Loan Agreement - Personal - New York
PERSONAL LOAN AGREEMENT — NEW YORK
Before you use this: This form is for one unsecured loan by a private lender to an individual for personal, family, or household use, with principal below $250,000. A lender making loans as a business, a secured or real estate loan, or a transaction with fees needs a separate review of licensing, disclosures, and interest law. Complete the payment schedule and confirm the chosen rate before signing.
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, FAMILY, 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; for this form, do not enter more than 16%), calculated for each day by dividing the annual rate by 365 (366 for a 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 [__/__/____] (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. New York law governs this agreement. This is the parties' entire agreement for this advance.
Lender signature: ______________________________ Date: [__/__/____]
Printed name: [________________________________]
Borrower signature: ______________________________ Date: [__/__/____]
Printed name: [________________________________]
New York law reference
For this covered private loan, N.Y. General Obligations Law § 5-501 and Banking Law § 14-a supply a general 16% civil ceiling; § 5-501 counts direct and indirect consideration for making the loan. Penal Law § 190.40 separately addresses knowing charges above 25% absent legal authorization. Under CPLR §§ 105(f) and 214-i, an action against the borrower arising from this consumer credit transaction generally must be commenced within three years, subject to the section's stated exceptions. For an action arising out of consumer debt against a natural person, CPLR § 5004 provides 2% annual interest on judgments and accrued claims within subsection (a)'s effective-date rules. The agreed simple-interest term above governs ordinary scheduled loan payments; interest awarded in a court action is subject to the applicable contract and statutory rules.
About this template
- Last updated
- October 1, 2026
- Citations checked
- October 2, 2026
- Jurisdiction
- New York
- Category
- Financial & Banking
Legal authority
- N.Y. General Obligations Law § 5-501
- N.Y. Banking Law § 14-a
- N.Y. Penal Law § 190.40
- N.Y. CPLR § 105(f)
- N.Y. CPLR § 214-i
- N.Y. CPLR § 5004
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
A reviewer verified this template's legal citations against the official source on October 2, 2026.
N.Y. General Obligations Law § 5-501(1)-(2) (checked October 2, 2026): "No person or corporation shall, directly or indirectly, charge, take or receive any money, goods or things in action as interest on the loan or forbearance of any money, goods or things in action at a rate exceeding the rate above prescribed."
N.Y. Banking Law § 14-a(1) (checked October 2, 2026): "The maximum rate of interest provided for in section 5-501 of the general obligations law shall be sixteen per centum per annum."
N.Y. Penal Law § 190.40 (checked October 2, 2026): "A person is guilty of criminal usury in the second degree when, not being authorized or permitted by law to do so, he knowingly charges, takes or receives any money or other property as interest on the loan or forebearance of any money or other property, at a rate exceeding twenty-five per centum per annum or the equivalent rate for a longer or shorter period."
N.Y. CPLR § 105(f) (checked October 2, 2026): "The term "consumer credit transaction" means a transaction wherein credit is extended to an individual and the money, property, or service which is the subject of the transaction is primarily for personal, family or household purposes."
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