Sample Template for Personal Loan Agreement

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A personal loan agreement is a legally binding document that outlines the terms and conditions of a personal loan. The agreement protects both the lender and the borrower and provides clarity on the loan repayment schedule, interest rates and any other terms that are agreed upon by both parties.

If you`re considering lending or borrowing money, it`s important to have a written agreement in place to ensure that everyone is on the same page. To make the process easier, we`ve created a sample template for a personal loan agreement.

Personal Loan Agreement Template

1. Borrower`s Name and Address:

The agreement should start with the full name and address of the borrower. Make sure this information is accurate and up to date.

2. Lender`s Name and Address:

Next, include the name and address of the lender. Again, make sure this information is accurate and up to date.

3. Loan Amount:

Specify the amount of money being borrowed. This should be written out in words and figures to avoid any confusion.

4. Interest Rate:

Include the interest rate that will be charged on the loan. This should be a clear and concise statement, such as “The interest rate on this loan will be 5% per annum.”

5. Repayment Schedule:

Include a detailed repayment schedule that outlines when payments are due and how much should be paid. This should also include the length of the loan and any penalties for late payments.

6. Security:

If there is any security being offered for the loan, such as a car or property, make sure to include this information in the agreement.

7. Signatures:

The agreement should be signed by both the borrower and the lender to make it legally binding.

Conclusion

A personal loan agreement is a crucial document that ensures both parties are protected. This sample template should serve as a helpful guide to create your own personal loan agreement. It`s important to remember that every loan agreement is unique, so make sure to tailor it to reflect your specific circumstances. With a well-written personal loan agreement in place, you can feel confident that your loan will be repaid on time and with no misunderstandings.

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