A personal loan contract is a legal agreement between a lender and a borrower. It specifies the loan amount, the interest rate, the repayment schedule, and any retribution for late or absent payments. The pact may also contain any assurance that the borrower has offered to secure the loan.
The intent of a personal loan agreement is to shield both the borrower and the lender by ensuring that the loan's provisions are enforceable. It is important for both parties to carefully check and understand the arrangement before signing.
A personal loan agreement should include the following information:
The amount of money being borrowed should be stated in the agreement.
The interest rate should be clearly stated in the agreement, along with how it will be calculated.
The repayment schedule should be outlined in the agreement, including the frequency of payments and the due dates.
The amount of each payment should be stated in the agreement.
The agreement should state any penalties for late payments or missed payments.
If the borrower plans to pay off the loan early, the agreement should state any prepayment terms.
If the loan is secured by collateral, the agreement should describe the collateral and how it will be used to secure the loan.
The agreement should state which state's laws will govern the agreement.
Both the borrower and the lender should sign the agreement to make it legally binding.
It is important to consult with a lawyer to ensure that the agreement complies with any applicable laws and regulations.
This Loan Agreement (“Agreement”) is entered into on [Date] between [Lender Name] (“Lender”), with an address of [Address], and [Borrower Name] (“Borrower”), with an address of [Address].
Loan Amount: [Amount of the Loan]
Interest Rate: [Interest Rate of the Loan]
Repayment Terms: [Repayment Terms of the Loan]
Collateral: [Collateral to be offered by Borrower]
Termination: This Agreement shall terminate upon the full and final repayment of the loan.
Governing Law: This Agreement shall be governed by the laws of [State].
Entire Agreement: This Agreement represents the entire understanding between the Lender and the Borrower.
IN WITNESS WHEREOF, the Lender and the Borrower have executed this Agreement as of the date first above written.
Please note: This is a very basic personal loan agreement sample and may not be suitable for all circumstances. It is important to consult with a lawyer to draft a personalised loan agreement that complies with applicable laws and regulations and protects the interests of both parties involved.
At last, writing up a personal loan agreement requires careful consideration and attention to detail to ensure that all terms and conditions of the loan are clearly stated and agreed upon by both parties. A well-drafted loan agreement can help prevent misunderstandings, protect the interests of both the lender and borrower, and provide a legal document for reference in case of disputes.
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Disclaimer: This article contains general legal information and does not contain legal advice. The law is complex and changes often. For legal advice, please ask a lawyer.
A loan agreement should include the following details -
To make a money lending agreement, you need to determine the terms of the loan, including the loan amount, interest rate, repayment schedule, and any penalties for late or missed payments. You should also include any collateral that the borrower has pledged to secure the loan. You can use a loan agreement template or consult with a lawyer to draft a legally binding loan agreement. Both the borrower and the lender should sign the agreement, and a copy should be kept for your records.