Are you in need of a loan but unsure of how to draft a loan agreement? Look no further than this sample draft of a loan agreement.
This Loan Agreement (the “Agreement”) is made on [date] by and between [lender name] (the “Lender”), and [borrower name] (the “Borrower”). The Lender and Borrower hereby agree as follows:
1. Loan Amount. The Lender shall loan to the Borrower the sum of [loan amount] (the “Loan”).
2. Interest. The Borrower shall pay interest on the Loan at a rate of [interest rate]% per annum.
3. Repayment. The Borrower shall repay the Loan in [number] monthly payments of [payment amount], beginning on [date].
4. Late Payment. If the Borrower fails to make any payment when due, the Borrower shall pay a late fee of [late fee amount].
5. Default. If the Borrower fails to make any payment when due and such failure continues for [number] days, the Lender may declare the entire unpaid balance of the Loan immediately due and payable.
6. Collateral. This Loan is secured by the following collateral: [description of collateral].
7. Governing Law. This Agreement shall be governed by the laws of the state of [state].
8. Entire Agreement. This Agreement constitutes the entire agreement between the parties and supersedes all prior negotiations, understandings, and agreements between them.
9. Modification. This Agreement may not be modified except in writing signed by both parties.
10. Binding Effect. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, executors, administrators, successors, and assigns.
IN WITNESS WHEREOF, the parties have executed this Loan Agreement as of the date first above written.
By using this sample draft as a guide, you can ensure that your loan agreement includes all necessary information and protects both the lender and borrower. Remember to always seek legal advice and tailor the agreement to your specific needs and circumstances. Happy lending!