Simple Loan Agreement Example

Lender:
Name: [Lender’s Name]
Address: [Lender’s Address]
Email: [Lender’s Email]
Phone: [Lender’s Phone Number]

Borrower:
Name: [Borrower’s Name]
Address: [Borrower’s Address]
Email: [Borrower’s Email]
Phone: [Borrower’s Phone Number]

1. Loan Amount and Disbursement
The Lender agrees to loan the Borrower the sum of [Loan Amount] (the "Loan"). The Loan will be disbursed to the Borrower’s account on [Disbursement Date].

2. Interest Rate
The Loan will bear interest at an annual rate of [Interest Rate]%. Interest will be calculated on the outstanding principal balance and will accrue daily.

3. Repayment Terms
The Borrower agrees to repay the Loan in [Number] installments of [Installment Amount] each, starting on [First Payment Date] and continuing on the [Payment Frequency] thereafter. Payments will be due on the [Day of Month] of each month.

4. Late Fees
If the Borrower fails to make a payment within [Number] days of the due date, a late fee of [Late Fee Amount] will be charged.

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

6. Default
If the Borrower defaults on the Loan, the Lender has the right to demand immediate repayment of the entire outstanding balance, including accrued interest and any applicable fees.

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

8. Miscellaneous

• Amendments: Any amendments to this Agreement must be in writing and signed by both parties.
• Severability: If any provision of this Agreement is found to be invalid or unenforceable, the remaining provisions will remain in full force and effect.
• Entire Agreement: This Agreement constitutes the entire agreement between the parties and supersedes all prior agreements and understandings.

IN WITNESS WHEREOF, the parties hereto have executed this Loan Agreement as of the day and year first above written.

Lender:
Signature: ________________________
Name: [Lender’s Name]
Date: [Date]

Borrower:
Signature: ________________________
Name: [Borrower’s Name]
Date: [Date]