Free Loan Agreement

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Loan Agreement Details
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This software has the flexibility to let you quickly create the Loan Agreement you want. It does this by providing many options with appropriate defaults.

Leave an answer empty if you want a blank line in place of the answer in order to complete it after printing, but before it is signed.
Governing Law
Province: Q. What is the governing law for a Loan Agreement? A. The governing law is the law of the jurisdiction in which the Loan Agreement will be entered into. Often the parties select the jurisdiction where the Lender resides. If the Loan Agreement relates to the purchase of certain assets, then the location of those assets is selected.
Lender
Number of Lenders: Q. Who is the Lender? A. The Lender is the person or corporation that gives something of value (money, property or some service) to the Borrower on condition that the Lender will be paid a certain amount in the future.

First Lender
Name:
Address:
(e.g.  Street, City, Province, Postal Code)
Type of Lender:
Is this loan a non-commercial agreement? Yes No
Borrower
Number of Borrowers: Q. Who is the Borrower? A. The Borrower is the person or corporation that receives value (money, property or some service) from the Lender on the condition that the Borrower will pay the principal amount plus any interest to the Lender at sometime in the future.

First Borrower
Name:
Address:
(e.g.  Street, City, Province, Postal Code)
Type of Borrower:
Is the borrower using the proceeds of this loan for a business purpose? Yes No Loan proceeds that are for a business purpose cannot be used for household or personal purposes.
Principal
Principal amount: $ (e.g. 1,000.00) Q. What is the Principal amount? A. The principal is the original amount of the loan that is owed by the Borrower to the Lender on the date the Loan Agreement is signed. Once the Borrower has begun to pay back the loan, the principal refers to the amount of money still owing to the Lender at any given moment in time.
Currency:
Term
  Q. What is the Term? A. The Term is the time length of the loan agreement. At the end of the term, the Borrower must repay the outstanding balance of the loan. Choose a term that represents the desired frequency of payments (e.g. select 36 months for 3 years).
Term of the loan is: Q. What is a demand loan agreement? A. The balance owing in a loan agreement does not need to be repaid until the Lender demands to be repaid. In other words, the loan is repayable 'on demand'. There is no fixed end date for the repayment of the loan. Upon demand, the Borrower is given a certain period of time to repay the outstanding balance of the loan agreement.
Payment
Payments are: Q. What are the payment options available? A. There are four options for the method of repayment. Specific periodic amounts - the Borrower will make a certain payment to the Lender on regular intervals. Lump sum payment at the end of the term - the Borrower pays nothing to the Lender until the end of the note term, at which time the Borrower repays the entire note in one payment. Interest only - the Borrower makes regular payments to the Lender that are put toward paying off the interest on the principal amount only, with no portion of the payment going towards the principal amount itself. Interest and principal - the Borrower makes regular payments to the Lender that are put toward paying off both the principal amount and the interest as it is compounded. At the end of the term of the Loan Agreement, there will be no outstanding balance to be repaid.
Borrower can pay outstanding principal without penalty:
Default
Charge interest if Borrower defaults:
(Penalty interest to be charged on a loan if the Borrower defaults.)
Security
Loan is to be secured by security/collateral? Yes No Q. Should the Lender require the Borrower to provide security/collateral for the note? A. If you do not take collateral, and the Borrower defaults on the loan, you will have to take the Borrower to court in order to recover your money and your judgement can only be enforced against certain assets of the Borrower. However, if you take collateral for the loan agreement, then you may be entitled to seize and sell the collateral if the Borrower fails to repay the loan.
(If the Borrower is unable to repay the loan the Lender can take possession of the security/collateral as repayment.)
Additional Clauses
Miscellaneous
Specified address for payment:
Signing Details
Date Agreement to be Signed: Q. I do not know when the Loan Agreement will be signed. Can I fill in the date later? A. Yes, by selecting 'Unsure' as the date the agreement will be signed, a blank line will be inserted into the contract so that you can add the correct date after printing the document.
Parties signing in front of: Q. Do I need witnesses to sign the Loan Agreement? A. Generally speaking, there is no requirement for a witness or notary public to witness the signing of the Loan Agreement. However, depending on the nature of the loan and the governing law of the jurisdiction in which you're entering into the loan, you may be required to have witnesses or a notary public witness the Loan Agreement. Even if it is not required, having an objective third party witness the signing of the loan agreement will be better evidence when you need to enforce the repayment of the loan. Signing the note in front of a notary public is the best evidence that the Borrower signed the loan agreement.
Province where Lender is signing:
Province where Borrower is signing:
Do you require a Notarial Acknowledgement? Yes No
A Notarial Acknowledgement is only required in a few very specific situations. Do you wish to have a Notarial Acknowledgement of the transaction in addition to signing in front of a Notary?