Loan Agreement
Simple loan agreement for friends, family, or small business loans
Complexity
SimpleEstimated Time
~8 minutes
Best For
Freelancers and independent contractors, Small businesses and agencies
When to Use This Template
Good fit for:
- ✓Loans between friends, family, or business partners
- ✓Small business loans with clear terms
- ✓Personal or business lending with structured repayment
Not recommended for:
- ✗Informal handshake loans (formalize with this)
- ✗Bank loans (use bank forms)
Key Clauses
Important clauses included in this template and what they mean for you.
Collateral/Security
StandardAn asset pledged as backup if the loan is not repaid.
Guarantor
RiskySomeone else agrees to pay if the borrower cannot.
Late Payment Fees
StandardExtra charges if payments are late.
Common Mistakes
Watch out for these pitfalls when using this template.
Including Guarantor without understanding risks
Why it matters:
A guarantor (often a parent or business partner) provides additional security. They become responsible if the borrower defaults.
How to avoid it:
Carefully review state restrictions and negotiate terms to align with your situation.