Sample Loan Agreement

Introduction

This document serves as a sample loan agreement intended for educational purposes. It outlines the standard terms and conditions of a loan agreement between a lender and a borrower. This sample should be customized to fit specific needs and legal requirements before use.

Loan Agreement

This Loan Agreement (the "Agreement") is made and entered into as of [Date], by and between:

Lender:
Name: [Lender's Name]
Address: [Lender's Address]

Borrower:
Name: [Borrower's Name]
Address: [Borrower's Address]

1. Loan Amount

The Lender agrees to loan the Borrower the principal sum of [Loan Amount] (the "Loan").

2. Purpose of the Loan

The Loan shall be used exclusively for [Purpose of the Loan]. The Borrower agrees not to use the Loan for any other purpose without prior written consent from the Lender.

3. Interest Rate

The Loan shall bear interest at the rate of [Interest Rate]% per annum, calculated on the basis of a 360-day year.

4. Repayment Terms

The Borrower agrees to repay the Loan in [Number] monthly installments of [Monthly Payment Amount] each, starting on [First Payment Date] and continuing on the same day of each subsequent month until the Loan is paid in full. The final payment will be due on [Maturity Date].

5. Prepayment

The Borrower may prepay the Loan, in whole or in part, at any time without penalty. Prepayments will be applied first to accrued interest and then to the principal balance.

6. Default

In the event of default, which includes but is not limited to the Borrower's failure to make a payment when due or the Borrower's insolvency, the Lender may declare the entire unpaid principal balance and all accrued interest immediately due and payable. The Lender may also pursue any legal remedies available under the law.

7. Representations and Warranties

The Borrower represents and warrants that:

• They are duly authorized to enter into this Agreement.
• The Loan will be used solely for the purpose specified in this Agreement.
• All financial statements and information provided to the Lender are accurate and complete.

8. Governing Law

This Agreement shall be governed by and construed in accordance with the laws of [State/Country].

9. Amendments

This Agreement may be amended only by a written document signed by both parties.

10. Notices

All notices required under this Agreement shall be in writing and sent to the addresses listed above or to such other addresses as either party may designate in writing.

11. Miscellaneous

This Agreement constitutes the entire agreement between the parties and supersedes all prior agreements and understandings, whether written or oral. If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall continue in full force and effect.

IN WITNESS WHEREOF, the parties have executed this Loan Agreement as of the date first above written.

Lender:
By: _________________________
Name: [Lender's Name]
Title: [Title, if applicable]

Borrower:
By: _________________________
Name: [Borrower's Name]
Title: [Title, if applicable]