Loan Facility Letter

This Loan Facility Letter is a short form alternative to a traditional loan agreement. It is drafted as a letter from the lender to the borrower, setting out the terms on which the lender will make a loan available, with a form of acceptance for the borrower to sign and return.

What This Loan Facility Letter Template Does

It provides a straightforward way to document an unsecured loan using a letter format, while still covering the core clauses you would typically expect to see in a short form loan agreement. It is based on our basic loan agreement template and is suitable where the parties want a simpler document but still need clear written terms.

What It Covers

The letter sets out the principal terms of the loan, including the facility details, purpose, interest and default interest, repayment provisions, representations and warranties, events of default, miscellaneous provisions, and governing law and jurisdiction. It also includes a form of acceptance for the borrower to sign and return so there is a clear record of agreement.

Who This Is For

It can be used whether the lender and/or borrower is a business or an individual.

When A Longer Agreement May Be Better

If the lending relationship you want requires more detail or protection, consider using the Long Form Loan Agreement - Unsecured instead.

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 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.

Loan Facility Letter is part of Corporate. Just £38.50 + VAT provides unlimited downloads from Corporate for 1 year.