Free Legal Loan Agreement Template
Legal Loan Agreement Format
This Loan Agreement ("Agreement") is made and entered into as of the ___ day of ________, 20, by and between:
Lender:
Name: ______________________________
Address: ____________________________
Contact Number: _____________________
Borrower:
Name: ______________________________
Address: ____________________________
Contact Number: _____________________
Hereinafter collectively referred to as the "Parties."
1. LOAN AMOUNT AND TERMS
1.1 The Lender agrees to lend the Borrower the principal sum of ___________ (Currency) ___________ ("Loan Amount").
1.2 The Borrower agrees to repay the Loan Amount, including interest, in accordance with the terms set forth in this Agreement.
2. INTEREST RATE
2.1 The Loan shall bear interest at the rate of _____% per annum, calculated on the outstanding principal balance.
2.2 Interest shall accrue from the date the Loan Amount is disbursed until it is fully repaid.
3. REPAYMENT TERMS
3.1 The Borrower shall repay the Loan as follows:
-
Installment Amount: __________________________
-
Frequency of Payment: ________________________
-
First Payment Date: __________________________
3.2 All payments shall be made to the Lender via the following method:
-
[Bank Transfer/Check/Cash] to Account Number ____________________________ at __________________________ Bank.
4. PREPAYMENT
The Borrower may prepay the Loan, in whole or in part, at any time without penalty, provided that any accrued interest is also paid at the time of prepayment.
5. DEFAULT
5.1 The Borrower shall be in default if:
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Payment is not received within _____ days of the due date.
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The Borrower files for bankruptcy or becomes insolvent.
5.2 Upon default, the Lender may:
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Demand immediate repayment of the full Loan Amount and accrued interest.
-
Take legal action to recover the Loan Amount and accrued interest.
6. SECURITY (if applicable)
6.1 The Loan shall be secured by the following collateral: _____________________________.
6.2 The Borrower grants the Lender a security interest in the collateral until the Loan is fully repaid.
7. GOVERNING LAW
This Agreement shall be governed by and construed by the laws of the State/Country of ____________________________.
8. ENTIRE AGREEMENT
This Agreement constitutes the entire understanding between the Parties and supersedes all prior agreements, representations, and understandings, whether written or oral.
9. AMENDMENTS
This Agreement may be amended only by a written agreement signed by both Parties.
10. SIGNATURES
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above.
Lender:
Signature: ___________________________
Printed Name: ________________________
Date: _______________________________
Borrower:
Signature: ___________________________
Printed Name: ________________________
Date: _______________________________
