Loan agreement template

How it works

1. Enter the amount, when and how it was paid, and how it will come back: by a date, or in monthly instalments.
2. Add an interest rate if there is one; the schedule then shows principal and interest for every month.
3. Fill in the lender and the borrower, and anything else you agreed.
4. Download, print two copies, and both sign each. Keep one each.

Frequently asked questions

Is a loan agreement between family members enforceable?

Yes. Signed by both and with clear terms, it is a contract like any other. A family loan with nothing in writing is much easier to argue was a gift, which is the main reason to write it down.

Does it need a witness?

A simple loan agreement does not in the US or the UK, but a witness who saw you both sign makes it harder to deny later. Put them in the witnesses box and a signature block appears for each.

What if the borrower stops paying?

With monthly repayment, the agreement lets the lender demand the whole balance in writing once a payment is more than 14 days late. After that the usual route is a formal demand letter and then a small-claims court.

Do I have to charge interest?

Not for the agreement to be valid. In the US an interest-free family loan of more than $10,000 can have gift-tax consequences; for larger sums check the applicable federal rate or ask an accountant.

Is what I type uploaded?

No. The PDF is made in your browser and nothing you type leaves your device. Nothing of ours is printed on the paper.

Is this legal advice?

No. It is a form. For a large sum, or a loan you expect to be difficult, talk to a lawyer.