Free Loan Agreement

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Free Loan Agreement

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  2. Email, download or print instantly
  3. Just takes 5 minutes

Loan Agreement


Personal lending
Real estate

Your Loan Agreement

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THIS LOAN AGREEMENT (this "Agreement") dated this ________ day of ________________, ________


__________ of ______________________________________
(the "Lender")



__________ of ______________________________________
(the "Borrower")


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:

  1. Loan Amount & Interest
  2. The Lender promises to loan ‎€____________________ to the Borrower and the Borrower promises to repay this principal amount to the Lender, without interest payable on the unpaid principal, beginning on 28 September 2020.
  3. Payment
  4. This Loan will be repaid in full on 28 September 2020.
  5. Default
  6. Notwithstanding anything to the contrary in this Agreement, if the Borrower defaults in the performance of any obligation under this Agreement, then the Lender may declare the principal amount owing and interest due under this Agreement at that time to be immediately due and payable.
  7. Governing Law
  8. This Agreement will be construed in accordance with and governed by the laws of Ireland.
  9. Costs
  10. All costs, expenses and expenditures including, without limitation, the complete legal costs incurred by enforcing this Agreement as a result of any default by the Borrower, will be added to the principal then outstanding and will immediately be paid by the Borrower.
  11. Binding Effect
  12. This Agreement will pass to the benefit of and be binding upon the respective heirs, executors, administrators, successors and permitted assigns of the Borrower and Lender. The Borrower waives presentment for payment, notice of non-payment, protest, and notice of protest.
  13. Amendments
  14. This Agreement may only be amended or modified by a written instrument executed by both the Borrower and the Lender.
  15. Severability
  16. The clauses and paragraphs contained in this Agreement are intended to be read and construed independently of each other. If any term, covenant, condition or provision of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, it is the parties' intent that such provision be reduced in scope by the court only to the extent deemed necessary by that court to render the provision reasonable and enforceable and the remainder of the provisions of this Agreement will in no way be affected, impaired or invalidated as a result.
  17. General Provisions
  18. Headings are inserted for the convenience of the parties only and are not to be considered when interpreting this Agreement. Words in the singular mean and include the plural and vice versa. Words in the masculine mean and include the feminine and vice versa.
  19. Entire Agreement
  20. This Agreement constitutes the entire agreement between the parties and there are no further items or provisions, either oral or otherwise.

IN WITNESS WHEREOF, the parties have duly affixed their signatures on this ________ day of ________________, ________

this ________ day of ________________, ________




this ________ day of ________________, ________




Loan Agreement Template

Alternate Names:

A Loan Agreement is also known as a/an:

  • IOU
  • Promissory Note
  • Term Loan
  • Personal Loan Agreement
  • Loan Contract

What is a Loan Agreement?

A Loan Agreement is a legally binding document that parties use when one lends money to the other.

The parties that enter into a loan contract are a lender (the person loaning money to someone else) and a borrower (the person receiving a loan).

A Loan Agreement can either be secured or unsecured:

Secured: A secured loan is one that is issued and supported with collateral to be used in the event that the borrower can no longer make payments. Collateral is usually a physical asset that can be seized and/or sold off by the lender to pay the remaining balance of the loan, such as a car, a house, stocks, or bonds.

If there isn't a collateral clause in the contract, the lender would have to go to court to seize any of the borrower's assets. With a clause in place, the lender may still have to go to court to seize on the collateral, but the process tends to run smoother.

Unsecured: An unsecured loan is one that is issued without collateral. These kinds of loans tend to be more common among friends or when loaning money to family members.

Sometimes loans will also have higher interest rates or other enticements to the lender to accept the loan without collateral.

What do I need a Loan Agreement for?

A written loan contract helps to ensure fairness, and protects both the borrower and the lender in the agreement by limiting repayment disputes; this is done by clearly outlining the terms and obligations of both parties.

You can use a Loan Agreement for:

  • Business loans, like getting start-up money for a new business
  • Real estate loans, such as a down payment on a home or to cover rent
  • Student loans or other expenditures for education, like textbooks or tuition
  • Purchase loans for things like furniture or cars
  • Personal loans made between family members or friends

How can I pay off my loan?

Loans can be repaid in a variety of ways, often using an amortization calculator.

This Loan Agreement offers the following amortization payment schedules:

  • A lump-sum: one total payment at the end of the loan term that covers the principal amount and any accrued interest based on the loan contract's terms
  • A regular payment amount: scheduled payments set out periodically (usually weekly, bi-weekly, or monthly) during the loan term that might not be perfectly amortized, meaning the loan can be paid off early or there might be a remainder paid at the end of the agreement
  • Regular payments towards the principal and interest: scheduled payments that subtract from the total balance (the principal and the interest), which means there is no remainder payment at the end of the term
  • Regular payments towards interest: scheduled payments that only subtract from the interest, and the principal is paid back at the end of the term

What should a Loan Agreement include?

A Loan Agreement should have the following:

  • Loan amount: The total balance should be listed on the agreement. You can also charge interest, which is usually a percentage of the principal amount that is added to the total (also known as simple interest). There is also the option of compound interest, which is when interest is charged on the principal amount and also on any previously accrued interest. Interest can be compounded monthly, semi-annually, or annually, resulting in a higher interest rate than with simple interest.
  • Method of payment: This is how the borrower will pay back the lender, e.g. lump-sum or regular payments with or without interest.
  • Payment schedule: The schedule outlines when the lender's money will be repaid. This can be done with a fixed date (e.g. July 20th) or with a specific timeframe detailed in the contract (e.g. a payment of €100 every two weeks).
  • Lender and borrower details: These details should include names, addresses, and other basic contact information.
  • Collateral: You can choose to make your loan secured or unsecured based on whether or not you want to include collateral for security if the borrower falls behind on payments or stops paying altogether.
  • Default details: You can choose to up the interest rates if the borrower defaults. Defaulting refers to when the borrower fails to perform any of the obligations in the loan contract, like not making payments.

Related Documents:

  • Demand Letter: A Demand Letter is a form used to request payment or action for a defaulted obligation from another party. It describes the claim and how it should be resolved.
  • Waiver/Release Agreement: This document ensures a party will not pursue legal action in exchange for compensation.
  • Bill of Sale: This form is used to transfer ownership of an item to a party in exchange for payment.

Frequently Asked Questions:

Loan Agreement FAQ
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