Money Lending Agreement (Lending Contract) Template

This Money Lending Agreement (the “Agreement”) is entered into as of [Effective Date] by and between:

Lender: [Lender Full Legal Name], address: [Address] (“Lender”).
Borrower: [Borrower Full Legal Name], address: [Address] (“Borrower”).

Lender and Borrower may be referred to individually as a “Party” and collectively as the “Parties.”

1. Loan Amount and Funding

1.1 Principal Amount. Lender agrees to loan Borrower $[Amount] (the “Loan”).
1.2 Funding Date. The Loan will be funded on: [Date].
1.3 Disbursement Method. ☐ Bank transfer ☐ Check ☐ Cash ☐ Other: [Method].
1.4 Loan Purpose (Optional). Borrower will use the Loan for: [Purpose].

2. Term and Repayment

2.1 Repayment Type (Select One):
☐ Lump sum payment of all principal (and interest, if any) due on [Due Date]
☐ Installments of $[Amount] per ☐ week ☐ month, due on the [__] day, starting [Start Date], with final payment due [Final Due Date]
☐ Other schedule: [Describe]

2.2 Payment Address/Account. Payments must be made to: [Payment details].
2.3 Payment Allocation. Payments apply to fees, then interest, then principal, unless required otherwise by law.

3. Interest (Optional)

3.1 Interest Rate. ☐ No interest ☐ Interest at [__]% per year.
3.2 Interest Accrual. Interest accrues on the unpaid principal balance from [Funding Date/Effective Date].
3.3 Maximum Permitted Rate. If the stated rate exceeds the maximum allowed by law, it will be reduced to the maximum permitted.

4. Late Fees (Optional)

4.1 Grace Period. Payments are late after [] days.
4.2 Late Fee. $[] or [__]% of the late amount (if permitted by law).

5. Prepayment

5.1 Borrower may prepay all or part of the Loan at any time ☐ without penalty ☐ with prepayment penalty: [Terms].
5.2 Prepayments will be applied to principal (and interest as applicable) unless stated otherwise.

6. Collateral / Security (Optional)

6.1 This Loan is: ☐ Unsecured ☐ Secured.
6.2 Collateral Description (if secured). [Describe collateral].
6.3 Security Documents. Borrower agrees to sign documents reasonably necessary to evidence/perfect the security interest, if applicable.
6.4 Care of Collateral. Borrower will maintain collateral in good condition and not sell or encumber it without Lender’s written consent.

7. Borrower Representations

7.1 Borrower represents that:

• Borrower has authority to enter into this Agreement

• Borrower will repay according to the terms

• Information provided to Lender is accurate to the best of Borrower’s knowledge

8. Default and Remedies

8.1 Events of Default. Default includes: non-payment, material breach, insolvency, or unauthorized transfer of collateral (if any).
8.2 Notice and Cure (Optional). Borrower has [__] days to cure after written notice, if permitted.
8.3 Acceleration. Upon default, Lender may declare the full unpaid balance immediately due, subject to applicable law.
8.4 Collection Costs. Borrower will pay reasonable collection costs and attorneys’ fees where permitted.

9. Dispute Resolution (Optional)

9.1 Forum. Disputes will be handled in: [Court/County/State].
9.2 Attorney Fees (Optional). Prevailing party: ☐ may recover fees ☐ may not recover fees.

10. Notices

10.1 Notices must be in writing and delivered to the addresses listed above.

11. Governing Law

11.1 This Agreement is governed by the laws of [State/Country].

12. Entire Agreement

12.1 This Agreement is the entire agreement between the Parties regarding the Loan and replaces prior discussions.

Signatures

By signing below, the Parties agree to this Money Lending Agreement as of the Effective Date.

Lender: [Full Name]
Date: [Date]
Signature: ___________________________

Borrower: [Full Name]
Date: [Date]
Signature: ___________________________

Co-Signer/Guarantor (Optional): [Full Name]
Date: [Date]
Signature: ___________________________

Witnesses (If Required)

Witness Name: [Name]
Date: [Date]
Signature: ___________________________

Notary / Notarization (Optional)

State of [State]
County of [County]

On [Date], before me, [Notary Name], personally appeared [Lender Name] and [Borrower Name], known to me (or satisfactorily proven) to be the persons whose names are subscribed to this Agreement, and acknowledged that they executed it for the purposes stated.

Notary Public Signature: _______________________
My Commission Expires: _______________________
Notary Seal (if applicable): ___________________