Loan Agreement Template
All states | 6 types
When To Use a Loan Contract
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.
Types of Loan Document Templates
On the Loio, the following types of simple loan agreement templates are available:
- Family Loan Agreement – A sample loan agreement used for lending money between family members with agreed repayment terms.
- Loan Personal Guarantee Form – A loan agreement form where someone promises to repay the loan if the borrower can’t.
- Payment (Plan) Agreement – Sets up a schedule for paying back a loan in installments.
- Personal Loan Agreement – A simple loan agreement between individuals, such as friends or acquaintances.
- Shareholder Loan Agreement – Used when a company loans money to or receives money from one of its shareholders.
How To Fill Out a Loan Agreement Contract
1. Fill in the names and addresses
Start with entering the names of both parties (the one giving the loan and the one receiving it) along with their addresses.
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
Mention how much money is being loaned.
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
Write the agreed interest rate for the loan.
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
Note when the full amount is due and what happens with early or late payments.
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
If unexpected events make it impossible to continue the basic loan agreement, set how many days it takes before either side can cancel.
If the force majeure circumstances last more than 30 days, either Party may terminate this Agreement by giving written notice.
