Finance and corporate
Loan agreement template
Loan agreement: A loan agreement records money lent by a lender to a borrower, with the amount, interest, repayment schedule, security and what happens on default.
Fill in the terms and send it for e-signature in minutes.
Use this template freeWhen to use a loan agreement
- Shareholder or director loans to a company
- Loans between businesses
- Personal loans between family or friends
Loan agreement template: clause-by-clause outline
Sample starting wording for each clause. Replace the text in [brackets] with your details.
Loan
The Lender will lend the Borrower [amount] on [date].
Interest
Interest accrues at [x]% per year, calculated daily and paid [monthly].
Repayment
The Borrower will repay the loan in [number] monthly instalments of [amount] starting [date].
Prepayment
The Borrower may repay early without penalty on [30] days’ notice.
Security
The loan is [unsecured / secured by a charge over asset].
Default
If the Borrower misses a payment for [14] days, the whole loan becomes immediately due.
What to check before you sign
- Does the interest rate comply with usury or lending laws, and is a lending licence needed?
- Is security properly registered?
- Are tax and withholding on interest considered?
Signing formalities: Security over assets often needs registration, and some loan or guarantee documents must be executed as deeds.
How to send a loan agreement for e-signature
- Start from the built-in template. Fill in the parties and terms; the contract and its plain-language review write themselves.
- Check it against your playbook. Points outside your positions are flagged, and approval rules route it to Legal when needed.
- Send it by email. Signers get a plain-language review and a secure link, sign on any device in the order you set, and can suggest changes as tracked changes.
- Keep the signed PDF. Everyone receives it with a certificate of completion, and key dates go to Upcoming with reminders.
Loan agreement template: frequently asked questions
Do I need a written agreement for a loan to a friend or family member?
It is strongly advisable: it proves the money was a loan and sets repayment terms.
Does a loan need to be secured?
Not necessarily. Security reduces the lender’s risk but may need registration to be effective.
Is an electronically signed loan agreement legally binding?
Often, but not always. Security over assets often needs registration, and some loan or guarantee documents must be executed as deeds. econtracts.ai shows the rules for the contract’s governing law before you send it.
Can I get a loan agreement I received reviewed?
Yes. Upload it to econtracts.ai and you get a plain-language review: key dates, money and points to check, each quoting the clause it comes from.
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This outline is a starting point for discussion, not legal advice, and it is not a complete contract. Laws differ by country and sector; have a qualified lawyer review contracts that matter.