Personal Loan Contract Template

Personal Loan Contract Template

This Personal Loan Contract (“Agreement”) is made as of [Date of Agreement].

1. Parties

Lender:
Full Legal Name: [Lender Full Legal Name]
Business Name (if applicable): [Lender Business Name]
Address: [Lender Street Address]
City, State/Province, ZIP/Postal Code, Country: [Lender City/State/ZIP/Country]
Phone: [Lender Phone Number]
Email: [Lender Email Address]

Borrower:
Full Legal Name: [Borrower Full Legal Name]
Business Name (if applicable): [Borrower Business Name]
Address: [Borrower Street Address]
City, State/Province, ZIP/Postal Code, Country: [Borrower City/State/ZIP/Country]
Phone: [Borrower Phone Number]
Email: [Borrower Email Address]

2. Loan Details

Loan Amount: [Loan Amount in figures] ([Loan Amount in words]) (“Loan”).

Currency: [Loan Currency]

Purpose of Loan (general description): [Purpose of Loan]

Loan Type:
☐ Unsecured personal loan
☐ Secured personal loan (see Section 8)

3. Disbursement of Loan

Disbursement Date: [Disbursement Date]

Disbursement Method: [Bank Transfer / Check / Other]

Recipient Account or Payee Details: [Borrower Account or Payee Details]

The Borrower acknowledges receipt of the Loan (or agrees to acknowledge receipt when disbursed) and agrees to repay the Loan in accordance with this Agreement.

4. Interest

Select and complete one option:

☐ Interest-Free Loan
Interest Rate: 0% (no interest will be charged on the unpaid principal).

☐ Interest-Bearing Loan
Annual Interest Rate: [Interest Rate %] per year
Interest Basis: [Interest Basis, such as Simple Interest]

Interest Start Date: [Interest Start Date]

Interest will accrue on the unpaid principal balance from the Interest Start Date until the Loan is repaid in full, unless otherwise stated in this Agreement.

5. Repayment Terms

Choose one repayment structure and complete the details.

5.1 Installment Payments

The Borrower will repay the Loan as follows:

Number of Installments: [Number of Installments]
Installment Amount: [Installment Amount]
Payment Frequency: [Monthly / Quarterly / Other]
First Payment Due Date: [First Payment Due Date]
Subsequent Payments: [Description of Subsequent Due Dates]

On the final payment date, any remaining unpaid principal and accrued interest (if any) will be due in full.

OR

5.2 Single Lump-Sum Payment

The Borrower will repay the entire outstanding principal and any accrued interest (if applicable) in one lump sum on or before:

Maturity Date (Final Due Date): [Maturity Date]

5.3 Application of Payments

Unless the parties agree otherwise in writing, each payment will be applied in the following order:

1. Accrued but unpaid interest (if any).

2. Unpaid principal.

6. Method of Payment

All payments under this Agreement will be made in [Currency] by: [Bank Transfer / Check / Other].

Payment Details:
Payee / Account Name: [Payee or Account Name]
Bank / Institution: [Bank or Institution Name]
Account Number / IBAN: [Account Number or IBAN]
Payment Reference: [Payment Reference]

7. Prepayment

The Borrower may prepay all or any part of the outstanding principal and accrued interest (if any) at any time before the due dates without penalty, unless stated otherwise here: [Prepayment Terms].

Any prepayment will first be applied to accrued but unpaid interest (if any) and then to principal, unless the parties agree in writing to a different order.

8. Security (If Applicable)

This section applies only if the Loan is marked as secured in Section 2.

8.1 Collateral

To secure the Borrower’s obligations under this Agreement, the Borrower grants the Lender a security interest in the following property (“Collateral”):

Description of Collateral: [Description of Collateral]
Identification Details: [Serial Number / VIN / Account Number / Other Identifier]
Location of Collateral: [Location of Collateral]

8.2 Ownership and Existing Liens

The Borrower represents that the Borrower owns the Collateral or otherwise has authority to grant a security interest, and that any existing liens or security interests in the Collateral are described here: [Existing Liens or “None”].

8.3 Additional Security Documents

The parties acknowledge that additional documents may be needed to perfect or record the security interest in the Collateral under applicable law. If required, the Borrower agrees to sign such documents.

9. Representations and Covenants

9.1 Borrower Representations

The Borrower represents that:

• The Borrower has the legal capacity and authority to enter into this Agreement.

• Information provided to the Lender about the Borrower’s identity and contact details is accurate.

• The Borrower intends to repay the Loan according to the terms of this Agreement.

9.2 Borrower Covenants

While any amount remains outstanding under this Agreement, the Borrower agrees to:

• Use the Loan funds for lawful purposes.

• Keep the Lender reasonably informed of any change to the Borrower’s contact details.

• If the Loan is secured, maintain the Collateral in reasonable condition and not dispose of it without the Lender’s consent, except as permitted by law or written agreement.

10. Late Payment and Default

10.1 Late Payment

A payment will be considered late if it is not received within [Number of Days] calendar days after the due date.

Late Fee (if any): [Late Fee Amount or Percentage, or “No late fee”].

10.2 Events of Default

The Borrower will be in default under this Agreement if any of the following occur:

• Failure to pay any amount due under this Agreement within [Number of Days] days after receiving written notice of non-payment from the Lender.

• Material breach of any other term of this Agreement that is not corrected within [Number of Days] days after written notice from the Lender.

• If applicable, significant damage to or loss of Collateral, or sale of Collateral without the Lender’s consent, where such consent is required.

10.3 Remedies on Default

Subject to applicable law and any required notices or cure periods, if a default occurs, the Lender may:

• Declare the entire remaining outstanding principal, plus any accrued interest and permitted fees, immediately due and payable.

• If the Loan is secured, enforce rights in the Collateral in accordance with applicable law and any separate security documents.

• Pursue other legal remedies available under applicable law to recover amounts owed.

11. Governing Law

This Agreement is governed by the laws of [State/Province, Country], without regard to conflict-of-law rules, unless the parties specify a different governing law here: [Alternative Governing Law].

12. Notices

Any notices or communications under this Agreement must be in writing and sent to the addresses or email addresses listed in Section 1, unless a party provides updated contact details in writing.

Permitted methods of notice include:

• Personal delivery

• Mail or courier

• Email, if the recipient regularly uses email and agrees to receive notices electronically

13. Entire Agreement, Amendments, and No Waiver

13.1 Entire Agreement

This Agreement contains the entire understanding between the Lender and the Borrower regarding the Loan described in it and replaces any prior oral or written understandings about this specific loan.

13.2 Amendments

Any amendment or change to this Agreement must be in writing and signed by both the Lender and the Borrower.

13.3 No Waiver

If either party does not enforce a right under this Agreement at a particular time, that does not waive the right to enforce the same or any other right later.

Signatures

By signing below, the Lender and Borrower agree to be bound by the terms of this Personal Loan Contract.

Lender:
Signature: _______________________________
Printed Name: [Lender Full Legal Name]
Title (if signing for a business): [Title]
Date: [Date Signed by Lender]

Borrower:
Signature: _______________________________
Printed Name: [Borrower Full Legal Name]
Title (if signing for a business): [Title]
Date: [Date Signed by Borrower]

Witnesses (If Used)

Witness 1:
Signature: _______________________________
Printed Name: [Witness 1 Full Legal Name]
Address: [Witness 1 Address]
Date: [Date Signed by Witness 1]

Witness 2 (if required):
Signature: _______________________________
Printed Name: [Witness 2 Full Legal Name]
Address: [Witness 2 Address]
Date: [Date Signed by Witness 2]

Notary Acknowledgment (If Required)

State/Province of [State/Province]
County of [County]

On [Notarization Date], before me, [Notary Full Name], a Notary Public, personally appeared [Lender Full Legal Name] and [Borrower Full Legal Name], who proved their identities on the basis of satisfactory evidence and acknowledged that they executed this Personal Loan Contract for the purposes stated in it.

Notary Public Signature: _______________________________
Notary Public Printed Name: [Notary Full Name]
My Commission Expires: [Commission Expiration Date]
Notary Seal: ☐