Fillable Form Personal Loan Agreement Template

What is a Personal Loan Agreement?

A personal loan agreement is a document that specifies the terms and conditions of a loan between a lender and a borrower. This document is regarded as a contract, and both parties must adhere to its terms, conditions, and applicable laws. If there is a conflict, this written document can serve to protect the parties.

The personal loan agreement states the following:

• How much you’re borrowing
• When the borrower promises to pay it back
• Any fees and penalties you’ve agreed to pay, depending on the situation
• Payment methods
• Terms and conditions of the loan

Where to get a Personal Loan Agreement?

Financial organizations that offer personal loans will most likely provide and ask you to sign a personal loan agreement. These organizations include the following:

• Banks
• Credit unions
• Online lenders
• Payday lenders

For informal lending, such as borrowing money from a friend or relative, they may need you to write and sign an agreement at their discretion. Both the lender and the borrower can create a personal loan agreement. Several websites also offer a Personal Loan Agreement template.

For your convenience, a Personal Loan Agreement template that you can electronically fill out is available on PDFRun

How to fill out a Personal Loan Agreement template?

Here is a guide on how to fill out a Personal Loan Agreement template:

I. The Parties

Agreement

Enter the date the agreement was made.

Borrower

Enter the full name of the borrower.

Mailing Address

Enter the mailing address of the borrower, including the City, State, and ZIP code.

Lender

Enter the full name of the lender.

Mailing Address

Enter the mailing address of the lender, including the City, State, and ZIP code.

II. Loan Amount

Enter the total amount of the loan.

III. Interest

Mark the appropriate box to determine if the loan amount shall bear interest or not. If the loan bears interest, enter the interest rate compounded annually in words and numbers.

IV. Payment

Mark the box to determine the repayment plan that applies to the loan agreement. You may select:

• Weekly payment — Enter the total amount to be paid each week, the beginning date of the payment, and the ending date of the payment.

• Monthly payment — Enter the total amount to be paid each month, the beginning date of the payment, and the ending date of the payment.
• Lump sum of — Enter the total amount to be paid and the date of payment.
• Other — Enter the repayment plan to be used and the details of the payment.

V. Payment Instructions

Enter instructions that the borrower should follow in making payments to the lender.

VI. Late Fee

Enter the number of days the payment was late. Then, mark the box to determine the consequence of the late payment. You may select:

• Charge a late fee of — Enter the late fee amount.
• Shall not charge a late

VII. Security

Mark Unsecured if there is no security provided in this agreement; otherwise, mark Secured and indicate the property to be transferred ownership and possession once the borrower fails to pay the loan.

VIII. Prepayment

This section states that the borrower has the right to pay back the loan in full or make additional payments, at any time, without penalty.

IX. Remedies

This section states that there is no delay or omission on part of the holder of this agreement in exercising any right hereunder shall operate as a waiver of any such right or of any other right such holder. The rights and remedies of the lender may be cumulative and may be pursued singly, successively, or together.

X. Events of Acceleration

This section states that the occurrence of any of the following shall constitute an “Event of Acceleration” by the lender under this agreement:

• Borrower’s failure to pay any part of the principal or interest as and when due under this agreement.
• Borrower’s becoming insolvent or not paying its debts as they become due.

XI. Acceleration

This section states that lenders have the right to declare all monies under this Agreement immediately due and payable.

XII. Subordination

This section states that the borrower's obligations under this Agreement are subordinated to all indebtedness, if any, of the borrower to any unrelated third-party lender to the extent such indebtedness is outstanding on the date of this Agreement and such subordination is required under the loan documents.

XIII. Waiver by borrower

This section states that all parties to this Agreement waive protest, presentment, a notice of dishonor, and notice of acceleration of maturity. All parties agree to continue to remain bound for the payment of principal, interest and all other sums due under this Agreement notwithstanding any change or changes by way of release, surrender, exchange, modification, or substitution. They also agree that the same may be made without notice or consent of any of them.

XIV. Successors

This section states that this Agreement is a promise of the Borrower and shall bind themselves including the Borrower's successors, heirs, and assigns; provided, however, that Lender may not assign any of its rights or delegate any of its obligations without the prior written consent of the holder of this Agreement.

XV. Governing Law

Enter the state to determine the laws that will be applied to the loan agreement.

XVI. Expenses

This section states that in case any payment under this Agreement is not paid when due, the Borrower agrees to pay the Lender, in addition to the principal and interest hereunder, reasonable attorneys' fees if the Lender must hire legal counsel to assist in retrieving the Borrower's outstanding balance. Attorneys' fees shall accumulate interest starting from the date paid. The interest rate shall not equal the maximum usury rate in the State of Governing Law.

XVII. Additional Terms and Conditions

Enter additional terms and conditions that may apply to the loan agreement.

XVIII. Entire Agreement

This section states that this Agreement contains all the terms agreed by the borrower and lender relating to its subject matter. It also replaces all previous discussions, understandings, and oral agreements.

In Witness whereof,

Borrower’s Signature Over Printed Name

Enter the full name of the borrower and affix his or her signature above it.

Date

Enter the date it was signed by the borrower.

Lender’s Signature Over Printed Name

Enter the full name of the lender and affix his or her signature above it.

Date

Enter the date it was signed by the lender.

Types of personal loans

Co-signed

It is a type of personal loan in which multiple parties guarantee repayment. If you have a terrible or do not have a credit history, a lender may require you to have a cosigner, who will bear responsibility for the loan if you fail to pay. A consigner acts as insurance for the lender. Having one may increase your chances of being approved and providing better loan terms.

Secured

A secured loan is an installment loan that is secured by properties such as a car, a savings account, or another asset. If the borrower fails to pay, the lender has the option to take the property to settle all or part of the outstanding balance.

Unsecured

An unsecured personal loan is a loan that is repaid in monthly installments over time. This type of loan may be easier to obtain if you have good credit because it is not secured by collateral.

Fixed-Rate

It is those in which the interest rate charged in the loan remains constant throughout the loan's term, regardless of market interest rates.

Variable Rate

It is a loan in which the interest rate charged on the outstanding balance varies to changes in market interest rates. Its interest rate is linked to an underlying benchmark or index, such as the federal funds rate.