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LOAN AGREEMENT
THIS LOAN AGREEMENT (this "Agreement") BETWEEN:
__________ of ______________________________________(the "Lender")
OF THE FIRST PART
AND
__________ of ______________________________________(the "Borrower")
OF THE SECOND PART
IN CONSIDERATION OF the Lender loaning certain monies (the "Loan") to the Borrower, and the Borrower repaying the Loan to the Lender, both parties agree to keep, perform and fulfill the promises and conditions set out in this Agreement:
IN WITNESS WHEREOF, the parties have duly affixed their signatures under hand and seal on this
SIGNED, SEALED, AND DELIVEREDthis ________ day of ________________, ________.
_______________________________________
A Loan Agreement is also known as a:
A Loan Agreement is a document between a borrower and lender that details a loan repayment schedule.
Use LawDepot's Loan Agreement template for business transactions, student tuition, real estate purchases, down payments, or personal loans between friends and family.
Using a Loan Agreement protects you as a lender because it legally enforces the borrower's pledge to repay the loan in regular payments or lump sums. A borrower may also find a loan contract useful because it spells out the details of the loan for their records and helps keep track of payments.
Customize LawDepot’s Loan Agreement template to suit a variety of purposes, including:
A Loan Agreement is more comprehensive than a Promissory Note and includes clauses about the entire agreement, additional expenses, and the process for amendments (i.e., how to change the terms of the agreement). Use a Loan Agreement for loans of a large amount or that come from multiple lenders. Use a Promissory Note for loans that come from non-traditional money lenders like individuals or companies instead of banks or credit unions.
Loan agreements generally include information about:
Interest is a way for the lender to charge money on the loan and compensate for the risk involved with the transaction.
You may choose to begin charging interest or increase the interest rate if the borrower fails to make a payment on time. The increased interest provides you with additional compensation for the borrower's failure to pay as promised and the trouble of having to enforce the Loan Agreement.
If the borrower dies before paying off the loan, authorities will use their assets to pay the remainder of the debt. If there is a co-signer, the responsibility for the debt falls to them.
If the lender dies before receiving the complete repayment, the borrower owes to the lender’s estate. In this case, the beneficiaries of the lender’s estate will collect the remainder of the debt.
If the loan is for a significant amount, it’s important that you update your Last Will to specify how you want to deal with the outstanding loan upon your death.
Sample
Loan Agreement
Create Your Loan Agreement
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