Personal Loan Agreement (With Interest)

This Personal Loan Agreement (With Interest) is to be used in the simplest of situations, for example where one family member loans money to another, or where money is loaned between friends or colleagues.

The Agreement provides for the money to be paid to the borrower in one lump sum on a single date. There are different repayment options and repayment may be by a single lump sum payment or by monthly or quarterly amounts until the loan is repaid. However, there is also a provision enabling the lender to demand repayment of the loan at any time, subject to service of a written notice. The borrower will be obliged to pay the loan back at the end of the period specified in the notice (for example, this could be fixed at one month, to allow the borrower sufficient time to find the funds).

The Agreement provides for interest to be paid and this should match the repayments schedule. If you do not intend to charge interest on the loan, please refer to our Personal Loan Agreement.

This Agreement provides a clear and unambiguous contract between the lender and the borrower, thus avoiding any dispute over the existence of the debt. If the borrower fails to repay, it is open to the lender to bring a claim in the small claims track of the court system to recover the debt, using this Agreement as the basis of the claim.

If you require an agreement with more protection for the lender, please refer to other documents in this folder.

NOTE: This agreement is not intended to be regulated by the Consumer Credit Act 1974 which requires that businesses that lend money to consumers must be licensed to do so or those that engage in regulated activity must be regulated by the Financial Conduct Authority (FCA). This agreement is not intended for consumer purposes. You can be imprisoned and fined if you carry out regulated activities without being authorised. 

Optional phrases/clauses are enclosed in square brackets. These should be read carefully and selected so that they are compatible with one another. Unused options should be removed from the document.

This document is in open format. Either enter the requisite details in the highlighted fields or adjust the wording to suit your purposes.

Personal Loan Agreement (With Interest) is part of Corporate Documents. Just £35.00 + VAT provides unlimited downloads from Corporate Documents for 1 year.