Loan Agreement - Personal
PERSONAL LOAN AGREEMENT
Before you use this: Complete the loan terms and check the law that governs the lender, borrower, and transaction, including any rate limit, licensing, disclosure, fee, and notice rules. If a required disclosure or separate document applies, provide it before funding. This form covers an unsecured personal loan between the named parties.
This Personal Loan Agreement (the Agreement) is made on [__/__/____] between:
| Party | Name and mailing address |
|---|---|
| Lender | [LENDER FULL LEGAL NAME], [LENDER ADDRESS] |
| Borrower | [BORROWER FULL LEGAL NAME], [BORROWER ADDRESS] |
The lender and borrower agree as follows.
1. Loan and funding
The lender will lend the borrower $[PRINCIPAL AMOUNT] for [PERSONAL, FAMILY, OR HOUSEHOLD PURPOSE]. The lender will deliver the loan proceeds by [PAYMENT METHOD] to [PAYMENT DESTINATION] on [__/__/____]. The borrower will repay the amount actually advanced, plus the interest and any charges expressly permitted by this Agreement and applicable law. If the lender does not advance the funds by [__/__/____], either party may cancel this Agreement by written notice before an advance is made.
This is an unsecured loan. This Agreement does not grant the lender a lien on any property or bind any guarantor.
2. Interest and payment terms
Interest accrues on the unpaid principal at a fixed rate of [ANNUAL INTEREST RATE]% per year, using [ACTUAL DAYS / 365-DAY YEAR or OTHER AGREED METHOD]. Interest begins on the date funds are advanced and stops accruing on principal when that principal is paid. The parties will use a rate permitted for this transaction by the law that governs it. An unlawful rate or charge remains subject to the remedies that law provides; this Agreement does not declare an unlawful amount automatically valid.
The borrower will pay $[PAYMENT AMOUNT] on the [DAY] day of each [MONTH / OTHER PERIOD], beginning [__/__/____], for [NUMBER] scheduled payments. The final payment is due [__/__/____] and includes any remaining principal and accrued interest. The parties will attach a payment schedule as Exhibit A if the amount or timing varies. The payment amount and final date must be consistent with the principal, rate, accrual method, and payment schedule completed above.
Payments will be made by [PAYMENT METHOD] to [PAYMENT ADDRESS OR ACCOUNT DETAILS PROVIDED SEPARATELY]. The lender will provide written notice of a changed payment destination. Unless applicable law requires another order, the lender will apply a payment first to accrued interest then to principal, and only then to an agreed and lawful charge. A partial payment reduces the amounts owed but does not by itself change future due dates.
The borrower may prepay principal, in whole or in part, at any time without a prepayment charge. A partial prepayment reduces interest that accrues afterward on the principal paid; it does not change a scheduled due date unless the parties agree in writing.
3. Charges
Late charge: [NONE / $[AMOUNT] if a scheduled payment remains unpaid [NUMBER] days after its due date]. The lender may collect a late charge only to the extent permitted by applicable law and may not assess more than one late charge on the same missed installment. No other origination, servicing, returned payment, or default charge applies unless stated in a separately signed schedule attached to this Agreement and permitted by applicable law.
4. Default and collection
A payment default occurs when an amount due remains unpaid [NUMBER] days after its due date. The lender will give the borrower written notice specifying the unpaid amount and a payment address. The borrower will have [NUMBER] days after the notice is received to cure, or any longer period required by applicable law. If the borrower does not cure, the lender may demand payment of the remaining principal and accrued interest, subject to any required notice, cure right, stay, or other restriction under applicable law. The lender may seek a judgment or other remedy available under applicable law. Nothing in this Agreement authorizes self-help seizure or collection conduct prohibited by law.
Each party bears its own collection expenses and attorney fees unless a court awards them under applicable law or a separately negotiated, lawful written term applies: [OPTIONAL FEE TERM OR "NONE"].
5. Records and notices
The lender will keep a record of advances, payments, charges, and the outstanding balance and will provide a written payoff amount on the borrower's reasonable request. The borrower may request correction of a payment record in writing; the parties will exchange records reasonably needed to resolve it. A change to this Agreement, including a payment deferral or forgiveness, must be in writing and signed by both parties.
Notices under this Agreement must be delivered personally, by tracked mail, or by another method the recipient agrees to in writing, to the mailing addresses above or a replacement address given in writing. A notice is effective when actually received, unless applicable law requires another method or time. A required consumer disclosure may be delivered electronically only if applicable electronic-disclosure rules have been satisfied; signing this Agreement alone is not consent to receive every required disclosure electronically.
6. Governing law and disputes
The law of [GOVERNING STATE] governs this Agreement, subject to any mandatory law that applies regardless of that choice. A dispute may be brought in a court that has jurisdiction and proper venue under applicable law. This Agreement does not require arbitration or waive a jury trial.
If part of this Agreement is unenforceable, the remainder will continue to apply to the extent the parties' essential bargain can lawfully be carried out. This Agreement, together with any signed exhibit, is the parties' complete agreement about this loan. Neither party may transfer its obligations under this Agreement without the other party's written consent. Any transfer of the lender's right to receive payments remains subject to applicable law and the borrower's defenses.
The parties may sign counterparts. They may agree to use electronic signatures where permitted by applicable law; neither party is required by this Agreement to accept an electronic signature or record.
7. Signatures
By signing, the lender agrees to advance the loan on the terms above, and the borrower agrees to repay amounts advanced on those terms.
| Lender | Borrower |
|---|---|
| Signature: [________________________________] | Signature: [________________________________] |
| Printed name: [________________________________] | Printed name: [________________________________] |
| Date: [__/__/____] | Date: [__/__/____] |
Exhibit A — Payment schedule (complete if needed)
| Payment number | Due date | Amount due | Principal portion | Interest portion |
|---|---|---|---|---|
| [____] | [__/__/____] | $[____] | $[____] | $[____] |
| [____] | [__/__/____] | $[____] | $[____] | $[____] |
Additional rows or an attached schedule signed by both parties: [________________________________]
About this template
- Last updated
- September 26, 2026
- Jurisdiction
- All states
- Category
- Financial & Banking
Legal authority
- 15 U.S.C. § 1602(g), (i) (Truth in Lending Act coverage definitions, when applicable)
- 15 U.S.C. § 7001(a), (b), (c) (electronic records and signatures, when applicable)
Financial and banking documents govern loans, security interests, account agreements, and commercial transactions between lenders, borrowers, and financial institutions. Promissory notes, guaranties, security agreements, and UCC filings have precise legal requirements, and mistakes can leave a lender unsecured or a borrower on the hook for more than they agreed to. Well-drafted finance paperwork protects both sides and keeps the deal enforceable if something goes wrong later.
Not legal advice
This template is provided for informational purposes. We recommend having an attorney review any legal document before signing, especially for high-value or complex matters.
Checked against the law it cites
The statutes this template relies on are listed under Legal authority.
15 U.S.C. § 1602(g) (checked September 26, 2026): "The term "creditor" refers only to a person who both (1) regularly extends, whether in connection with loans, sales of property or services, or otherwise, consumer credit which is payable by agreement in more than four installments or for which the payment of a finance charge is or may be required, and (2) is the person to whom the debt arising from the consumer credit transaction is initially payable on the face of the evidence of indebtedness or, if there is no such evidence of indebtedness, by agreement."
15 U.S.C. § 1602(i) (checked September 26, 2026): "The adjective "consumer", used with reference to a credit transaction, characterizes the transaction as one in which the party to whom credit is offered or extended is a natural person, and the money, property, or services which are the subject of the transaction are primarily for personal, family, or household purposes."
15 U.S.C. § 7001(a)(2) (checked September 26, 2026): "a contract relating to such transaction may not be denied legal effect, validity, or enforceability solely because an electronic signature or electronic record was used in its formation."
15 U.S.C. § 7001(b)(2) (checked September 26, 2026): "require any person to agree to use or accept electronic records or electronic signatures, other than a governmental agency with respect to a record other than a contract to which it is a party."
Draft your Loan Agreement - Personal in the editor
Answer a few questions, let the AI editor draft each section from your answers, review it, and download Word and PDF. $99 one time, or $249 per month for every document and every Ezel app.