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Personal Loan Agreement Template – New York
Define clear loan terms and repayment obligations in New York with this Personal Loan Agreement Template.
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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. Principal and Stated Purpose
Lender extends a principal sum of $[Loan Amount] to Borrower. The stated purpose is [Purpose], which is informational unless a restriction is expressly included. No broker or origination fee is due unless specified in Section 2.
2. Funding; Delivery of Proceeds
Disbursement occurs on/before [Date] via [ACH/wire/check] to the account designated by Borrower. Borrower shall confirm routing details in writing; Lender will retain proof of transfer. Bank fees are allocated to ☐ Lender ☐ Borrower.
3. Interest and APR Disclosure
☐ Interest at [X]% per annum simple interest on unpaid principal; interest accrues from the Disbursement Date. ☐ Interest‑free loan — no interest or disguised charges will be collected. If required, an amortization schedule may be attached as Exhibit A.
4. Repayment; Prepayment; Application of Payments
Payments of $[Amount] are due ☐ Weekly ☐ Monthly starting [Start Date]; maturity [Maturity Date]. Payments apply first to fees (if any), then interest (if any), then principal, unless otherwise agreed. Prepayment is ☐ permitted without penalty ☐ subject to a fee of [X]%.
5. Late Charges; Returned Items
Late fee of $[Late Fee] after [X] days; returned payments may incur $[Return Fee]. Persistent delinquency may trigger acceleration as described in Section 7. Borrower should notify Lender promptly of anticipated issues.
6. Security; UCC Filings (If Any)
☐ Secured — Borrower grants a security interest in [Collateral] and consents to filings necessary to perfect the interest. ☐ Unsecured — no collateral pledged. Collateral must be owned by Borrower and free of undisclosed liens.
7. Events of Default; Acceleration
Default includes missed payments, insolvency, false statements, or breach of covenants. Lender may accelerate all amounts due and seek lawful remedies, including recovery of collection costs where permitted. A brief cure period of [X] days may be provided if specified here: [Cure Terms].
8. Mutual Representations
Borrower confirms lawful purpose and accurate information; Lender confirms authority to lend. Both Parties acknowledge they have read and understood the Agreement. Each Party is responsible for its own tax and legal advice.
9. Notices; Communication
Formal notices via certified mail or courier to addresses above; email copies may be provided for convenience. Keep contact information current and notify the other Party of changes within [X] days. Records of notices and payments should be retained.
10. Governing Law; Venue; ADR
Governing law is [State/Country]; venue is [County/City], [State]. Parties may agree in writing to mediation or arbitration. Judgment may be entered on an arbitration award where permitted.
11. Integration; Amendments; Severability
Entire agreement clause; no oral modifications. Changes require written signatures of both Parties. Invalid provisions shall be replaced with valid terms closest in intent.
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: __________________________
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Personal Loan Agreement Template – New York
New York Personal Loan Agreement FAQ
What is a Personal Loan Agreement?
A Personal Loan Agreement is a legally binding contract between a lender and a borrower that outlines the key terms of a loan, including the loan amount, interest rate, repayment schedule, and any applicable fees or penalties. The agreement protects both parties by clearly defining their rights and obligations, helping to prevent future disputes or misunderstandings.
Essentially, it sets out all the important details of how the loan will be repaid and under what conditions. Reviewing the terms carefully before signing — especially the interest rate, repayment timeline, and any late payment clauses — can help you avoid unexpected costs or issues later.
When to use a Personal Loan Agreement?
A Personal Loan Agreement should be used whenever money is being lent between two parties — whether between friends, family members, or through a business or financial institution. It’s especially important when the loan involves a significant amount of money, has repayment terms over time, or includes interest or collateral.
The agreement helps prevent misunderstandings by clearly outlining how much is being borrowed, when it must be repaid, and under what conditions. It’s also useful as legal proof of the debt, protecting both the lender and the borrower if any disputes arise later.
What should be included in a Personal Loan Agreement?
A Personal Loan Agreement should clearly outline all the terms and conditions of the loan to protect both the borrower and the lender. While simple loans may only require a promissory note, more detailed agreements should include the following key elements:
Identifications: Full names and addresses of the lender and borrower.
Effective dates: The start date of the agreement and any other important deadlines.
Loan amount: The total sum being borrowed (the principal).
Collateral: If the loan is secured, specify the asset pledged as security.
Interest rate: The cost of borrowing, whether fixed or variable. Any fees or additional costs should be stated, often reflected as an APR (Annual Percentage Rate).
Repayment schedule: How and when payments will be made — including frequency and duration.
Penalties: Details of late payment fees or consequences of default.
Jurisdiction: The state or area whose laws will govern the agreement.
Severability clause: Ensures that if one part of the contract is invalid, the rest remains enforceable.
Entire agreement clause: States that the written contract represents the full understanding between both parties.
Signatures: Both parties must sign and date the agreement for it to be legally binding.
Having these sections clearly written helps prevent confusion and ensures that both sides understand their rights and responsibilities from the start.
Can a Personal Loan Agreement be changed after signing?
Yes, a Personal Loan Agreement can be changed after signing, but only if both the lender and the borrower agree to the modifications. Any changes — such as adjustments to the repayment schedule, interest rate, or loan amount — must be made in writing through an official amendment or addendum to the original agreement.
Both parties should sign and date the amendment for it to become legally valid. Verbal changes or informal agreements are not enforceable and can lead to misunderstandings or legal disputes. Keeping all modifications clearly documented helps ensure transparency, protects both parties, and maintains the integrity of the original contract.
Does a Personal Loan Agreement need to be notarized or witnessed in New York?
In New York, a Personal Loan Agreement does not need to be notarized or witnessed to be legally valid. A loan agreement is enforceable as long as it clearly outlines the terms — such as the loan amount, repayment schedule, and interest rate — and is signed by both the lender and the borrower.
However, notarizing the document can provide an extra layer of legal protection. A notarized signature helps verify the identities of the parties and can make it easier to prove the agreement’s authenticity in court if a dispute arises.
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