loan-agreement

Loan Agreement

2 signers
1Lender
2Borrower
USE THIS TEMPLATE - FREE

Use Our Loan Agreement Template

Are you looking for a personal loan agreement template that is easy to use and understand? If so, look no further than our free download designed to guide anyone who wants to set up a loan between two parties. Just fill in the blanks with information about the loan terms and conditions, and you’ll be ready to go. Our loan agreement template is simple yet comprehensive, so whether you’re an individual borrowing money or a business looking to form your own loan agreement with another party, this template has everything you need.
Sample loan agreement template from Fill

At Fill, we understand that entering into loan agreements typically can be daunting and stressful. Whether you are taking out a loan to finance your education, purchase a home, or start your own business, it is important to have the necessary information you need to make a sound decision for your unique situation.

That is why we have created this template, which will allow you to easily and quickly create a legally binding agreement tailored specifically to your needs.

Our loan agreement templates are easy to use and feature all the essential elements of a loan contract, including interest rates, payment schedules, and other key information and terms. Stop wasting time searching for the perfect loan agreement template.

Download this legal contract today and get started on creating secure loan documents that protect all parties involved.

When to Use a Loan Agreement

A loan agreement can come in many ways. Usually, a bank or financial institution will provide a loan agreement for larger loans, such as mortgages, fixed-term loans, or small business loans. However, it can also be used for unsecured loans between friends and family members.

When borrowing or lending money, you should get an official document stating the loan details, structure, and terms. The use of verbal promises can lead to the lender gaining the short end of the stick if a borrower fails to pay back the loan.

If payment terms are complicated, having an entire agreement signed by both borrower and lender can clearly define payment terms, the repayment schedule, and the precise interest owed.

In cases where one party stops meeting the terms of a contract, this document provides additional benefit as both parties understand how the consequences of such actions are incurred. The loan agreement will provide evidence that will be used to prove a dispute or to a court that can help enforce the agreement.

Explore the contents of our free loan agreement

When entering into a loan agreement, certain components must be included for the contract to be valid. First and foremost, the loan amount and payment terms must be specified. This may include loan terms such as the interest rate, length of loan, monthly installment payments, and service fees. Additionally, depending on the nature of the loan, there may also be specific requirements or restrictions regarding loan use.

You can find the following information in our loan agreement template:

  • Borrower and lender contact information
  • Loan amount and payment terms
  • Interest rate and penalty fee
  • Legal costs for failure to meet entire agreement clause

Loan agreements must-haves

The document should include details of both the borrower and the lender including their names, addresses, and contact information.

Loan amount and interest rate

The amount of money being lent, also known as the principal amount, and the interest rate for repayment should be clearly stated in the loan agreement.

When a borrower defaults

A loan agreement will also have information on how the lender can collect their money. This includes the option for using a third party to collect a lump sum payment or for the lender to directly take possession of collateral in lieu of the full amount owed.

Payment schedule

The agreement should outline when the borrower is expected to make their loan repayments, whether it’s monthly payments or one final payment with the accrued interest, as well as any consequences for missing a payment or paying late.

FAQ About Our Loan Agreement Template

Loan agreements are somewhat more rigid and comprehensive than promissory notes and IOUs. Loan payment contracts are also enforceable and can come into play in court if necessary. Promissory notes and IOUs, on the other hand, are typically more informal and are used for smaller personal loans issued by non-traditional money lenders.
Typically someone who intends to borrow money will agree to provide compensation to the lender immediately after the loan process begins. They are usually charged interest payments depending on the lender’s agreement and their outstanding debt.
Usually, there’s no requirement for a witness on loan contracts. During this process, an expert may verify signatures on an agreement and demonstrate that this agreement is binding. Governing laws may specify the witness requirement but essentially, a legal representative or notary public may suffice.

" Undoubtedly one of the best eSignature application available in the market right now. Would love to recommend Fill. "

Liam Washington
Capterra

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