Personal Loan Agreement Template – California

Personal Loan Agreement

This Personal Loan Agreement ("Agreement") is made and entered into on [Date], by and between:

Lender: [Full Name / Company Name]
Address: [Lender’s Address]

and

Borrower: [Full Name / Company Name]
Address: [Borrower’s Address]

Together referred to as the "Parties."

1. Loan Amount and Purpose

The Lender agrees to loan the Borrower the principal sum of $[Loan Amount] (the "Loan"). The Parties acknowledge the intended purpose as [e.g., debt consolidation, education, medical expense], which does not limit lawful use unless expressly restricted herein. Loan proceeds will be disbursed net of any agreed fees listed in Section 2.

2. Disbursement and Funding Method

Funds shall be disbursed on or before [Date] by [Payment Method — ACH/wire/check]. If payment is electronic, the Borrower shall provide accurate account details at least [X] business days prior to disbursement. Any transfer charges imposed by a bank or remittance service shall be borne by ☐ Lender ☐ Borrower.

3. Interest

☐ The Loan shall bear interest at an annual rate of [X]% simple interest on the outstanding principal. ☐ This is an interest‑free loan. If selected, the Parties confirm that no disguised interest or fees apply. Interest accrues from the Disbursement Date unless otherwise stated.

4. Repayment Schedule and Method

Repayment begins on [Start Date] and continues ☐ Weekly ☐ Monthly ☐ Other: [Specify], with installments of $[Amount]. Final maturity is [Maturity Date]. Payments are made via [Method — bank transfer, cash receipt], and receipts or confirmations shall be kept by both Parties. Prepayment is ☐ allowed without penalty ☐ subject to an early repayment fee of [X]% of the prepaid amount.

5. Late Payment and Returned Payments

A late fee of $[Late Fee] applies if an installment is more than [X] days past due, to the extent permitted by law. Returned or reversed payments may incur reasonable processing charges. Consistent late payments may constitute default under Section 7.

6. Collateral and Security (Optional)

☐ Secured by: [Description — vehicle, equipment, deposit account]. ☐ Unsecured. If secured, the Borrower grants a security interest and agrees to execute any additional instruments reasonably requested to perfect such interest. The Parties will not pledge collateral that is already encumbered without disclosure.

7. Default; Acceleration; Remedies

Default includes failure to pay when due, providing false information, bankruptcy filing, or material breach. Upon default, the Lender may declare all outstanding amounts immediately due and pursue lawful remedies, including realization on collateral if applicable. The Parties agree to act in good faith to explore cure options before litigation when practical.

8. Representations and Warranties

Borrower represents capacity to enter this Agreement and that the Loan will be used for lawful purposes. Lender represents right to lend the funds and that the funds are not proceeds of illegal activity. Both Parties confirm the information provided is accurate to the best of their knowledge.

9. Notices; Records

Notices shall be in writing and deemed delivered if sent by personal delivery, certified mail, or recognized courier to the addresses above. Email copies may be sent for convenience if addresses are exchanged, but do not replace formal notice unless expressly agreed. Each Party will retain payment records for at least [X] years.

10. Governing Law; Dispute Resolution

This Agreement is governed by the laws of [State/Country]. Disputes shall be resolved in the courts of [County/City], [State], unless the Parties agree to mediation or arbitration in a signed addendum. Venue and jurisdiction are as stated, and each Party waives objections to personal jurisdiction to the extent lawful.

11. Entire Agreement; Amendments; Severability

This document constitutes the entire agreement and supersedes prior understandings. Amendments must be in writing and signed by both Parties. If any provision is held invalid, the remainder remains enforceable.

IN WITNESS WHEREOF, the Parties have executed this Personal Loan Agreement as of the date first written above.

Lender Signature
Name: __________________________
Date: __________________________

Borrower Signature
Name: __________________________
Date: __________________________