As individuals, it can be tough to lend or borrow money from each other without a proper agreement in place. This is where a loan agreement template between individuals comes in handy. In this article, we’ll explore the basics of a loan agreement, why it’s important, and provide a sample template for you to use.

What is a Loan Agreement?

A loan agreement is a written contract between a lender and a borrower that outlines the terms and conditions of a loan. This document sets out the rights and obligations of both parties, including the amount of the loan, interest rate, repayment schedule, and any other relevant terms.

Why is a Loan Agreement Important?

A loan agreement is crucial because it protects both the lender and borrower. It ensures that both parties are clear on the terms of the loan and helps avoid any misunderstandings or disputes down the line. Having a loan agreement in place also demonstrates a level of professionalism and commitment, which can help build trust between the two parties.

Loan Agreement Template

To help you get started, we’ve provided a sample loan agreement template between individuals below. It’s important to note that this template should be used as a guideline only, and you should always consult with a legal professional to ensure that your loan agreement meets all legal requirements.

[Insert Date]


This loan agreement (the “Agreement”) is made on [Insert Date] between [Insert Lender’s Full Name and Address] (the “Lender”) and [Insert Borrower’s Full Name and Address] (the “Borrower”).

Loan Amount

The Lender agrees to provide the Borrower with a loan in the amount of [Insert Loan Amount] (the “Loan”).

Interest Rate

The Borrower agrees to pay interest on the Loan at a rate of [Insert Interest Rate] per annum, calculated and compounded [Insert Frequency] (e.g., monthly, quarterly, annually).

Repayment Schedule

The Borrower agrees to repay the Loan in [Insert Number of Payments] payments of [Insert Payment Amount] each, due on the [Insert Due Date] of each month.


[Insert any security provided by the Borrower, if applicable.]


If the Borrower fails to repay any amount under this Agreement when due, the Lender may declare the remaining amount due and payable, together with any interest accrued.

Entire Agreement

This Agreement represents the entire agreement between the parties and supersedes all prior negotiations, representations, and understandings.


This Agreement may not be amended or modified except in writing signed by both parties.

Governing Law

This Agreement shall be governed by and construed in accordance with the laws of [Insert Jurisdiction].


Lender’s Signature: _______________________

Borrower’s Signature: _______________________


In conclusion, a loan agreement template between individuals is a crucial document for protecting both parties when borrowing or lending money. Use this sample template as a starting point, but always consult with a legal professional to ensure that your loan agreement meets all legal requirements. With a loan agreement in place, both parties can have peace of mind and focus on the borrowing and lending process.