Simple Personal Loan Agreement Sample - Agreement Between Borrower and Lender

If you're in need of a simple and straightforward personal loan agreement, you've come to the right place! At BizzLibrary.com, we offer a comprehensive collection of ready-to-use document templates, including a sample of a simple personal loan agreement. Our template provides all the necessary terms and conditions to ensure a smooth lending process between the borrower and the lender.

What is a Personal Loan Agreement?

A personal loan agreement is a legally binding contract between a borrower and a lender that outlines the terms and conditions of a loan. Whether you're lending money to a friend or family member or borrowing from an individual or institution, having a written agreement helps protect both parties' interests and prevents any potential misunderstandings.

Key Elements of a Simple Personal Loan Agreement

A simple personal loan agreement should cover essential details to clarify the rights and responsibilities of the borrower and the lender. Here are some crucial elements to include:

1. Parties Involved: Clearly state the full names and contact information of both the borrower and the lender.
2. Loan Amount and Terms: Specify the total amount of the loan, the interest rate (if applicable), and the repayment terms, including the frequency and duration of payments.
3. Repayment Schedule: Outline the repayment schedule, such as the due dates, the amount of each installment, and any additional penalties or fees for late payments.
4. Collateral (if applicable): If the loan is secured by collateral, describe the asset in detail and include provisions related to its valuation, handling, and potential foreclosure.
5. Default and Remedies: Address what constitutes a default, how it will be determined, and the actions that can be taken by the lender if the borrower fails to meet their obligations.
6. Termination and Prepayment: Specify the conditions under which the loan agreement can be terminated early or prepayment can be made, and whether any penalties or fees apply.
7. Governing Law and Jurisdiction: Establish the governing law and jurisdiction for any potential disputes.

Download Our Simple Personal Loan Agreement Sample

Ready to draft your own personal loan agreement? Look no further! Visit BizzLibrary.com and download our simple personal loan agreement template in DOCX format. It's easy to customize and provides a solid foundation for your lending arrangements. Take control of your lending agreements today and ensure a smooth and transparent lending process.

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