Free Loan Agreement Templates

What Is a Loan Agreement?

A Loan Agreement is a legally enforceable document that confirms one party (the borrower) has borrowed a particular sum of money from another party (the lender) and lists the terms of future repayment.

Alternate Name:

  • Loan Contract.

Whether you are in need of financial assistance from a family member, friend, lending agency, or a bank, it is essential to work on the instrument that details your deal, explains how and when the money must be paid back, and guarantees legal protection for both counterparts in the event of the contract breach.

You can find a full list of Loan Agreement Templates by checking out our library below.

Loan Agreement Template Types

  • Loan Agreement Template. Fill out this generic template whether you are contemplating a large purchase or need money to cover your daily expenses - you can create the payment schedule after consulting with the lender and determine the interest rates you qualify for in accordance with the conventional rules of the institution that will help you out financially;
  • An Employee Loan Agreement Template is composed when the employer agrees to support an employee in difficult circumstances; the repayment is typically handled by the employer that gets to pay fewer wages every salary day until the debt is settled;
  • Equipment Loan Agreement Template. If your organization requires equipment to function properly but you do not want to commit to certain manufacturing operations for years or simply do not have enough resources to purchase the equipment you need, you may use this Loan Contract Template;
  • A Mortgage Loan Agreement Template has to be completed when the borrower needs money to finance real estate - the conditions of the instrument grant the lender the right to claim the property if the individual that took out the loan is unable to pay it back;
  • Family Loan Agreement Template. If you prefer to keep the financial matters in the family, you can borrow money from one of your relatives and outline the details of the arrangement in this Loan Agreement Template - this is often done when a traditional bank loan is out of the question and the sum of money is not putting either party at risk;
  • A Shareholder Loan Agreement Template is filled out when the company asks one of its shareholders for financial support in the form of a loan - one of the common reasons to sign this document is the inability of the entity to pay salary to its employees; the interests of the shareholder are usually safeguarded by the collateral.

How to Write a Loan Agreement?

Follow these steps to draft a simple Loan Agreement:

  1. Identify the parties by their full names and contact details.
  2. Specify the amount of the loan and determine the interest rate.
  3. Indicate the loan term and elaborate on the frequency of payments. You may also attach a schedule explaining how often the borrower is supposed to pay and when is the due date for the full amount of the loan.
  4. List the remedies available to the lender in case the borrower delays a payment - for example, the interest rate may increase or the lender gets permission to seize the property used as collateral.
  5. Give the borrower the option to pay the loan early and outline how that impacts the interest rate.
  6. Record the procedures the parties will adhere to when they believe an amendment to the contract is necessary or they want to exercise the right to terminate the agreement before it expires.
  7. Sign the papers and write down the actual date. Consider inviting a person or entity ready to support the borrower in the event of default to the signing and ask them to acknowledge the agreement in question.

How to Get Out of a Loan Agreement?

Here is what you need to do to dissolve a Loan Contract:

  1. Analyze the provisions of the agreement you have in your possession. One of the sections of the contract usually covers matters like modifications to the document and its termination, so it should give you a general idea about the possible ways out.
  2. Contact the lender to discuss the issue with them personally. Consider visiting their office instead of limiting yourself to the phone call - it will give you both an opportunity to look into the contract cancellation. Make sure you are transparent about your problems and prepare to reach a compromise with the other party - they need to see you are willing to resolve the matter.
  3. Refer to the laws of the state to see what means of legal protection are available in your situation. For instance, you may settle the debt by paying half of the amount you owe immediately and ask for debt relief due to the period of incapacity for work. You may clarify all this in a formal letter offering the lender to accept the new terms.

Does a Loan Agreement Need to Be Notarized?

Although not necessarily required by your state, a notary signature adds validity to your document if it comes to be disputed in court. A notary verifies your document once all the parties have signed it, which oftentimes helps to avoid any potential legal complications.

Does a Loan Agreement Have to Be Witnessed?

Again, there is no requirement for a witness or notary public to witness the signing of the Loan Contract, however, it also adds validity to your document if you have an objective third party witness the signing of your agreement, which can be used as evidence in case of a dispute.

Related Templates and Topics:




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This contract contains the consent of an employer to provide a loan to an employee, which will be further deducted from the employee's payroll.

This is a contract used to document and formalize all obligations that regulate receiving the loan and paying it back.

This type of agreement is used when a corporation borrows money from a shareholder in order to explain the details of the loan and to serve as evidence of the debt.

An individual or organization may use this type of template to loan out specific equipment to colleagues in various departments.

This type of template is used by individuals that are related by marriage or blood and want to record the amount of money one of the relatives gives to the other and the terms of repayment.

Upon signing this type of template, this legal instrument gives the latter access to the lender's money creating a lien on the real estate.

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