0 hidden charges. 0 forex

How to Write Up a Personal Loan Agreement?

Reviewed by
Created on
May 19, 2023


What’s Inside


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.

Important considerations for drafting a Personal Loan Agreement

A personal loan agreement should include the following information:

1. Loan Amount

The amount of money being borrowed should be stated in the agreement.

2. Interest Rate

The interest rate should be clearly stated in the agreement, along with how it will be calculated.

3. Repayment Schedule

The repayment schedule should be outlined in the agreement, including the frequency of payments and the due dates.

4. Payment Amount

The amount of each payment should be stated in the agreement.

5. Late Payment Penalties

The agreement should state any penalties for late payments or missed payments.

6. Prepayment Terms

If the borrower plans to pay off the loan early, the agreement should state any prepayment terms.

7. Collateral

If the loan is secured by collateral, the agreement should describe the collateral and how it will be used to secure the loan.

8. Governing Law

The agreement should state which state's laws will govern the agreement.

9. Signatures

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 is an example of a personal loan agreement


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.

[Lender Name]

By: ___________________________

Name: _________________________

Title: __________________________

[Borrower Name]

By: ___________________________

Name: _________________________

Title: __________________________

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.

Get pre-approved personal loans directly to your Savings Account through the Fi Money app. On Fi, this process is 100% paperless, and the loans are provided at competitive interest rates — where each user remains in control with complete visibility of all details. Plus, you can avoid EMI late fees by setting up automatic in-app payments. Our licensed partner bank, Federal Bank, assigns an eligible loan amount to each user (up to ₹5 lakhs).

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.

Frequently Asked Questions

1. What should be written in a loan agreement?

A loan agreement should include the following details -

  • Loan amount
  • Interest Rate
  • Repayment schedule
  • Penalties for late payment
  • Collateral
  • Governing law
  • Signatures

2. How do I make a money lending agreement?

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.


Fi Money is not a bank; it offers banking services through licensed partners and investment services through epiFi Wealth Pvt. Ltd. and its partners. This post is for information only and is not professional financial advice.
Share this article
Copied Link!
Loans and Lending
How to Write Up a Personal Loan Agreement?


View similar articles in
Loans and Lending
Get the Fi app