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: __________________________
