Free Loan Agreement

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Create Your Free Loan Agreement

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Loan Agreement

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LOAN AGREEMENT

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

Lender

__________of ______________________________________

(the "Lender")

Borrower

__________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 fulfil the promises and conditions set out in this Agreement:

Loan Amount & Interest
The Lender promises to loan £____________________GBP to the Borrower and the Borrower promises to repay this principal amount to the Lender, without interest payable on the unpaid principal, beginning on 21 January 2021.
Repayment
This Loan will be repaid in full on 21 January 2021.
Default
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 under this Agreement at that time to be immediately due and payable.
Governing Law
This Agreement will be construed in accordance with and governed by the laws of the Country of England.
Costs
The Borrower shall be liable for all costs, expenses and expenditures incurred including, without limitation, the complete legal costs of the Lender incurred by enforcing this Agreement as a result of any default by the Borrower and such costs will be added to the principal then outstanding and shall be due and payable by the Borrower to the Lender immediately upon demand of the Lender.
Binding Effect
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.
Amendments
This Agreement may only be amended or modified by a written instrument executed by both the Borrower and the Lender.
Severability
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.
General Provisions
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.
Entire Agreement
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 ________________, ________

SIGNED, SEALED AND DELIVERED before me, this ________ day of ________________, ________			_____________________________ __________

SIGNED, SEALED AND DELIVERED before me, this ________ day of ________________, ________			_____________________________ __________

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Loan Agreement Information

What is a Loan Agreement?

A Loan Agreement, also known as a term loan or loan contract, is a document between a lender and a borrower that details a repayment schedule. The loan contract acts as an enforceable promise between the parties where the borrower must pay back the lender according to a payment plan.

You can create and customise this Loan Agreement for the following regions:

England
Wales
Scotland
Northern Ireland

When should I use a Loan Agreement?

Use a Loan Agreement when an individual or business lends money to another individual or business. This contract is helpful when the lender requires a written payment plan for the borrower to repay the loan back in installments over a predetermined time period.

Customise LawDepot's Loan Agreement template to suit a variety of purposes, including:

Business loans, such as capital for a startup business
Purchases, such as a vehicle, boat, or furniture
Real estate loans, such as a down payment on a home
Student loans for tuition and other educational expenses
Personal lending between friends or family for debts or bills

How do I create a payment plan?

The payment plan in your Loan Agreement depends on how the borrower makes payments. There are typically three options:

Lump sum payment at the end of the term: The borrower pays the entire amount back in one lump sum on a specified date or upon demand.

Regular payments: The lender specifies the amount and interval they wish to receive payments from the borrower. Any remaining balance is paid at the end of the term.

Regular payments towards principal and interest: The borrower makes regular payments that go towards the principal as well as the interest as it accrues. There's no large payment at the end of the term. The parties calculate the repayment schedule so that the borrower pays the principal and the interest by the end of the term.

What is term length?

Term length is the period in which the borrower must pay back their loan to the lender. If the lender issues a notice to repay, the borrower must pay back their loan within a certain time period after receiving the notice.

What is interest?

Interest is usually a percentage of the principal amount. A lender charges interest on the outstanding amount as reimbursement for the risks of lending money and to make up for the cost of inflation.

What is collateral?

Borrowers may use collateral to secure the repayment of a loan. It's usually a tangible asset, such as a vehicle or other asset worth the equivalent of the loan itself.

If the borrower defaults on their loan payments, the lender can go to court to foreclose the collateral to remedy their loss. Lenders may request collateral when lending a significant amount of money, or if there's a high chance the borrower may default.

Frequently Asked Questions:

Loan Agreement FAQ