Loan Agreement by EasyLegalDocs
Updated 12 November 2025
This Loan Agreement template outlines the terms and conditions for a financial loan between a lender and a borrower. It details the loan amount, interest rate, repayment schedule, and provisions for late payments and default. The agreement also includes sections for optional collateral, prepayment, representations, governing law, and dispute resolution.
LOAN AGREEMENT
This Loan Agreement (“Agreement”) is made and entered into as of [effective date],
BY AND BETWEEN: | Lender: [lender name], with a principal address at ____________________________. |
AND: | Borrower: [borrower name] with a principal address at ____________________________. The Lender and Borrower may each be referred to individually as a "Party" and collectively as the "Parties." |
LOAN TERMS
1.1 Loan Amount
The Lender agrees to loan the Borrower the principal sum of $[loan amount] (the “Loan”) on the terms and conditions set forth in this Agreement.
1.2 Interest Rate
The Loan shall bear interest at a rate of [interest rate]% per annum, calculated on the outstanding principal balance.
1.3 Repayment Terms
The Borrower shall repay the Loan as follows:
Installment Payments: The Borrower shall make [number of payments] equal monthly/quarterly payments of $[installment amount], beginning on [first payment date] and continuing until [maturity date].
Final Payment: The final installment shall include all outstanding principal and accrued interest.
PAYMENT METHOD
All payments shall be made via [payment method] to the Lender’s designated account at:
Bank Name: ________________________________________
Account Number: ____________________________________
Routing Number: ____________________________________
or any other method agreed to in writing by the Lender.
LATE PAYMENT AND DEFAULT
3.1 Late Payment Penalty
If the Borrower fails to make a scheduled payment within [grace period days] days of the due date, a late fee of $[late fee amount] shall be assessed.
3.2 Default
The Borrower shall be considered in default if:
Any payment remains unpaid for more than [grace period days] days beyond its due date.
The Borrower becomes insolvent or files for bankruptcy.
The Borrower makes any false statements regarding their financial condition.
Upon default, the entire outstanding Loan balance, including accrued interest, shall become immediately due and payable at the Lender’s sole discretion.
COLLATERAL (IF APPLICABLE)
As security for repayment of the Loan, the Borrower hereby grants the Lender a security interest in __________________________________________________________________________________________________________________________________________________
In the event of default, the Lender shall have the right to take possession of and sell the collateral to satisfy the debt.
PREPAYMENT
The Borrower may prepay the Loan in whole or in part at any time without penalty. Any prepayments shall first be applied to outstanding interest before reducing the principal balance.
REPRESENTATIONS AND WARRANTIES
6.1 Borrower’s Representations
The Borrower represents and warrants that:
They have the legal capacity to enter into this Agreement.
The Loan will be used for [loan purpose].
They have the financial ability to repay the Loan in full.
6.2 Lender’s Representations
The Lender represents and warrants that:
They have the legal right to provide the Loan.
No third-party approvals are required for the Loan.
EVENTS OF ACCELERATION
The Lender may declare the entire Loan balance due immediately if any of the following occur:
The Borrower fails to make a payment within [grace period days] days of the due date.
The Borrower defaults on any other financial obligation.
The Borrower transfers or sells a significant portion of their assets without the Lender’s prior written consent.
GOVERNING LAW AND DISPUTE RESOLUTION
8.1 Governing Law
This Agreement shall be governed by and construed in accordance with the laws of the State of [governing law state].
8.2 Dispute Resolution
Any dispute arising out of or relating to this Agreement shall first be attempted to be resolved through mediation. If mediation fails, the Parties agree to submit to binding arbitration in [arbitration location], in accordance with the rules of the Arbitration Association of the State.
NO WAIVER
Failure by the Lender to enforce any provision of this Agreement shall not constitute a waiver of their rights to enforce any other provision.
ENTIRE AGREEMENT
This Agreement represents the entire agreement between the Parties and supersedes all prior agreements, whether written or oral. Any modification must be made in writing and signed by both Parties.
SEVERABILITY
If any provision of this Agreement is found to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.
NOTICES
All notices or communications required under this Agreement shall be in writing and sent to the Parties at their respective addresses via certified mail or electronic mail.
SIGNATURES
IN WITNESS WHEREOF, the Parties have executed this Loan Agreement as of the date first written above.
Lender:_________________________
Signature:_______________________
Name:[lender name]
Date:[effective date]
Borrower:_______________________
Signature:_______________________
Name: [borrower name]
Date:[effective date]
About this template
What is this template?
Loan Agreement by EasyLegalDocs is a free, ready-to-use Banking and finance template you can open, customize, and download on GitLaw. It gives you a professionally structured starting point, so you never have to draft from a blank page. The wording is plain and modern, organized into clear sections that are easy to read, edit, and adapt to your own situation before you share or sign it.
When should you use it?
Reach for this Banking and finance template whenever you need a reliable agreement quickly and want to be sure the essentials are covered. It suits individuals, freelancers, startups, and established businesses alike. Instead of paying for a document drafted from scratch, you can start here, tailor the details to your arrangement, and have a polished draft ready in minutes. This version is drafted with United States of America in mind, though you should always review the final wording against the laws that apply to you.
What's typically included?
A well-drafted Banking and finance usually sets out the parties involved, the scope of the agreement, and each side's rights and responsibilities. Expect sections covering key terms and definitions, how long the agreement lasts, how it can be ended, and what happens if something goes wrong. This template brings those building blocks together in a sensible order, so you can focus on the specifics rather than worrying about what to include. Open it to read the full document, then sign up to edit, negotiate, and e-sign it directly in GitLaw.