Personal Loan Agreement
A loan of money from a lender to a borrower, repaid on the plan both agree. Template v1.0.
Date of this agreement: Date of this agreement
Lender: Lender
Borrower: Borrower
1. The loan
Loan amount: Loan amount
Date the Lender pays the loan: Date the loan is paid
The Lender will pay the amount above (the Loan) to the Borrower on that date. The Borrower will confirm in writing when the money arrives.
2. Interest
Interest rate per year, in percent: Interest rate per year, in percent
Interest is simple interest on the unpaid balance, from the day the Loan is paid until it is repaid. If the rate is zero, no interest is charged. Interest will never be more than the law allows. If it ever would be, the rate is reduced to the highest lawful rate.
3. Repayment
Repayment plan:
Everything still owed is due by: Final due date
Payments are made by: Payment method
Each payment goes first to interest that is due and then to the balance. The Lender gives the Borrower a written record of payments when asked.
4. Paying early
The Borrower may repay all or part of the Loan at any time without penalty. No interest is charged on an amount after it is repaid.
5. Late payments
Late fee: Late fee
A late fee applies only if the box above sets one, and only as far as the law allows.
6. Default
The Borrower is in default if a payment is not made when it is due. Before taking any action, the Lender must give the Borrower written notice of the default. If the Borrower does not fix it within 14 days after the notice, the Lender may demand that the whole unpaid balance and interest be paid at once.
7. Costs
Each party pays its own costs of making this agreement. If the Lender has to take legal steps to collect an amount in default, the Borrower pays the Lender's reasonable costs of collection, as far as the law and any court allow.
8. Security
Security for the Loan: None. This loan is unsecured.
If the box above names any security, the parties will sign a separate document for it. Otherwise the Loan is unsecured.
9. General
This agreement is governed by the laws of:
Governing law
This is the whole agreement about the Loan. A change is valid only in writing signed by both parties. Neither party may transfer this agreement without the other's written consent. Notices may be sent by email to the address each party used to sign. If a term cannot be enforced, the rest still applies.
Borrower address (the Borrower fills this in): Borrower fills this in when signing
