Simple Loan Agreement Sample

This Simple Loan Agreement ("Agreement") is made and entered into as of [Date], by and between [Lender's Name], residing at [Lender's Address] ("Lender"), and [Borrower's Name], residing at [Borrower's Address] ("Borrower").

1. Loan Amount and Disbursement Lender agrees to loan Borrower the principal sum of $[Loan Amount] (the "Loan"). The Loan will be disbursed to Borrower on [Disbursement Date] by [method of payment, e.g., bank transfer, check, etc.].

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

3. Repayment Terms Borrower agrees to repay the Loan in [Number] equal monthly installments of $[Installment Amount] each, commencing on [Start Date] and continuing on the [Day] of each month thereafter until the Loan is paid in full.

4. Late Payment If Borrower fails to make any payment under this Agreement within [Number] days after the due date, Borrower shall pay a late fee of $[Late Fee Amount] for each such late payment.

5. Prepayment Borrower may prepay the Loan in whole or in part at any time without penalty. Any prepayment shall first be applied to accrued interest and then to the principal amount of the Loan.

6. Default In the event of default, including but not limited to failure to make any payment within [Number] days of its due date, Lender may declare the entire unpaid principal balance and accrued interest immediately due and payable. Borrower agrees to pay all costs and expenses incurred by Lender in enforcing this Agreement, including reasonable attorney’s fees.

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

8. Amendments This Agreement may only be amended or modified by a written agreement signed by both parties.

9. Severability If any provision of this Agreement is found to be invalid or unenforceable, the remaining provisions shall continue in full force and effect.

10. Entire Agreement This Agreement constitutes the entire agreement between the parties and supersedes all prior agreements and understandings, whether written or oral, relating to the subject matter of this Agreement.

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

[Lender's Name]
Signature: ________________________
Date: ___________________________

[Borrower's Name]
Signature: ________________________
Date: ___________________________