Business & Finance

Loan Agreement Template

4.5
9,903 Ratings
131,818 Downloads
Updated August 07, 2025

A legal document between a creditor who lends money to a borrower, who repays the loan (with or without interest). Includes loan amount, interest rate, repayment schedule, security, and default terms.

Key Provisions

Loan Amount & Interest

Principal sum, APR, compounding method, and usury compliance.

Repayment Schedule

Weekly, monthly, or lump-sum payments with defined due dates.

Security / Collateral

Secured vs. unsecured designation with collateral descriptions.

Default & Remedies

Late fees, grace periods, acceleration clauses, and penalties.

What is your role?

Select your role to customize the agreement for your needs.

Auto-Usury Compliance Checker

Select a state and enter your proposed interest rate to instantly verify compliance with state usury laws.

State-by-State Usury Registry

StateMax Rate
Alabama(AL)8%
Alaska(AK)10.5%
Arizona(AZ)10%
Arkansas(AR)17%
California(CA)10%
Colorado(CO)12%
Connecticut(CT)12%
Delaware(DE)5%
Florida(FL)18%
Georgia(GA)7%
Hawaii(HI)10%
Idaho(ID)12%
Illinois(IL)9%
Indiana(IN)8%
Iowa(IA)5%
Kansas(KS)15%
Kentucky(KY)8%
Louisiana(LA)12%
Maine(ME)6%
Maryland(MD)8%
Massachusetts(MA)20%
Michigan(MI)7%
Minnesota(MN)8%
Mississippi(MS)10%
Missouri(MO)9%
Montana(MT)15%
Nebraska(NE)16%
Nevada(NV)No Cap
New Hampshire(NH)No Cap
New Jersey(NJ)6%
New Mexico(NM)15%
New York(NY)16%
North Carolina(NC)8%
North Dakota(ND)6%
Ohio(OH)8%
Oklahoma(OK)6%
Oregon(OR)12%
Pennsylvania(PA)6%
Rhode Island(RI)21%
South Carolina(SC)8.75%
South Dakota(SD)No Cap
Tennessee(TN)10%
Texas(TX)10%
Utah(UT)No Cap
Vermont(VT)12%
Virginia(VA)12%
Washington(WA)12%
Washington D.C.(DC)24%
West Virginia(WV)8%
Wisconsin(WI)5%
Wyoming(WY)7%

Amortization Calculator

Enter your loan details to see your monthly payment, total interest, and a complete month-by-month breakdown.

Loan Agreement by Type

10 specialized templates for every lending scenario.

Personal Loan

Standard loan between individuals with fixed terms and repayment schedule.

PDFWordODT

Loan Extension

Extends the repayment period of an existing loan agreement.

PDFWordODT

Family Loan

Loan between family members, often with favorable or zero-interest terms.

PDFWordODT

I Owe You (IOU)

Simple acknowledgment of debt without detailed repayment terms.

PDFWordODT

Payment Plan

Structured installment agreement for repaying an existing obligation.

PDFWordODT

Personal Guaranty

Third-party guarantee to repay if the primary borrower defaults.

PDFWordODT

Promissory Note

Written promise to pay a specific sum by a certain date or on demand.

PDFWordODT

Release of Debt

Legal release of the borrower from all or part of an outstanding debt.

PDFWordODT

Release of Guaranty

Releases a guarantor from their obligation under a guaranty agreement.

PDFWordODT

Small Business Loan

Loan agreement structured for business purposes with commercial terms.

PDFWordODT

5-Step Loan Process

A guided walkthrough from choosing your loan type through final disbursement.

Determine the category of loan that best fits your needs based on the purpose and relationship between the parties.

Business LoanCar / Auto LoanFHA LoanHome EquityPayday LoanPersonal LoanStudent Loan

Loan Glossary

Essential terms you should understand before signing any loan agreement.

Frequently Asked Questions

Common questions about loan agreements, credit, and lending laws.

Document Preview

Preview the sections that will be generated in your completed Loan Agreement.

LOAN AGREEMENT

Legal Document

Section I.The Parties
  • Date: [DATE]
  • Borrower: [BORROWER NAME], [ADDRESS]
  • Lender: [LENDER NAME], [ADDRESS]
Section II.Loan Amount
  • The Lender agrees to lend the Borrower the sum of $[AMOUNT] (the "Principal").
Section III.Interest Rate
  • Option A: The loan SHALL bear interest at a rate of [X]% per annum.
  • Compounding: ☐ Annually ☐ Monthly ☐ Daily
  • Option B: The loan shall NOT bear interest.
Section IV.Term
  • The loan shall be repaid in full by [DUE DATE].
Section V.Payments
  • Payment Schedule: ☐ Weekly ☐ Bi-Weekly ☐ Monthly ☐ Lump Sum ☐ Other
  • Payments shall commence on [START DATE] and continue until the loan is repaid in full.
Section VI.Late Payment
  • A grace period of [X] days shall apply after each payment due date.
  • A late fee of $[AMOUNT] shall be assessed for payments not received within the grace period.
Section VII.Prepayment
  • ☐ The Borrower MAY prepay without penalty.
  • ☐ The Borrower SHALL be subject to a prepayment penalty of [X]%.
Section VIII.Security
  • ☐ The Borrower SHALL pledge the following collateral: [DESCRIPTION]
  • ☐ The loan is UNSECURED — no collateral is pledged.
Section XV.Governing Law
  • This Agreement shall be governed by the laws of the State of [STATE].

Borrower Signature & Date

Lender Signature & Date

Guarantor (if applicable) Signature & Date

Language changed to English