Financial Template
Free Loan Agreement Template
A loan agreement documents the terms of a loan between two parties, including amount, interest, and repayment schedule.
Template
Copy this markdown, replace the {{variables}}, and send via API.
# Loan Agreement
**Lender:** {{lenderName}}
**Borrower:** {{borrowerName}}
**Date:** {{date}}
## Loan Amount
{{loanAmount}}
## Interest Rate
{{interestRate}}% per annum
## Repayment Schedule
{{repaymentSchedule}}
## Collateral
{{collateral}}
## Default
{{defaultTerms}}
## Prepayment
{{prepaymentTerms}}Send for e-signature
curl -X POST https://signb.ee/api/send \
-H "Authorization: Bearer YOUR_API_KEY" \
-H "Content-Type: application/json" \
-d '{
"content": "YOUR_RENDERED_MARKDOWN",
"senderName": "Your Name",
"senderEmail": "you@company.com",
"recipientName": "Recipient",
"recipientEmail": "recipient@email.com"
}'What happens next
- Signbee converts the markdown to a professional PDF
- Recipient gets an email with a signing link
- Both parties sign with an animated handwriting signature
- Both receive the signed PDF with a SHA-256 certificate
All signatures are legally binding under the ESIGN Act, eIDAS, and ECA.
More details
A loan agreement is a legally binding contract that documents a loan between two parties. Whether it's a personal loan between family members, a business loan between partners, or a formal lending arrangement, a written agreement protects both the lender and the borrower.
Why verbal loans fail: Loans between friends and family without written agreements are the leading cause of relationship damage in financial disputes. Memory fades, terms are recalled differently, and without documentation, enforcement is nearly impossible. A written loan agreement makes the terms clear and prevents misunderstandings.
Types of loan agreement: - Secured: The loan is backed by collateral (property, vehicle, equipment). If the borrower defaults, the lender can seize the collateral. Lower risk = lower interest rates. - Unsecured: No collateral. The lender relies on the borrower's creditworthiness and the agreement itself. Higher risk = higher interest rates. - Demand loan: The lender can demand full repayment at any time with reasonable notice. No fixed repayment schedule. - Instalment loan: Fixed monthly payments over a defined term. The most common structure for personal and business loans.
Essential clauses: 1. Principal amount — The exact amount being lent. State the currency. 2. Interest rate — Annual percentage rate (APR). Check local usury laws — many jurisdictions cap interest rates for personal loans. Zero-interest loans between family members should still be documented. 3. Repayment schedule — Monthly amount, due date, number of payments, and final payment date. Include the total amount to be repaid (principal + interest). 4. Late payment — Penalty for late payments (flat fee or percentage). Grace period before penalties apply (typically 5-15 days). 5. Default — What constitutes default (missed payments, bankruptcy, material misrepresentation). Consequences of default (acceleration of full balance, seizure of collateral, legal action). 6. Prepayment — Can the borrower pay early without penalty? Prepayment penalties are common in commercial loans but unusual in personal loans. 7. Governing law — Which jurisdiction's laws apply to the agreement.
Frequently asked questions
Do I need a written loan agreement for a personal loan?
Yes. Even loans between family members or friends should be documented in writing. A written agreement prevents misunderstandings about repayment terms, protects both parties, and is enforceable in court if disputes arise. It also satisfies tax authorities who may question large transfers without documentation.
What interest rate can I charge on a personal loan?
Check local usury laws — many jurisdictions cap interest rates for personal loans (typically 10-25% APR depending on the state or country). Charging above the legal limit can void the agreement and result in penalties. Zero-interest loans are permissible but should still be documented.
Can loan agreements be signed electronically?
Yes. Loan agreements are valid with electronic signatures under ESIGN (US), eIDAS (EU), and ECA (UK). The timestamped electronic record provides strong evidence of when both parties agreed to the terms.
Related resources
Send this template for signing — free, no credit card.