Sample Personal Loan Agreement between Two Parties

When two parties agree to a personal loan, it is important to have a written agreement detailing the terms of the loan. A personal loan agreement serves as a legal contract between the borrower and lender, outlining the amount borrowed, the interest rate, the repayment schedule, and other important details.

Below is a sample personal loan agreement between two parties that can be used as a reference when drafting your own agreement:

Personal Loan Agreement

This Personal Loan Agreement (the “Agreement”) is entered into on [Date] (the “Effective Date”) by and between [Lender Name], located at [Lender Address], and [Borrower Name], located at [Borrower Address].

Loan Amount and Interest Rate

The Lender agrees to loan the Borrower [Loan Amount] (the “Loan Amount”) at an interest rate of [Interest Rate] (the “Interest Rate”). The Borrower agrees to repay the Loan Amount plus interest in accordance with the terms and conditions of this Agreement.

Repayment Schedule

The Borrower agrees to repay the Loan Amount plus interest in [Number of Installments] (the “Installments”) scheduled as follows:

[Repayment Schedule]

Default and Late Payment

If the Borrower fails to make any payment when due, the Borrower will be in default, and the Lender may declare the entire Loan Amount plus interest immediately due and payable. In addition, the Borrower will be responsible for any costs incurred by the Lender in attempting to collect the outstanding debt, including reasonable attorney fees.

Governing Law

This Agreement will be governed by and construed in accordance with the laws of the state of [Governing Law]. Any legal action arising from this Agreement will be resolved in the courts of [Jurisdiction].

Entire Agreement

This Agreement represents the entire understanding between the parties and supersedes any prior negotiations, understandings, or agreements, whether written or oral, between the parties regarding the Loan Amount.


No amendments to this Agreement will be effective unless in writing and signed by both parties.


Personal loan agreements are important legal documents that protect the interests of both parties. Using a sample personal loan agreement as a guide can help ensure that your agreement includes all of the necessary details and is legally binding. Remember to consult with a legal professional before signing any loan agreement to ensure you fully understand the terms and conditions.