Contract templates · Loans & Payments
Loans between friends, family or a founder and their company are where informal arrangements most often turn into disputes. A written loan agreement records the terms and helps with tax treatment.
A loan agreement records a loan's amount and purpose, interest, repayment schedule, prepayment rights, any security or guarantee, events of default and the lender's remedies.
When you need one
- Lending money to a business, friend or family member
- Shareholder loans to a company
Key clauses in a Loan Agreement
These are the clauses the template includes, and what each one does for you.
Loan amount and purpose
States how much is lent and what it is for.
Interest
Sets the interest rate and how it is calculated.
Repayment schedule
Fixes instalments or a single repayment date.
Prepayment
Says whether the borrower can repay early and on what terms.
Security or guarantee
Records any collateral or personal guarantee.
Events of default
Lists what counts as default, such as missed payments or insolvency.
Remedies
Explains what the lender can do on default, including demanding full repayment.
Common mistakes to avoid
- Interest-free family loans that tax authorities treat as gifts or deemed interest.
- Interest rates above local usury limits.
- No signature or witness where local law requires formalities for security.
How to use the template
Download the Word file
Buy the Loan Agreement template on My Contract Lawyer and download the editable .docx straight after checkout.
Fill in the brackets
Add names, dates, fees, scope and governing law, and delete optional clauses that do not apply to your deal.
Check it against local law
Rules differ between US states, the UK and EU countries, especially for employment, consumer and property contracts. Have a lawyer review high-value or unusual deals.
Sign and keep a copy
Sign on paper or with any e-signature tool, and store the final version where both sides can find it.
Get the Loan Agreement template
Lawyer-drafted and ready to edit in Word, Google Docs or Pages. One-time payment of $19, no subscription, instant download from My Contract Lawyer.
Frequently asked questions
Loan agreement or promissory note?
A loan agreement suits larger or secured loans with more terms; a promissory note is a simpler promise to repay.
Do family loans need interest?
In the US, loans above certain amounts may need to charge at least the IRS applicable federal rate to avoid tax consequences.
Is a guarantee different from security?
A guarantee is a promise by a third person to pay; security is a right over specific assets.
Related contract templates
Templates are a starting point, not legal advice, and using one does not create a lawyer-client relationship. Contract law differs between countries and states, so check the finished document against local law.