The loan agreement is a legally binding agreement between the lender and borrower of money, product or services.
What is a Loan Agreement Form?
A loan agreement form is used by and between a Lender and Borrower to record the promises and agreements made by each other and legally bind each other to these promises and agreements. It includes but not limited to information regarding the transfer of loans such as the legal name of the person receiving it and the legal name of the person sending it along with their residential addresses.
One must not mix up the loan agreement with lease agreements.
Purpose of Loan Agreement Form
A loan agreement assists both parties in obtaining protection against any conflict, disputes or claims made regarding this loan. For the borrower, it acts in its favor by recording the amount received by him and the repayment period granted to him. So the lender can not put pressure upon him to pay earlier or more than as agreed upon. And for the Lender, it acts in its favor by recording that a loan of a certain amount has been made to the particular individual so he can not refuse to repay the loan or deny entirely that he has received a loan.
Loan Agreement Form Word File (Editable Preview) – Free Downloadable
Loan Agreement Template
This loan agreement is hereby agreed to by the following parties:
Lender’s Name: ________________
Lender’s Street Address: ________________
Lender’s City, State, Zip: _____________________
Borrower’s Name: ________________
Borrower’s Street Address: ________________
Borrower’s City, State, Zip: _____________________
The Lender and Borrower in this context are to be referred to as “Party” as an individual and “Parties” as aggregate.
The lender has deliberately accepted to provide the Borrower with a loan, and the Borrower has accepted the loan in correspondence and promises to repay the loan back as per contractual agreements set out here.
The Lender has accepted to provide a loan of the monetary amount of [LOAN AMOUNT] to the Borrower on the date of [LOAN DATE]. The Borrower promises to repay the loan in full amount including the interest rate charged as per the terms set forth herein.
- Loan Delivery
The Lender agrees to deliver the full loan value to the Borrower in the following manner: [DELIVERY METHOD]
The Borrower promises to gradually pay back the loan by making regular monthly payments of the value [PAYMENT AMOUNT] before every 1st of each month. The
The first loan monthly repayment is to be made on [INITIAL PAYMENT DATE] and will continue to make remunerations until the final payment on [LAST PAYMENT DATE].
A late payment can be identified if made after [TIME] [Lender.Timezone] on every 1st of each month. A late fee amount of [LATE FEE AMOUNT] will be attached to all late payments.
Payments can be made via the following methods:
Payment Methods: ___________________________
- Governing Law
These terms and conditions put forth herein are under the governance of the Judicial System of[Sender.State]. And both parties agree to resolve any lawsuits, loss or damages or disputes through the filing with a competent court in the state of [Sender.State].
- Penalty For Defaults
In case the Borrower has failed to make payments in the time and manner set out herein, the Lender has been granted the right to demand full repayment of the remaining balance on the loan. After this, the Borrower will be obligated to repay the full amount within a 30 day period.
- Legal Fees
Both parties have accepted that, in the case of a lawsuit or any other legal proceedings pertaining to this loan agreement, any legal costs (such as lawyer’s fees) incurred by the party proved innocent are to be compensated by the party proved guilty.
In case one of the parties has deceased or lost the capability to engage in this agreement, the legal successor of this party will replace their due responsibilities and bound to the contractual agreements mentioned herein.
- Financing Itemization
Amount given to borrower:
Interest (if repaid entirely via monthly installments):
Total Amount of Payments (if repaid as scheduled):
In case a need for communication or notification arises regarding this Loan agreement, the parties are to reach each other in the following manner:
If to the Lender:
Lender’s Street Address: __________________________________________
Lender’s City,State, Zip: ___________________________________________
Lender’s Email: ________________________________________
Lender’s Phone: __________________________________________
If to the Borrower:
Borrower’s Street Address: __________________________________________
Borrower’s City,State, Zip: ___________________________________________
Borrower’s Email: ________________________________________
Borrower’s Phone: __________________________________________
Both parties have agreed to the contractual terms set out herein by signing this Loan Agreement below: