Personal Loan Agreement

This Personal Loan Agreement is designed for very simple lending arrangements between individuals - for example between family members, friends, or colleagues - where the parties want a clear written record of the loan.

What This Personal Loan Agreement Template Does

It documents a loan that is advanced in a single lump sum on one date, with repayment due on a fixed date. It also includes a mechanism allowing the lender to demand early repayment by giving written notice, with repayment due at the end of the notice period (for example, one month).

Interest

This agreement does not provide for interest. If you want the loan to carry interest, use Personal Loan Agreement (With Interest) instead.

Why A Written Agreement Matters

Having a clear written agreement helps avoid disputes about whether a debt exists and what was agreed. If the borrower fails to repay, the agreement can be used as evidence of the debt and the agreed repayment terms, including in a claim to recover the sum due.

Execution

The template includes an electronic signature clause to reflect how documents are often executed in practice.

When You May Need Something More

If you need more lender protection, consider using one of the other loan agreements in this collection (including the short form). If you want to take security for the loan, refer to the secured loan agreement templates and related security documents.

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. You can be imprisoned and fined if you carry out regulated activities without being authorised.

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