Loan Agreement - Personal - District of Columbia

PERSONAL LOAN AGREEMENT — DISTRICT OF COLUMBIA

Before you use this: This form is for one unsecured private loan to an individual for personal or household use. This form uses a fixed written interest rate of 0–6% and no added lending fees. Business lending, secured lending, or a higher rate needs separate legal review of licensing and interest limits.

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]. 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 6%) until principal is paid. For each day, interest equals unpaid principal multiplied by the annual rate divided by 365 in an ordinary calendar year, or by 366 in a leap calendar year. Interest does not compound. 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 [__/__/____] (a date on or after the first installment). 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. District of Columbia law governs this agreement. This is the parties' entire agreement for this advance.

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

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

District of Columbia law reference

D.C. Code § 28-3301(a) permits a written interest rate up to 24% for covered instruments, subject to its stated exceptions; § 28-3302(a) supplies 6% when there is no expressed contract. This form selects a written 0–6% rate and no additional charges. Section 26-901(a) imposes a license rule on the business of lending at more than 6% on security; this form is unsecured and limited to private lending. Section 12-301(7) generally sets three years after accrual for a simple contract. Section 28-3302(c) contains a Treasury-linked judgment-interest formula; a resulting judgment controls its own interest.