Simple Loan Agreement Template

Created by:

[Lender.FirstName][Lender.LastName]

[Lender.Company]

Prepared for:

[Borrower.FirstName][Borrower.LastName]

[Borrower.Company]

Parties to the Agreement

This Loan Agreement ("Agreement") is entered into on (Date), (the "Effective Date"), by and between:

Lender

Name:[Lender.FirstName][Lender.LastName]

Address:[Lender.StreetAddress][Lender.City][Lender.State][Lender.PostalCode]

Social Security Number (if applicable): (Lender's SSN or Tax ID)

and

Borrower

Name:[Borrower.FirstName][Borrower.LastName]

Address:[Borrower.StreetAddress][Borrower.City][Borrower.State][Borrower.PostalCode]

Social Security Number (if applicable): (Borrower's SSN or Tax ID)

Recitals and Background Information

WHEREAS, the Borrower has requested a loan from the Lender for the purpose of (Specify the Purpose of the Loan), and the Lender is willing to provide such a loan;

WHEREAS, both Parties have the legal capacity to enter into this Loan Agreement, and the terms and conditions of this Agreement have been negotiated and agreed upon between them;

WHEREAS, the Parties wish to memorialize the terms of the loan, including the principal amount, interest rate, repayment terms, and any other relevant terms and conditions;

Lending Terms

The Lender agrees to lend to the Borrower the principal sum of $(Insert Loan Amount) (the "Loan Amount"), subject to the terms and conditions set forth in this Agreement.

Interest Rate and Calculations

The Loan shall bear interest at an annual rate of (Insert Interest Rate) percent ((Insert Interest Rate)%) calculated on the outstanding principal balance.

Interest shall be calculated on the basis of a (Insert Interest Calculation Method) method.

Payment Schedule

The Borrower shall repay the Loan Amount along with accrued interest in (Insert Payment Frequency) installments.

The first payment shall be due on (Insert First Payment Due Date), and subsequent payments shall be due on the same day of each (Insert Payment Frequency) thereafter.

If a due date falls on a weekend or a public holiday, the payment shall be due on the next business day.

Application of Payments

Payments received shall first be applied to any outstanding late fees, charges, and expenses incurred by the Borrower.

Any remaining amount shall be applied to accrued interest, and the remainder, if any, shall be applied to the outstanding principal balance.

Late Fees

In the event the Borrower fails to make a payment within (Insert Grace Period) days of the due date, the Borrower shall be responsible for paying a late fee of $(Insert Late Fee Amount).

Default and Remedies

The Borrower shall be considered in default under this Agreement if they fail to make any payment, including principal and interest, as required under the terms of this Agreement.

In the event of Borrower's default under this Loan Agreement, Lender shall have the following remedies:

The lender may declare the entire unpaid principal and accrued interest immediately due and payable.
If this Loan Agreement is secured by collateral, the Lender may, at its discretion, exercise any and all rights and remedies provided by applicable law and by any security agreement or other documents executed in connection with such collateral.
The lender may pursue any legal remedies available under the law, including but not limited to filing a lawsuit to recover the outstanding amounts due.

Governing Law

This Loan Agreement (the "Agreement") and any dispute arising out of or related to this Agreement shall be governed by and construed in accordance with the laws of the (Jurisdiction).