Here's a free U.S. personal loan agreement you can copy and edit. It works best for a simple unsecured loan between one lender and one borrower, with a single advance and a clear repayment plan: amount, funding date, interest, due dates, default process, and signatures.

Mortgages, vehicle liens, federal student-loan notes, payroll deductions, revolving credit, repeated commercial lending, and cross-border deals sit outside this form. Those transactions need other documents. Interest, fees, notices, collection steps, and extra paperwork can also change under state law.

Treat what follows as general consumer information, not legal or tax advice.

When this form fits

Use it for a loan between two people, including family, where the money goes out once. Repayment should be a stated number of installments or one due date, with no house, car, business asset, or other collateral attached. It isn't meant for someone who's in the lending business.

A signature helps with records. It still won't force a broke borrower to pay, and it won't save a term the law forbids.

Before the money moves:

1. Confirm both parties' full legal names and contact information.
2. Write the loan amount, funding date, interest rate, fees, and payment schedule.
3. Decide what happens after a missed payment and how long the borrower has to cure it.
4. Attach a repayment schedule if the loan carries interest.
5. Check the applicable state rules before charging interest or using collateral.
6. Have both parties sign and keep identical copies.

Free personal loan agreement template

Copy the form into a document editor. Strip the instructions, fill every blank, and delete leftover brackets or unused options. Don't sign a version that still offers alternatives in the text.

PERSONAL LOAN AGREEMENT

Date: [Month Day, Year]

Lender: [Full legal name]
Lender address: [Street, city, state, ZIP]
Lender email or phone: [Contact information]

Borrower: [Full legal name]
Borrower address: [Street, city, state, ZIP]
Borrower email or phone: [Contact information]

1. LOAN AND FUNDING

The Lender agrees to lend the Borrower $[amount]. The funds will be delivered on or about [date] by [bank transfer, check, or other method]. The Borrower will confirm receipt of the funds in writing.

2. PROMISE TO REPAY

The Borrower promises to repay the amount owed under this agreement, together with any agreed interest and permitted charges, according to the payment terms below.

3. INTEREST

The annual interest rate is [0% or fixed rate of __%]. Interest will be calculated on unpaid principal using [state the calculation method].

No other interest, fee, or charge applies unless it is listed in this agreement and permitted by applicable law.

4. PAYMENT TERMS

The Borrower will make [number] payments of $[amount] each. The first payment is due on [date]. Later payments are due on the [day] of each [month or other period]. The final payment will be adjusted as needed for rounding or the exact remaining balance.

Payments must be sent by [payment method] to [payment instructions]. Each payment will be applied in this order: [fees, accrued interest, principal, or another stated order].

An attached repayment schedule is part of this agreement.

5. PREPAYMENT

The Borrower may prepay [all or part] of the balance [without a prepayment charge or under these terms: ________].

A prepayment will be applied to [accrued interest, principal, or another stated amount] unless applicable law requires a different treatment.

6. LATE PAYMENTS AND DEFAULT

A payment is late if it is not received by [due date or grace period]. If permitted by applicable law, a late charge of [amount or percentage] may be charged after [number] days.

The Borrower is in default if the Borrower fails to make a required payment and does not cure the failure within [number] days after receiving written notice.

After a default, the Lender may pursue the amounts then legally due and may [accelerate the remaining balance: yes or no]. Any collection costs or attorney fees will be limited to amounts allowed by applicable law or a valid court order.

7. SECURITY

This loan is [unsecured or secured].

If secured, the collateral is described as follows:
[Detailed description, including identifying numbers, location, and ownership information]

The parties will sign any separate security, title, mortgage, or filing documents required to create and enforce the security interest.

8. GUARANTOR OR CO-SIGNER

[No guarantor or co-signer is included.]

[Name of guarantor or co-signer] signs the attached guaranty or agreement. The document must state the person's obligations, any limits, notice rights, and the circumstances under which responsibility ends.

9. PURPOSE OF THE LOAN

The funds may be used for [optional purpose]. This statement [does or does not] create a restriction on how the Borrower may use the money.

10. NOTICES

Notices under this agreement must be in writing and delivered by [mail, personal delivery, email with confirmation, or another method] to the addresses listed above. A party must notify the other party in writing of any address change.

11. CHANGES AND WAIVERS

Any change to this agreement must be in a written document signed by both parties. A delay or failure to enforce one term does not waive the right to enforce that term later.

12. GOVERNING LAW

This agreement will be interpreted under the law of [state], except to the extent another law or mandatory consumer protection applies.

13. ENTIRE AGREEMENT

This document and its attachments contain the parties' agreement about this loan. Any earlier oral or written understanding is replaced by this agreement.

LENDER

Signature: ______________________________
Printed name: ___________________________
Date: ___________________________________

BORROWER

Signature: ______________________________
Printed name: ___________________________
Date: ___________________________________

OPTIONAL WITNESS OR NOTARY

Witness or notary: _______________________
Date: ___________________________________

Security, a guaranty, and payroll deduction aren't interchangeable add-ons. Collateral usually needs extra documents and, in some cases, a filing or title notation. A guarantor may owe different duties than a co-signer. Taking repayment from wages can require a separate authorization and a wage-law review.

Loan contract examples and which terms change

The table is a map of common variations, not a stack of 18 ready-to-file documents.

A promissory note is usually narrower than a full loan agreement. The note is the promise to pay. The agreement can also cover collateral, reporting, use of funds, notices, guarantors, and default steps. If you use both, match the amount, rate, dates, and remedies so they don't conflict.

Clauses that prevent common disputes

Identify the parties and the money trail

Use legal names, not nicknames. Add an address or other reliable notice details, and say whether someone is signing personally or for a business.

State when and how the money will be delivered. Keep the transfer confirmation, check image, or receipt with the signed contract. If you sign after the money already moved, don't backdate the paper. Put the real funding date in the agreement and have the borrower acknowledge receipt.

State interest and fees in plain language

Write an annual interest rate and say how it's calculated. A phrase such as "0.5% monthly" is easy to misread once annualization, compounding, and the actual payment enter the picture.

That rate also isn't automatically an annual percentage rate. Some covered consumer-credit transactions require cost-of-credit disclosures that include more than the stated interest. Don't label a figure "APR" unless you know the calculation and disclosure rules that apply.

List every charge you mean to collect, including late fees, origination fees, and collection costs. Putting a fee in the contract doesn't make an otherwise unlawful charge legal.

Attach the actual repayment schedule

Spell out:

• The first payment date
• The payment frequency
• The number of payments
• The regular payment amount
• The final payment or maturity date
• How payments are allocated among fees, interest, and principal
• Whether the lender can change the payment account or method

For an interest-bearing loan, the schedule should show the opening balance, interest, principal reduction, and ending balance. Say how rounding works so the last payment isn't a surprise.

Define default without promising instant remedies

A missed payment doesn't, by itself, let the lender take property or demand every future installment. Define the default event, the written notice, and the cure period. If acceleration is intended, say so and check whether that term is allowed.

Collection costs, attorney fees, late fees, and interest after default may be limited by state law or by the type of transaction. Avoid wording that says the lender can "seize any assets" or contact an employer without following the legal process that actually applies.

Describe collateral separately

"Secured by the borrower's car" is usually too thin. A usable description can include the vehicle identification number, title information, location, and insurance requirements. Real estate generally needs a mortgage or deed of trust and recording. Business equipment may need a separate security agreement and a filing.

The loan contract can identify the collateral. Don't assume that sentence alone puts the lender ahead of other creditors.

Deal with co-signers and guarantors directly

Say whether the extra signer is jointly responsible from the start or only after a specified default. Cover notice rights, release conditions, and any cap on the obligation.

Nobody should sign a blank guaranty, or count on a verbal promise that they'll be taken off later. Put any release in writing and get it signed.

Sample loan repayment schedule

Here's a simple no-interest example:

• Principal: $5,000
• Interest: 0%
• Number of payments: 10
• Payment amount: $500
• First due date: April 1
• Later payments: the first day of each month

An interest-bearing schedule looks different. Build it from the stated annual rate, payment frequency, number of periods, and rounding method, then attach the results. Don't lock in a fixed payment if the rate can change unless the contract says exactly how that change works.

U.S. rules, limits, and documents

There isn't one nationwide loan-contract form that covers every U.S. deal. The borrower's state and the lender's state can both matter. So can the loan's purpose, who the lender is, the rate and fees, whether property secures the debt, and whether the borrower is a consumer, a business, an employee, or a student.

Interest caps, late-fee rules, licensing, required notices, and court procedures differ by state. Federal consumer-credit rules may also require specific cost or payment disclosures for covered transactions. Calling a loan "business purpose" doesn't automatically wipe out every requirement.

Witnesses and notarization aren't universally required for a basic unsecured loan. They can help show a signature is genuine. They don't fix an unlawful rate, replace a required security filing, or guarantee collection.

What doesn't control a U.S. private loan

Don't paste foreign consumer-credit rules into a U.S. agreement. The European Consumer Credit Directive, a French ordinance, German Civil Code provisions, and UK or Philippine court procedures don't set the rights or deadlines for a private U.S. loan.

An SEC corporate filing can show how a negotiated commercial deal was written. It still isn't a consumer template, and it doesn't prove that every remedy will work in a particular state. Federal employee service-agreement limits also don't govern a private student loan between individuals.

Loan or gift? Keep the story consistent

If the lender expects repayment, write it as a loan and keep a payment record. If nobody expects the money back, calling it a loan can cause trouble later, especially after a death, divorce, bankruptcy, or estate fight.

Agree up front on:

• Whether interest is charged
• What happens if the borrower can't pay
• Whether the balance stays due from the borrower's estate
• Whether any amount may be forgiven
• What proof will show a forgiveness condition was met
• Who gets payments if the lender dies or assigns the debt

No-interest and below-market family loans, gifts, and forgiven balances can raise tax questions. Keep principal and interest records separate, and check current IRS and state rules instead of copying numbers from an old form. TaxAct's family-loan overview can help you list questions for a tax professional. It isn't a substitute for current tax guidance.

The lender should also ask whether the risk is affordable. Investopedia's guidance on lending to friends and family suggests considering whether you could absorb a total loss before you agree to lend. A contract can clarify expectations. It can't make an unaffordable loan safe.

Before signing and after funding

Work through this list:

• Confirm names, addresses, and signing authority.
• Check that the borrower understands the amount owed and every due date.
• Confirm the rate and charges comply with applicable law.
• Remove unused options and fill every blank.
• Attach the repayment schedule and any guaranty or security document.
• Sign before funding when possible.
• Give both parties a complete, identical copy.
• Store transfer records, payment receipts, and written messages together.
• Record each payment against the correct balance.
• Use a signed written amendment for any new due date, missed-payment plan, or forgiveness.
• Provide a written payoff statement when the balance reaches zero.

If you download a third-party Word or PDF form, check its jurisdiction, revision date, cancellation or download terms, and any paid features before you enter personal information. A clean layout doesn't mean the clauses fit your loan.

What to do after a missed payment

Start with the signed agreement and the payment ledger.

1. Confirm the amount and date of the missed payment.
2. Send a written notice that identifies the amount due and the cure deadline in the agreement.
3. Keep proof the notice was delivered.
4. If both sides agree to a new schedule, put it in a signed amendment.
5. If the debt stays unpaid, look at lawful collection or court options in the relevant state.
6. Get advice before going after collateral, dealing with bankruptcy, or making a large claim.

Small-claims limits, filing steps, and time limits for contract claims vary by state. A judgment also doesn't mean the borrower has assets or income you can actually collect.

Frequently asked questions

Is a written loan contract required between friends?

There's no single U.S. rule that forces friends to sign a contract for every loan. Some claims still need writing under state law, and a signed page is much easier to prove than a handshake or a text thread. If losing the money would hurt, write the terms down.

Is a promissory note enough?

It may be enough for a simple unsecured debt with a clear payment promise. A full loan agreement is more useful when the deal includes collateral, a guarantor, permitted use of funds, reporting duties, default remedies, or special repayment conditions.

Should I notarize the agreement?

Not always. Requirements vary by state and document type. A notary or witness may help confirm execution, but it doesn't make an invalid term enforceable and usually doesn't replace documents needed for real estate or other collateral.

Can I charge no interest?

You can state a 0% rate when that arrangement is permitted, but family loans with no interest or below-market interest can create tax questions. Write "0%" clearly instead of leaving the rate blank.

Can I use this template for a house, car, or business?

Not by itself. Real estate, vehicle liens, business loans, employee loans, repeated lending, and cross-border transactions can require additional documents or rules. Use the specialized form that matches the deal, and consider professional review before money changes hands.

Can a loan include forgiveness?

Yes. The agreement can describe a forgiveness condition. State the exact event, deadline, amount forgiven, required proof, and what happens if the condition isn't met. Review the tax consequences before relying on the clause.

If both sides are ready, copy the form, fill every blank, attach the payment schedule, and sign matching copies before the funds leave the account.