Personal Loan Agreement (With Interest)

This Personal Loan Agreement (With Interest) is designed for simple lending arrangements between individuals - for example between family members, friends, or colleagues - where the parties want a clear written record of the loan and the borrower will pay interest.

What This Personal Loan Agreement (With Interest) Template Does

It documents a loan advanced in a single lump sum on one date. It offers different repayment options, so the loan can be repaid by a single lump sum payment or by regular instalments (monthly or quarterly) until repaid. 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

The agreement provides for interest to be paid and this should be aligned with the repayment schedule. If you do not intend to charge interest, use Personal Loan Agreement 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 terms in a claim to recover the sum due.

When You May Need Something More

If you need more protection for the lender, consider using one of the other loan agreements in this collection.

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 (With Interest) is part of Corporate. Just £38.50 + VAT provides unlimited downloads from Corporate for 1 year.