Long Form Loan Agreement - Unsecured

This Long Form Loan Agreement - Unsecured is designed to document an unsecured term loan in a detailed, lender-and-borrower friendly way. It can be used whether the lender and/or borrower is a business or an individual, and it includes more comprehensive protections and process mechanics than the short form.

What This Long Form Loan Agreement (Unsecured) Does

It covers the key legal and commercial terms for lending a fixed sum over a specified period, including purpose (where relevant), drawdown mechanics, interest, repayment options, and what happens if something goes wrong. It is intended for higher-value or higher-risk lending arrangements, or where the parties want clearer obligations and remedies documented from the outset.

Key Features

This agreement includes detailed provisions on representations and warranties, covenants and undertakings, and events of default, so the parties have a clear set of information rights, obligations, and enforcement triggers. It also includes a drawdown notice (Schedule 2) to provide a clear mechanism for requesting when the loan is to be advanced and which account the funds should be paid into.

Repayment Options

The template supports different repayment structures, including repayment by a single amount at the end of the term (a bullet repayment) or repayment by instalments (an amortising loan). This gives flexibility when the parties are agreeing how the loan will be repaid.

Short Form Alternative And Security

If the loan relationship does not require this level of detail or protection, you may prefer the Short Form Loan Agreement – Unsecured.

If you wish to add security, the loan agreement is intended to be used alongside the relevant documents in the Security Documents and/or Loan Guarantees and Indemnities collections, as appropriate.

What It Covers

The agreement includes provisions dealing with the facility and purpose, drawdown and conditions precedent, interest and repayments (including a repayment schedule at Schedule 1), re-borrowing, payment mechanics and VAT, security (optional), representations and warranties, covenants, events of default, assignment and transfer, set-off, and governing law and jurisdiction. It also includes a drawdown notice (Schedule 2) and an optional schedule for security documents (Schedule 3).

Important Note On Consumer Lending

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; trading without a licence is a criminal offence and can result in a fine and/or imprisonment.

Long Form Loan Agreement - Unsecured is part of Corporate. Just £38.50 + VAT provides unlimited downloads from Corporate for 1 year.