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Free loan agreement template

A complete, blank loan contract you can download and fill in. Five variants cover the way most loans are actually written — pick the one that matches your deal, then download it in PDF or Word.

Five variants, one contract

They share the same core clauses. What changes is how repayment, security and liability are written.

Preview

Every blank line is a field for you to complete: parties, amounts, rate, dates, and the jurisdiction whose law governs the loan.

Loan Agreement

Dated ____________ · ____________

This Loan Agreement (the “Agreement”) is made and entered into on ____________ at ____________.

BETWEEN

____________, of ____________ (hereinafter the “Lender”);

AND

____________, of ____________ (hereinafter the “Borrower”).

The Lender and the Borrower are each a “Party” and together the “Parties”. WHEREAS the Borrower has requested a loan facility and the Lender has agreed to advance the same upon the terms below, the Parties agree as follows:

1. Loan Amount

1.1 The Lender agrees to lend, and the Borrower agrees to borrow, the principal sum of ____________ (____________ ____________ only) (the “Loan”).

1.2 The Loan shall be disbursed to the Borrower on or about ____________.

2. Interest

2.1 Interest shall accrue on the Loan at the rate of ____% per annum, calculated on a reducing balance basis.

3. Repayment

3.1 The Borrower shall repay the Loan together with interest in ____ equal monthly instalments of ____________ each (the “Instalment”).

3.2 The first Instalment shall fall due on ____________, and a further Instalment shall be due on the corresponding day of each month thereafter until the Loan is repaid in full on or before ____________.

3.3 The total amount repayable under this Agreement is ____________, comprising principal of ____________ and interest of ____________.

4. Prepayment

The Borrower may prepay all or part of the outstanding Loan at any time without penalty. Any prepayment shall be applied towards the outstanding principal and shall reduce the number or amount of remaining Instalments accordingly.

5. Late Payment

If any Instalment is not paid on its due date, the Borrower shall pay a late charge of ____% of the overdue Instalment for each period it remains unpaid, without prejudice to the Lender’s other rights under this Agreement.

6. Events of Default & Acceleration

It shall be an event of default if any Instalment remains unpaid for more than ____ days, or if the Borrower breaches any term of this Agreement or becomes insolvent. Upon an event of default, the entire outstanding balance, together with accrued interest and charges, shall become immediately due and payable at the Lender’s option.

7. Representations

The Borrower represents that all information provided to the Lender is true and accurate, that it has the legal capacity to enter into this Agreement, and that doing so does not breach any other obligation binding upon it.

8. Governing Law & Jurisdiction

This Agreement shall be governed by and construed in accordance with the laws of ____________, and the Parties submit to the exclusive jurisdiction of its courts.

9. Entire Agreement

This Agreement constitutes the entire understanding between the Parties and supersedes all prior arrangements. Any amendment must be in writing and signed by both Parties. If any provision is held unenforceable, the remaining provisions shall continue in full force.

Signed

IN WITNESS WHEREOF the Parties have executed this Loan Agreement on the date first written above.

________________
Lender
Date: ____________
________________
Borrower
Date: ____________
________________
Witness

How to use this template

  1. 1Pick your variantChoose the agreement that matches your loan — a simple fixed loan, an instalment plan, an asset-backed loan, a one-sided IOU, or a group loan with shared liability.
  2. 2Download and fill it inTake the Word file if you want to type into it and keep editing, or the PDF if you would rather print it and complete it by hand.
  3. 3Sign and keep a copyBoth parties sign and date, and a witness signs if your jurisdiction expects one. Each party keeps an executed original.

What's in the agreement

  • Parties, addresses and the date the agreement is made
  • Principal, written in both figures and words
  • Interest rate, and whether it is flat or reducing balance
  • Repayment schedule — instalment amount, frequency and final date
  • Prepayment: settling early without a penalty
  • Security and collateral, for asset-backed loans
  • Late payment fees and the grace period before default
  • Events of default and what the lender may do
  • Governing law, jurisdiction and signature blocks

Want the numbers filled in for you?

The free loan agreement generator takes the same contract, works out the instalment, total interest and payment dates from the loan terms, and writes them into the document before you download it.

Open the generator

Loan agreement template questions

Is a template loan agreement legally binding?
A loan agreement becomes binding when both parties sign it with the intention of being bound, and it records the essential terms — who is lending, how much, on what interest, and when it is repayable. This template captures those terms. What it cannot do is account for the consumer-credit, interest-cap and disclosure rules that differ from country to country, so have a local lawyer review it before you lend commercially or at scale.
Do I need a witness to sign?
It depends where you are. Many jurisdictions do not require a witness for a simple loan, but a witnessed signature is far easier to defend if the borrower later disputes signing. The template includes a witness block for that reason — leave it blank if you do not need it.
Should I download the PDF or the Word version?
Take the Word file if you want to type the details in, reword a clause, or add your own letterhead — it opens as an editable document in Word, Google Docs and LibreOffice. Take the PDF if you would rather print it and complete it by hand, or need the layout to stay exactly as it is.
What interest rate can I charge?
Most countries cap the rate a lender may charge, and several require a licence above a certain volume. The template leaves the rate blank deliberately — fill in a figure you have confirmed is lawful where the loan is made. Writing an unlawful rate into a contract can make the interest, and sometimes the whole agreement, unenforceable.
What's the difference between a secured and an unsecured loan?
A secured loan is backed by a specific asset — a vehicle, equipment, title deeds — that the lender can claim if the borrower defaults. An unsecured loan is backed only by the borrower’s promise. Use the secured variant when there is collateral: it adds the clauses that describe the asset, create the security interest, and set out repossession.
What happens if the borrower stops paying?
The agreement sets a grace period, after which a missed instalment becomes an event of default. At that point the lender may declare the whole outstanding balance immediately due, charge the agreed late fee, and — on a secured loan — enforce against the collateral. Enforcement itself still follows your local law, including any notice you must give first.

Keep going

This template is provided for general information and is not legal advice. Lending is regulated differently in every country — have a qualified lawyer in your jurisdiction review the agreement before you rely on it.

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