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Short Form Loan Agreement Template

Short Form Loan Agreement – Unsecured


This loan agreement clearly and carefully regulates the making of a term loan. It is suitable for use whether the lender or borrower is a business or an individual, however due to the brevity of this document it is especially recommended for regulating lending relationships between individuals, where more extensive provisions regarding representations and undertakings are not necessary.

The short form version follows the structure of the Long Form Loan Agreement and covers all the necessary legal and practical commercial considerations relevant to the lending of small to medium sized amounts for specified periods of time. This template has been recently updated to provide customers with different repayment options. The option of repayment either by a single amount (bullet repayment) or repayment by instalments (amortising loan) has been included to give flexibility to the parties when considering how repayments should be structured.

Should the lending relationship you seek to achieve require more detail or protection, you may wish to download and use the alternative Long Form Loan Agreement – Unsecured.

The Short Form Loan Agreement – Unsecured contains the following clauses:

  1. Definitions and Interpretation
  2. The Facility
  3. Purpose
  4. Drawdown
  5. No Security
  6. Repayment
  7. Interest
  8. Default
  9. Payments
  10. Set-off
  11. Assignment
  12. Communications
  13. Governing Law and Jurisdiction

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.

Optional phrases/clauses are enclosed in square brackets. These should be read carefully and selected so that they are compatible with one another. Unused options should be removed from the document.

This document is in open format. Either enter the requisite details in the highlighted fields or adjust the wording to suit your purposes.

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