Loan Agreement - Personal - Connecticut

PERSONAL LOAN AGREEMENT — CONNECTICUT

Before you use this: This form is for one unsecured private loan to an individual for personal or household use, excluding hospital-service debt. The fixed rate must be 0–8% and no added lending fee or charge may be inserted. A licensed lender, secured loan, higher rate, or other charge needs separate Connecticut and federal consumer-credit review.

This agreement is made on [__/__/____] between [LENDER FULL LEGAL NAME], of [LENDER ADDRESS] ("Lender"), and [BORROWER FULL LEGAL NAME], of [BORROWER ADDRESS] ("Borrower").

Loan and funding

Lender agrees to advance $[AMOUNT] to Borrower on [__/__/____] by [TRANSFER METHOD]. Borrower will use the funds for [PERSONAL OR HOUSEHOLD PURPOSE, OTHER THAN HOSPITAL-SERVICE DEBT]. This loan is unsecured. Lender will give Borrower written confirmation of the amount and date actually advanced. Borrower's repayment obligation begins when funds are advanced.

Interest and repayment

Interest accrues only on unpaid principal at [____]% annual simple interest (enter 0 for an interest-free loan; this form uses no rate above 8%), calculated for each day at the annual rate on unpaid principal divided by 365 in an ordinary calendar year or by 366 in a leap calendar year, without compounding. 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. All unpaid principal and accrued interest are due on [__/__/____] (on or after the first scheduled payment date). Payments apply first to accrued interest, then to principal. Borrower may prepay all or part at any time without a charge; a partial prepayment does not postpone the next scheduled due date unless the parties sign a change.

Neither party may add an origination fee, late fee, default interest, or prepayment penalty under this agreement. The rate and payments written here are the entire consideration for making the loan.

Missed payment and collection

If a payment is more than [____] days late, Lender may give Borrower written notice of the missed amount. If Borrower does not pay it within [____] days after receiving the notice, Lender may declare the unpaid principal and accrued interest immediately due. Lender may pursue payment through lawful remedies, subject to applicable limitation periods and collection law. A default does not increase the agreed interest rate.

Notices and changes

Notices may be delivered personally or mailed to the addresses above, or to a replacement address given in writing. Changes to this agreement must be written and signed by both parties. Connecticut law governs this agreement. This is the parties' entire agreement for this advance.

Lender signature: ______________________________ Date: [__/__/____]
Printed name: [________________________________]

Borrower signature: ______________________________ Date: [__/__/____]
Printed name: [________________________________]

Connecticut law reference

Conn. Gen. Stat. § 37-1(a) supplies an 8% rate when no other rate is agreed; § 37-4 generally prohibits charging more than 12% on a covered loan. This form chooses a written fixed rate of 0–8% and no added charges. The 2026 supplement to § 36a-555(17) defines a small loan by both an amount of $50,000 or less and APR greater than 12%; § 36a-556(a) requires a license to make such a small loan unless exempt. Section 52-576(a) generally gives six years after accrual to sue on a written contract, subject to its exception. Under § 37-3a(a), a court may allow up to 10% as damages for detaining money after it becomes payable; that award is not an automatic contractual default charge.