Arkansas Personal Loan Agreement

ARKANSAS PERSONAL LOAN AGREEMENT

Before you use this: This Agreement is for one unsecured personal loan between individuals outside a lending business. Enter an annual interest rate from 0% to 10%; write 0 for an interest-free loan. It provides no origination, late, default-interest, or prepayment charge.

This Personal Loan Agreement is made on [__/__/____] between [LENDER FULL LEGAL NAME], at [LENDER MAILING ADDRESS] ("Lender"), and [BORROWER FULL LEGAL NAME], at [BORROWER MAILING ADDRESS] ("Borrower").

1. Loan and advance

Lender will advance $[PRINCIPAL] to Borrower on [__/__/____] by [METHOD]. Borrower will give Lender a receipt or other proof of the actual amount and date received. Borrower's repayment obligation is for the amount actually advanced, plus the interest agreed in Section 2. No collateral secures this loan.

2. Interest and charges

The annual simple interest rate is [RATE FROM 0 TO 10]%. Interest accrues only on unpaid principal from the date the advance is received. For each day, interest equals unpaid principal multiplied by the annual rate divided by 365, or by 366 for a day in a leap year. Interest does not compound. The parties agree to no origination fee, late fee, default interest, or other finance charge.

3. Repayment

Borrower will pay $[AMOUNT] first on [__/__/____] (choose a date after the advance from the 1st through the 28th), then on that same day of each following month until the final due date or earlier full payment. Each installment is limited to the unpaid principal and accrued interest then due. Any unpaid principal and accrued interest are due in full on [__/__/____] (on or after the first scheduled payment date). Payments go first to accrued interest and then to principal. Borrower will pay by [METHOD] to [ACCOUNT / ADDRESS]. Lender will give a written receipt for cash payments and, on request, a current balance statement.

Borrower may pay early, in whole or in part, without charge. A partial early payment reduces unpaid principal but does not postpone the next scheduled date unless both parties sign a different schedule.

4. Missed payment

If a payment is missed, Lender may send Borrower a written notice stating the missed amount and the date due. Borrower has [__] days after receipt to pay that amount. If it remains unpaid after that agreed cure period, Lender may declare the unpaid principal and accrued interest immediately due and pursue lawful collection. No additional charge or higher interest rate arises from a missed payment.

5. Records and notices

Each party will keep a copy of this Agreement, the advance record, and payment receipts. A routine notice under this Agreement will be delivered personally or by [TRACKED MAIL METHOD] to the addresses above, or to a replacement address supplied in writing. A notice used for a legal remedy must also follow applicable law.

6. General terms

Arkansas law governs. A change to the principal, rate, dates, or other terms must be written and signed by both parties. Controlling law prevails over a conflicting term. The parties choose the 0–10% interest rate entered in Section 2 as the only loan finance charge. Ark. Const. amend. 89, § 3 sets a 17% ceiling for loans outside its government and federally insured depository categories; this Agreement chooses a lower contractual range and makes no statement that 10% is the statutory maximum.

Signatures

Lender: [SIGNATURE] Printed name: [NAME] Date: [__/__/____]

Borrower: [SIGNATURE] Printed name: [NAME] Date: [__/__/____]

Advance receipt (complete when funds are delivered): Borrower received $[AMOUNT] from Lender on [__/__/____] by [METHOD]. Borrower: [SIGNATURE]