Private loan agreement template

Answer a few simple questions Review your completed document Print and download instantly. Your Loan Agreement Update Preview. This document preview is formatted to fit your mobile device. The formatting will change when printed or viewed on a desktop computer. Page of. Why should I use a Loan Agreement? What can you use a Loan Agreement for? What is the difference between a Loan Agreement and Promissory Note?

What does a Loan Agreement include? Loan agreements generally include information about: The location. People usually choose the lender's location for the Loan Agreement, but if the agreement is for the purchase of assets, then the parties might choose to list the location of the assets instead. The lender and borrower.

These details include name, address, and whether the lender or borrower is an individual or a corporation. You may also add a co-signer who agrees to pay the debt if the borrower defaults on the loan.

The loan amount. The amount of money being lent to the borrower is the loan amount. Interest and late fees. The lender may also penalize overdue payments by charging late fees or increasing the interest rate. Repayment method. The borrower may repay the loan in a single payment or regular payments.

The agreement should outline the repayment schedule, when the final amount is due, and if the borrower can repay the loan early or in lump sums. Collateral and insurance. The borrower may secure the loan with collateral such as a vehicle, equipment, or jewelry.

In this case, the lender may seize the collateral if the borrower cannot repay the full loan amount. The lender may also require the borrower to obtain insurance if using the loan to buy a vehicle. Should I charge interest in the Loan Agreement? What happens if the borrower or lender dies before repaying the loan? Print or download in minutes. Create Your Loan Agreement. Create your free Loan Agreement in minutes. Know someone lending money? Share this form:. Get Started. While loans can occur between family members — called a family loan agreement — this form can also be used between two organizations or entities conducting a business relationship.

Relying only on a verbal promise is often a recipe for one person getting the short end of the stick. If the payback terms are complicated, a written agreement allows both parties to clearly spell out any installment payment terms and the exact amount of interest owed. If a disagreement arises later, a simple agreement serves as evidence to a neutral third party like a judge who can help enforce the contract.

For personal loans, it can be even more important to use a loan contract. To the IRS , money exchanged between family members can look like either gifts or loans for tax purposes.

A simple loan agreement details how much was borrowed, as well as whether interest is due and what should happen if the money is not repaid. Who Needs a Loan Agreement? What Is a Loan Agreement? A simple loan agreement in writing will identify the following basic elements: Borrower : aka. How will the money be repaid? Loan Promissory Note IOU promise to repay promise to repay promise to repay steps for repayment steps for repayment timeline to repay timeline to repay legally binding legally binding signature of borrower signature of borrower signature of lender repay in installments consequences of defaulting i.

Possible Lender Possible Borrower Seller of a home Buyer of a home Seller of a car Buyer of a car Investor Startup company Family member Family member uncle or aunt helping their favorite family member nephew or niece paying for education or a wedding older wealthier family member divesting estate i.

Loan Agreement.