Loan Agreement Format in Word

A loan agreement is a crucial document for establishing the terms and conditions of a loan between a lender and a borrower. It outlines the specifics of the loan, including the amount, interest rate, repayment schedule, and other relevant details. Below is a detailed guide on how to structure a loan agreement using Microsoft Word.

Title: Loan Agreement

Parties:

• Lender: [Lender’s Name], [Lender’s Address]
• Borrower: [Borrower’s Name], [Borrower’s Address]

Loan Amount: The lender agrees to loan the borrower the sum of [Loan Amount in Words] ([Loan Amount in Figures]), to be used for [Purpose of Loan].

Interest Rate: The loan will accrue interest at a rate of [Interest Rate]% per annum. Interest will be calculated on a [Simple/Compound] basis.

Repayment Schedule: The borrower agrees to repay the loan in [Number] installments of [Installment Amount] each. Payments will be due on the [Day] of each month, starting on [Start Date] and ending on [End Date].

Late Payment: If the borrower fails to make a payment by the due date, a late fee of [Late Fee Amount] will be charged. Continued failure to pay may result in legal action.

Prepayment: The borrower may prepay the loan in full or in part at any time without penalty.

Collateral: [Details of Collateral, if any, such as a car, house, or other assets].

Default: In the event of default, the lender has the right to [Details of Default Actions, such as repossession of collateral or legal action].

Governing Law: This agreement will be governed by and construed in accordance with the laws of [State/Country].

Signatures: Both parties agree to the terms of this loan agreement and acknowledge their understanding and acceptance by signing below.

Lender Signature: _________________________
Date: __________________

Borrower Signature: _________________________
Date: __________________

Witness Signature: _________________________
Date: __________________

Witness Name: _________________________
Address: _________________________

Notary Public (if required):
Signature: _________________________
Seal: __________________
Date: __________________

Attachments:

• Proof of identity for both parties
• Proof of collateral (if applicable)
• Any additional documents required by law or lender