A Loan Agreement is the document that is signed between two parties that want to get into a transaction involving a Loan. The loan agreement document is signed by a Lender (the individual or company giving the loan) and a Borrower (the individual or company receiving the loan).
The Loan Agreement document works as a legal written evidence between these two parties - the Lender and the Borrower - wherein the lender promises to lend a certain amount specified in the Loan Agreement Form to the borrower, and the borrower promises to repay the amount back to the Lender, along with any applicable interest, according to the repayment schedule mentioned in the document.
This loan agreement template can be used for a variety of loan purposes, such as Personal Loans, Car Loans, Student Loans, Real Estate Loans, Business Loans, etc. Irrespective of the purpose of the loan, the structure of the loan agreement stays the same. Broadly speaking, any loan agreement document promises the following two things:
- That the Lender will loan a specific amount to the borrower by a specified date.
- That the Borrower will repay the specified amount, along with interest, according to the repayment schedule agreed upon.
Now, there are many different types of Loan Agreement Forms, and the contents of each loan agreement template differs on a case-by-case basis. To keep things simple, we'll look at the Personal Loan Agreement Template, which is the most common use case for a loan agreement form and something that can be used whenever the loan is from an individual to another individual. This includes loan agreement form for friends as well as loan agreement form for families.
Personal Loan Agreement Form Template
The personal loan agreement form is a legal document signed by two individuals willing to enter into a loan transaction. This loan form document establishes the written evidence of the terms & conditions between the two individuals, i.e. the Lender and the Borrower.
What are the Contents of a Personal Loan Agreement Form?
As the Personal Loan Agreement Form is a legal & contractual agreement between two parties, it must contain detailed information about the two parties, along with the specifics of the personal loan that the agreement is being done for.
Any personal loan agreement form must contain the following details:
- Complete details of both the borrower and the lender, i.e. their full names and complete addresses.
- The total amount of the loan, both in numbers and words.
- The interest rate for the loan amount, if applicable.
- The date when the loan agreement goes into effect.
- The date when the loan amount has to be repaid.
- The repayment schedule, if the loan amount is to be paid in installments.
- The jurisdiction under which the agreement is valid.
If the total loan amount is of high value, it is a good idea to require the signature & details of a guarantor - someone who can vouch for the borrower and work as a guarantee for repayment should the borrower be incapable of repayment.
The Loan Agreement Form Template shown below is a generic personal loan agreement template PDF that you can download and edit according to your needs. You can customize the PDF and add your own details to it using PDF Expert - the best PDF Editor app for iOS and Mac. Download PDF Expert for Free to get started with this Free PDF loan agreement template.
Click here to download the Free loan agreement template shown above.