Loan Agreement Term Sheet

A loan term sheet is a non-binding letter of intent (sometimes called heads of terms) that helps a lender and borrower agree the key commercial and legal terms of a proposed loan before drafting a full loan agreement. This Loan Agreement Term Sheet relates to and is based on our Long Form Loan Agreement - Unsecured and Short Form Loan Agreement – Unsecured.

What This Loan Agreement Term Sheet Does

It records the main deal terms upfront - for example the loan amount, whether interest applies, repayment approach, any proposed security, and the core protections and default position - so both parties are aligned before committing to binding documentation. Once agreed, the term sheet can be used as the basis for preparing the binding loan agreement in long form or short form.

When To Use This Loan Agreement Term Sheet

Use this template where you want a clear written summary of the deal points before instructing the final drafting of the loan agreement, particularly where the parties want to minimise misunderstandings on repayment terms, interest, and any security expectations.

Important Note On Consumer Lending

NOTE: This document 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.

Related Templates

This term sheet is designed to be used alongside:
Short Form Loan Agreement – Unsecured
Long Form Loan Agreement - Unsecured

Loan Agreement Term Sheet is part of Corporate. Just £38.50 + VAT provides unlimited downloads from Corporate for 1 year.