Short Form Loan Agreement – Unsecured
This Loan Agreement clearly and carefully regulates the making of a term loan. It is suitable for use whether the lender or borrower is a business or an individual, however due to the brevity of this document it is especially recommended for regulating lending relationships between individuals, where more extensive provisions regarding representations and undertakings are not necessary.
The Loan Agreement - Short Form version follows the structure of the Long Form Loan Agreement and has been recently updated for best practice and clarity by the addition of a definition of “Business Days” and a new clause 9, Payments. This new clause clarifies how payments under the loan, for example interest payments to the lender, will be made.
The Agreement covers all necessary legal and practical commercial considerations relevant to the lending of small to medium sized amounts for specified periods of time.
However, should the lending relationship you seek to achieve require more detail or protection, you may wish to download and use the alternative 'Loan Agreement – Long Form' available by following the link below.
The Short Form Loan Agreement contains the following clauses:
1. Definitions and Interpretation
2. The Facility
5. No Security
13. Governing Law and Jurisdiction
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 by the OFT. This agreement is not intended for consumer purposes; trading without a licence is a criminal offence and can result in a fine and/or imprisonment.
This Loan Agreement template is in open format. Either enter the requisite details in the highlighted fields or adjust the wording to suit your purposes.