PERSONAL LOAN AGREEMENT (BETWEEN INDIVIDUALS)
THIS AGREEMENT is made on [Date],
BETWEEN:
[Lender Name], of [Lender Address] (“Lender”)
AND
[Borrower Name], of [Borrower Address] (“Borrower”).
WHEREAS
- The Lender agrees to loan a certain sum to the Borrower, and the Borrower agrees to repay this loan under the terms set out below.
1. LOAN DETAILS
1.1 The Lender agrees to loan the Borrower the principal sum of [Loan Amount] ([Currency]), (the “Loan”).
1.2 The Loan will be provided to the Borrower on [Disbursement Date], by [method of payment, e.g., bank transfer, cheque, cash].
2. INTEREST
2.1 The Loan shall bear interest at a rate of [Interest Rate]% per annum, calculated [simple/compound] interest, [specify frequency, e.g., annually, monthly], unless otherwise agreed in writing.
2.2 If no interest is to be charged, write “0%” as the Interest Rate.
3. REPAYMENT TERMS
3.1 The Borrower shall repay the Loan as follows:
- Repayment Start Date: [Repayment Start Date]
- Repayment Schedule: [e.g., monthly, quarterly, lump sum]
- Amount per Payment: [Installment Amount]
- Final Due Date: [Final Payment Due Date]
3.2 Early repayment of all or part of the Loan is [permitted/not permitted] without penalty.
3.3 All payments shall be made to the Lender at [Lender Payment Address/Bank Details], or as otherwise directed in writing by the Lender.
4. LATE PAYMENT
4.1 If any payment is not made within [Number] days of its due date, the Borrower shall pay a late fee of [Late Fee Amount or Percentage], in addition to any interest accrued.
5. USE OF LOAN
5.1 The Borrower agrees to use the Loan for the following purpose: [Purpose of Loan].
5.2 The Borrower shall not use the Loan for any unlawful purpose.
6. ACCELERATION
6.1 The Lender may demand immediate repayment of the outstanding balance if:
- The Borrower fails to make any payment due under this Agreement within [Number] days after written notice of default;
- The Borrower becomes insolvent or bankrupt;
- There is any material misrepresentation by the Borrower.
7. SECURITY (IF APPLICABLE)
7.1 [Optional: The Loan is secured by [describe collateral, e.g., car, property, etc.], as described in [Attachment/Section].]
7.2 [If unsecured, state: This Loan is unsecured.]
8. AMENDMENTS
8.1 Any amendment to this Agreement must be in writing and signed by both parties.
9. NOTICES
9.1 Any notice required under this Agreement shall be in writing and delivered to the addresses stated above (or such other address as notified in writing).
10. GOVERNING LAW
10.1 This Agreement shall be governed by and construed in accordance with the laws of [Governing Law State/Country].
11. ENTIRE AGREEMENT
11.1 This Agreement constitutes the entire agreement between the parties and supersedes all prior agreements or understandings, whether written or oral, relating to the subject matter.
12. SEVERABILITY
12.1 If any provision of this Agreement is found to be invalid or unenforceable, the remainder of the Agreement shall continue in full force and effect.
13. ASSIGNMENT
13.1 Neither party may assign or transfer their rights or obligations under this Agreement without the prior written consent of the other party.
14. SIGNATURES
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.
Lender:
Signature: ___________________________
Name: [Lender Name]
Date: _______________________________
Borrower:
Signature: ___________________________
Name: [Borrower Name]
Date: _______________________________
Disclaimer
This document is a template and may not be suitable for all situations. The parties should consult with legal counsel before signing this agreement.
