Personal Loan Agreement Sample

When obtaining a personal loan, it is crucial to have a written agreement outlining the terms and conditions of the loan. This agreement provides legal protection for both the borrower and the lender and ensures that all parties involved are on the same page about things like repayment schedules, interest rates, and the consequences of defaulting on the loan.

To help you understand what a personal loan agreement looks like, we’ve provided a sample agreement below. This agreement is intended to serve as a starting point to help you draft your own agreement with your lender or borrower. Keep in mind that the terms and conditions of the agreement will vary depending on the specific circumstances of your loan, so you may need to make adjustments accordingly.

Sample Personal Loan Agreement

This Personal Loan Agreement (“Agreement”) is entered into by and between [BORROWER NAME], a [STATE OF RESIDENCE] resident (“Borrower”), and [LENDER NAME], a [STATE OF RESIDENCE] resident (“Lender”), on [DATE OF AGREEMENT].

Loan Amount: The Borrower will receive a loan of [LOAN AMOUNT] from the Lender.

Interest Rate: The interest rate on the loan will be [INTEREST RATE], calculated on an annual basis.

Repayment Schedule: The loan will be repaid in [NUMBER OF MONTHS] monthly payments of [MONTHLY PAYMENT AMOUNT], due on the [DAY OF MONTH] of each month, beginning on [DATE OF FIRST PAYMENT].

Prepayment: The Borrower may prepay the loan at any time without penalty.

Late Fees: If a payment is not received by the due date, the Borrower will be charged a late fee of [LATE FEE AMOUNT].

Default: If the Borrower fails to make a payment for [NUMBER OF DAYS] days, the Lender may declare the full amount of the loan immediately due and payable.

Governing Law: This Agreement will be governed by the laws of the state of [STATE OF RESIDENCE].

Entire Agreement: This Agreement constitutes the entire agreement between the parties and supersedes all prior negotiations, understandings, and agreements between the parties.

Modification: This Agreement may be modified only by a written instrument executed by both parties.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

[LENDER NAME]

[LENDER SIGNATURE]

[BORROWER NAME]

[BORROWER SIGNATURE]

As you can see, a personal loan agreement is a straightforward document that outlines the details of the loan between the borrower and lender. While this sample agreement provides a good starting point, it’s essential to remember that you may need to modify it to fit the specifics of your loan.

If you’re unsure about drafting a personal loan agreement on your own, it is always best to consult with a legal professional to ensure that all the necessary details are included and that the agreement provides legal protection for all parties.