Free template · Personal and finance

Simple loan agreement template

Short answer

A simple loan agreement records money lent by one person or business to another: the amount, any interest, how and when it is repaid, and what happens if payments are missed. This template is free to fill in and download as a PDF, and you can send it for e-signature in Sign PDF with the Lender's and Borrower's boxes placed for you.

Updated 25 October 2026

What's in this simple loan agreement

The full text. Words in brackets are filled in from the form above.

1. Parties. This loan agreement is between [Lender name] of [Lender address] (the Lender) and [Borrower name] of [Borrower address] (the Borrower).
2. The loan. The Lender will lend the Borrower [Loan amount] (the Loan), paid to the Borrower on [Date the loan is paid]. The Borrower confirms receipt by signing once the Loan has been paid, or on the date of payment if signed after it.
3. Interest. Interest is charged on the outstanding balance of the Loan at [Interest rate], from the date the Loan is paid until it is repaid in full.
4. Repayment. The Borrower will repay the Loan and interest as follows: [Repayment schedule]. Everything owed under this agreement must be repaid in full no later than [Final repayment date].
5. Payment method. Payments will be made by [How payments are made], or another method the Lender agrees in writing. A payment counts as made when the Lender receives it in cleared funds.
6. Early repayment. The Borrower may repay all or part of the Loan early at any time without penalty. Interest stops on any amount repaid.
7. Late payment. If a payment is more than 14 days late, the Lender will give the Borrower written notice. Overdue amounts continue to carry interest at the rate above until paid.
8. Default. The Borrower is in default if a payment is more than 30 days late after the Lender's written notice, if the Borrower becomes insolvent or bankrupt, or if any statement the Borrower made to obtain the Loan is materially untrue.
9. Consequences of default. If the Borrower is in default, the Lender may by written notice demand immediate repayment of the whole outstanding balance and interest, and may recover reasonable costs of collection to the extent the governing law allows.
10. No security. The Loan is unsecured. No property of the Borrower is pledged or charged as security under this agreement.
11. Transfer. The Borrower may not transfer its obligations under this agreement without the Lender's written consent.
12. Governing law. This agreement is governed by the laws of [Governing law], and the courts of that place have jurisdiction over any dispute arising from it.
13. Entire agreement. This is the entire agreement about the Loan. Any change must be in writing and signed by both parties. If any part of it is found unenforceable, the rest remains in force. It may be signed electronically.
Signed by: the Lender, the Borrower, each with a signature, printed name and date.

When to use it

Use it for straightforward loans between people who know each other: family helping with a deposit, a friend lending for a car, a director lending to their own company, one small business lending to another. Writing it down protects the relationship as much as the money, because both sides can see what was agreed.

It is an unsecured loan. If the lender wants security over a house, vehicle or business assets, that needs a separate charge or security document, usually prepared by a lawyer.

What the key clauses do

People searching for a loan agreement template want these points covered in plain words, and courts look for them if a loan is disputed.

Loan amount and date: how much is lent and when it is paid over.
Interest: a fixed rate, or zero for an interest-free family loan.
Repayment: the instalment amount and schedule, and the final date by which everything must be repaid.
Early repayment: the borrower may repay early without penalty.
Late payment and default: what counts as default, and that the lender can then demand the full balance.

How to adapt it

Set out the repayment schedule clearly, for example '12 monthly payments of $850 on the 1st of each month from 1 January 2027'. Many countries cap interest rates or regulate lending to consumers, and a loan to an individual made in the course of business may need a licence or specific disclosures. Interest received may also be taxable.

This template is a starting point, not legal advice or financial advice. For large sums, secured loans, or any lending done as a business, have a lawyer check it under the governing law you choose.

Getting the loan agreement signed

Fill in the boxes above and download the loan agreement as a PDF, free and with no account. To get it signed, send it from Sign PDF: the signature, name and date boxes for the Lender and the Borrower are already placed and labelled, so you only add each signer's email.

Each signer opens an email link, confirms a six-digit code sent to their inbox and signs in the browser on a phone or laptop, with no app and no account. When the last person signs, the boxes are written into the PDF, a certificate of completion is added at the end, and the file is sealed with a digital signature and a timestamp so any later change shows.

The Light plan at $5 a month covers 2 documents a month. The Full plan at $10 a month has no limit and lets you save this document as a template, with a signing order and reminders.

Questions people ask

Does a loan agreement need to be witnessed?

Usually not. A simple loan agreement is an ordinary contract. Some countries require a witness or deed form for certain loans or security, so check if you are adding security.

Can a loan agreement be interest-free?

Yes. Enter 0% in the interest box. Family loans are often interest-free, though some tax systems have rules on large interest-free loans.

What is the difference between a loan agreement and a promissory note?

A promissory note is a short promise by the borrower to repay. A loan agreement sets out both sides' terms in more detail, including default and early repayment, and both parties sign.

Can I sign a loan agreement electronically?

For an ordinary unsecured loan, an electronic signature is accepted in most countries. Sign PDF records who signed and when in a certificate attached to the file.

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