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Fillable Form Consumer Loan Agreement

A Consumer Loan Agreement is an agreement that indicates all the credit sales to be paid, hire-purchase, secured and unsecured loans, given to a consumer to finance specific types of expenditures by a creditor.


What is a Consumer Loan Agreement?

A consumer loan agreement is a contract in which a borrower and lender regulate rules of mutual liability for granting a loan. The loan agreement is used to finance the consumer’s expenditures and served as a document of mutual promises made by the involved parties.

What is the purpose of a Consumer Loan Agreement?

The principal purpose of a loan agreement specifies the agreements the involved parties are agreeing to, their responsibilities, and the period that the agreement will last. Legally, a consumer loan agreement shall abide by the law of state and federal regulations for the protection of both the lender and the borrower at a time that they may have failed to obey the agreement.

Furthermore, loan contracts clearly state the intent of lending and how the terms will take into action. A signed loan contract serves as evidence that the borrower and the lender have agreed on how the funds will be used and how the money will be paid.

Why do you need a Consumer Loan Agreement?

Borrowing and lending money is a big commitment regardless of the amount, therefore, having an agreement is vital for protection in terms of amending the loan, especially if it breaks the precepts. Generally, a loan agreement presents all the details and the purpose of the loan. The terms are essentially needed for specifying commitments, such as the amount given, expectations in return, ways, and period of time.

How to fill out a Consumer Loan Agreement?

Filling out a consumer loan agreement is simple. You just need to have the basic information of the borrower(s), the lender(s), and co-borrower(s), if applicable.


Enter the full legal name of the borrower and enter the full legal name of the lender in the blank space provided, respectively.


To get the right order, enter first the day, month, and year for this agreement.


Indicate the number of months that the borrower promises to pay the lender.

Enter the amount of money you loan in words.

Enter the amount of money in numbers.


Read and understand the agreement so far before you fill out the preceding terms.


Indicate the amount of money that you will pay to the lender as follows:

  • Amount of loan
  • Other. Specify the details.
  • Amount of financed.
  • Total of payments.
  • Annual percentage rate.


  • Enter the full amount you would like to loan.
  • Enter the monthly amount you wish to repay as installments.
  • Enter the specific day for each starting month for amending your payment.
  • Indicate the day, month, and year as the start of your payment.
  • Indicate the day, month, and year as the end of your payment.


Prepayment is an early payment of the remaining outstanding balance of the loan to get a rebate and take advantage of lower interest rates. A prepay could either be settled in parts or full.


Enter the amount of late charge interest.


State the security interest to create a legal claim on collateral that has been pledged.

Note: A security interest grants the lender the right to repossess all or part of the property if the borrower is unable to pay the loan.


When the borrower fails to make the payment on time, the lender has the power to demand to have the remaining unpaid loan balance and when the final payment is due, interest will be added to the unpaid payment. Enter the amount of interest in words and type it in numbers in the parenthesis.


Be advised that the lender will have the right to pay the loan by taking your money from a deposit account or security to cover the unpaid payments at any time the borrower fails to commit to paying the loan.

If given an extension of time to pay the loan, the borrower still must repay the remaining unpaid balance.


A collection fee compensates the attorney for collecting a loan, and the attorney’s fee of 15% will be added to the unpaid balance of the loan.


If there are co-borrowers for this loan agreement, the co-borrower agrees to the liabilities pledged together with the borrower.


Sign the loan agreement with the borrower, lender, and co-borrower to acknowledge and pledge agreement with the terms of the loan. If you fail to commit to the terms, you will face consequences and penalties.


  1. You are obliged to follow the terms when applying for a consumer loan agreement.
  2. Before filing a loan agreement, plan the best financial strategies to repay your loan to the lender.
  3. Maintain a job or business to have a source of income to pay your loan.
  4. Use the loan for its intended purpose. If it happens to be used for business, strategized wisely to grow your business.
  5. A loan is a good investment for a business. However, buying things compulsively is not a good idea for loaning, hence a dead investment.
  6. If you have extra earnings, save it for the next coming month(s) of paying the loan.
  7. Having a co-borrower helps you pay the loan easily and on time.
  8. Repaying your loan on time would prevent incurring additional interest and late fees.
  9. Making a prepayment gives you the benefit of rebates and lower interest rates.
  10. A prepayment allows you to have lower interest and can refinance you for a new loan.
  11. Keep in mind the past due date of the agreement so you won’t be charged for any late fees or additional interest.
  12. Make payments before the due to prevent interest charges.
  13. If you have enough funds that are bearable for your future needs, save and use them wisely.

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