Sample text in [brackets], replace with yours · Agreements, Plans & Business Documents
Loan Agreement Template (Word & PDF)
A simple written loan agreement between two people or businesses, with repayment plan and witnesses.
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Free for personal and commercial use · No watermark · Updated October 2026
Guide
About this loan agreement template
Lending money to a friend, relative, partner or business without paperwork is the fastest way to lose both the money and the relationship. This agreement records the amount and how it was paid, the purpose, whether there is interest, the instalment plan, what happens if a payment is late, any security, and how repayments are recorded, with signature blocks for both parties and two witnesses.
How to fill in a loan agreement
- 1
Click "Edit online", or download the Word file.
- 2
Enter the lender's and borrower's names, ID numbers and addresses.
- 3
Fill in the amount (in figures and words), how and when it was paid, and the purpose.
- 4
Choose interest-free or set the interest rate, then set the instalment amount and dates.
- 5
Both parties and two witnesses sign two copies; each party keeps one.
Tips for lending safely
Pay by bank
A bank transfer is proof the money was given. Avoid large cash loans.
Use post-dated cheques
Where common, cheques for each instalment make repayment easier to enforce.
Check interest rules
Some countries cap interest on private loans, and some communities prefer interest-free loans. Set it to suit.
Give receipts
Acknowledge each repayment in writing, and confirm in writing when the loan is fully repaid.
