. LATE FEES

Late payments shall incur a fee of $[LATE FEE] or [PERCENTAGE]% of the overdue amount, whichever is greater.

7. PREPAYMENT

Borrower may prepay the Loan in whole or in part at any time without penalty.

LENDER: _________________ BORROWER: _________________

[LENDER NAME] [BORROWER NAME]

Date: ___________ Date: ___________

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What is a Loan Agreement?

A Loan Agreement is a comprehensive legal contract that establishes the terms and conditions for lending money between individuals, businesses, financial institutions, or family members, protecting both lender and borrower interests. Essential for personal loans, business financing, emergency funding, equipment purchases, real estate transactions, and family loans, this agreement specifies loan amounts, interest rates, repayment schedules, collateral requirements, and default consequences. The contract typically includes payment terms, late fees, prepayment options, security provisions, guarantor obligations, and enforcement procedures. Crucial for banks, credit unions, private lenders, borrowers, small businesses, and individuals who need documented loan arrangements to ensure legal compliance, establish clear repayment expectations, and protect against disputes or default situations.

Frequently Asked Questions

Is this Loan Agreement template free to download?

Yes, you can download this Loan Agreement template completely free. No sign-up required.

Can I customize this Loan Agreement template?

Absolutely. All placeholder fields (marked with brackets) can be replaced with your specific details. We recommend reviewing the final version with a legal professional for high-stakes agreements.

Is this Loan Agreement legally binding?

A contract template becomes legally binding once both parties sign it with valid consideration and mutual agreement. The template provides the correct legal structure — you fill in the specifics.

How do I use AI to review my Loan Agreement?

Upload your completed contract to AnyContract.ai. Our AI will analyze it for risky clauses, missing protections, and unfavorable terms within seconds.

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