Loan Agreement - Personal - Hawaii

PERSONAL LOAN AGREEMENT — HAWAII

Before you use this: This is one unsecured private loan of no more than $250,000 to an individual for personal or household use. The lender is an occasional private lender, not a financial institution or a lender offering a regulated lending program. It uses a written fixed simple-interest rate of 0–12% a year and no added lending charges. The lender must not be using this form for a credit card, home business loan, or a different lending program.

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

Principal: $[AMOUNT] (not more than $250,000)
Annual simple interest rate: [____]% (0–12%; enter 0 for an interest-free loan)
Payment address or account: [________________________________]

Loan and funding

Lender agrees to advance the principal above to Borrower on [__/__/____] by [TRANSFER METHOD]. Borrower will use it for [PERSONAL OR HOUSEHOLD PURPOSE]. Lender will give written confirmation of the amount and date actually advanced. Borrower's repayment duty begins when the funds are advanced. This loan is unsecured.

Interest and repayment

Interest accrues only on unpaid principal at the written annual simple rate above, calculated for actual days elapsed by dividing the annual rate by 365 for each day in a common year and by 366 for each day in a leap 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 [__/__/____] (a date on or after the first installment). Payments apply first to accrued interest, then to principal. Borrower may prepay all or part without charge; a partial prepayment does not postpone the next due date unless the parties sign a change.

The rate and payments written here are the entire consideration for the loan. No origination fee, late fee, default interest, collection surcharge, or prepayment penalty is charged. No amount above the principal actually advanced is financed as a fee.

Missed payment and collection

If a payment is more than [____] days late, Lender may give Borrower written notice identifying the missed amount. If Borrower does not pay it within [____] days after receiving that notice, Lender may declare all remaining principal and accrued interest immediately due and pursue lawful collection remedies. Default does not increase the agreed rate or create a new fee.

Notices and changes

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

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

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

Hawaii law reference

HRS § 478-1 defines consumer credit by borrower, purpose, principal/commitment amount, and dwelling-security conditions. This form limits its single unsecured household loan to $250,000 or less to use that consumer-credit route. HRS § 478-4(a) permits a written simple-interest rate up to 12% per year for a consumer credit transaction other than a credit card agreement, subject to its stated scope. This agreement uses that rate route and does not add lending charges.