Loan Agreement Template

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All states | 6 types
Updated Apr 18, 2025
~ 5 pages
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A Loan Agreement is a legal contract between a borrower and a lender outlining the loan amount, interest rate, and repayment terms. It is used to document financial obligations and protect both parties in lending transactions.
Loan Agreement Page 1
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Written by Karyna Pukaniuk - Reviewed by Kate Adkham, LLB

Template Types

Payment (Plan) Agreement
This document outlines the schedule for payments to be made to fulfill a debt.
Shareholder Loan Agreement
This contract details the specifics of a loan between a company and a shareholder.
Loan Personal Guarantee Form
This form represents the guarantor's promise, pledging their assurance to satisfy a debt.
Family Loan Agreement
This agreement documents the amount borrowed and repayment terms between the parties.
Personal Loan Agreement
This form is necessary whenever a loan is given from one individual to another.

Template Description

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Paper titled "Loan Agreement"; man shaking his hand with a woman holding a big coin; coins and bank notes lying on the right

When To Use a Loan Contract

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You can use a loan agreement template when:

  • Lending money to a friend or family member — to avoid confusion and keep the agreement clear.
  • Borrowing money from someone you know — to show you're serious about paying it back.
  • Giving or getting a loan for a business — to outline terms like interest and payment schedule.
  • Buying something expensive with a payment plan — like a car, equipment, or electronics.
  • Charging interest on a personal loan — to make it legally binding and fair.
  • Protecting yourself legally — in case of missed payments or disputes.

How To Fill Out a Loan Agreement Contract

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1. Fill in the names and addresses

contract for loaning money

Start with entering the names of both parties (the one giving the loan and the one receiving it) along with their addresses.

Example:

This Loan Agreement (the "Agreement") is entered into on April 20, 2025 (the "Effective Date") by and between David Morgan, an individual having their usual place of living at 123 Oak Street, Denver, CO (the "Lender"), and Emily Turner, an individual having their usual place of living at 456 Pine Avenue, Boulder, CO (the "Borrower").

2. Specify the loan amount

contract for loaning money

Mention how much money is being loaned.

Example:

SUBJECT OF THE AGREEMENT. The Lender provides a loan to the Borrower in the amount of $10,000 (the "Principal Amount").

3. Set the interest rate

money loan contract

Write the agreed interest rate for the loan.

Example:

INTEREST RATE. The loan shall accrue interest at the rate of 1.5% per month (the "Interest Rate" or "Accrued Interest").

4. Add repayment terms

simple loan agreement template free

Note when the full amount is due and what happens with early or late payments.

Example:

REPAYMENT TERMS AND PROCEDURE. The entire Principal Amount with the Accrued Interest shall be due and payable on December 31, 2025 (the "Maturity Date").

Early repayment. The Borrower reserves the right to prepay the Principal Amount, in full or in part, at any time with a penalty of 0%.

Late payments. If the Borrower fails to make payments by the Maturity Date, a late fee of 2% of the overdue payment applies.

5. Add a clause for special situations

free loan agreement template

If unexpected events make it impossible to continue the basic loan agreement, set how many days it takes before either side can cancel.

Example:

If the force majeure circumstances last more than 30 days, either Party may terminate this Agreement by giving written notice.

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Grant vs. Loan: What's the Difference?
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