Finance & Operations
Free Loan Agreement Template (PDF)
A simple loan agreement documents a loan between small parties — the amount, any interest, and the repayment schedule — turning an informal "I'll pay you back" into an enforceable written record.
Download the template
Free, no signup required. Fill in the blanks by hand, or use it below to fill and send for signature.
When to use it
Use this any time real money changes hands as a loan between individuals or small businesses, even among friends or family — a written agreement protects the relationship as much as the money, by making the repayment expectations explicit instead of assumed.
What's typically included
- Loan amount
- Interest terms
- Repayment schedule
- Prepayment terms
- Default terms
- Security (or note that the loan is unsecured)
- Governing law
How to fill it in
- Fill in the principal amount and repayment date as the custom variables the template calls for — these appear more than once in the document, so setting them once keeps every mention consistent.
- Decide upfront whether the loan is interest-free or carries interest, and if it does, check your state's usury law limits before setting a rate — interest rate caps vary significantly by state.
- Spell out what happens on default (how many days late triggers it, and what happens next) — an informal loan that never addresses this is exactly the situation this document is meant to replace.
This template is a general starting point, not legal advice — customize it and have it reviewed for your situation.
Frequently asked questions
Do I need a lawyer for a loan between friends or family?
Not necessarily for a straightforward, modest loan — this template covers the standard terms. For a larger amount, a secured loan, or anything with real complexity, it's worth having a lawyer review the final terms.
Is there a maximum interest rate I can charge?
Yes — usury laws limiting the maximum interest rate on a loan vary by state, and charging above the legal limit can make the interest provision (or in some states, the whole loan) unenforceable. Confirm your state's limit before setting a rate.
Is an electronically signed loan agreement legally binding?
Yes, under the U.S. ESIGN Act and state UETA laws, the same as any other contract.
Ready to use this template?
Every word is editable before you send — this is a starting point, not a final draft.