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LOAN AGREEMENT
THIS LOAN AGREEMENT (this "Agreement") dated this ________ day of ________________, ________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, the parties agree to keep, perform and fulfil the promises and conditions set out in this Agreement:
IN WITNESS WHEREOF, the parties have duly affixed their signatures on this ________ day of ________________, ________.
SIGNED, SEALED, AND DELIVEREDthis ________ day of ________________, ________.
_________________________________________________
Required Disclosures
If the lender is in the business of providing loans and the loan is predominantly for personal, domestic or household purposes then the National Credit Code may apply to you. To determine if the National Credit Code applies to you and whether you need a license please review the following link: (If you are still unsure you may need to consult a qualified attorney in your jurisdiction)
In such situations, the lender must also provide the borrower with an amortisation schedule which can be purchased from LawDepot.com or a similar document containing the following information, as outlined in section 17 of the National Credit Code:
You can review the National Consumer Credit Protection Act at:http://www.comlaw.gov.au/Details/C2012C00684
A Loan Agreement can also be known as a:
A Loan Agreement is a detailed record of a loan between a borrower and lender that usually includes details about how the loan will be repaid. A Loan Agreement also lists the responsibilities both parties have with regards to the loan.
The lender is the person or entity (such as a corporation) that is providing the loan, and the borrower is the person or entity receiving the loan.
LawDepot's Loan Agreement can be used in the following Australian states and territories:
A Loan Agreement is usually chosen for more complex transactions as it includes more detailed information about how the loan will be repaid.
A Promissory Note is typically used for straightforward or simple loan terms, for instance loans between friends or family members.
Loan agreements generally include information about:
Although charging the borrower interest isn't necessary, it is a way for the lender to make money on the loan, as well as a way to provide compensation to the lender for the risk involved with lending money to a third party.
LawDepot's Loan Agreement allows you to include compound interest, which is interest calculated based on the original loan amount and the interest that is accumulated from previous periods. You can choose whether the interest is compounded monthly, every six months, or annually.
Generally, a Loan Agreement does not have to be notarised in order for it to be valid, but the benefit of having a notary sign your document is that it adds to its validity in the event that it is disputed.
Keep in mind that depending on the nature of the loan and the jurisdiction where the transaction is taking place, you may be required to have your document notarised or signed by witnesses.
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