Loan agreement template: free in Word, or sign it online
Reviewed in October 2026
A loan agreement is a contract where a lender gives money to a borrower who promises to repay it on set terms. It records the amount, interest, payment dates and what happens if payments stop. It works for loans between friends, family members or small businesses.
Ten documents free, no card. Signed by the lender and the borrower.
Example filled in with sample data
The full loan agreement
LOAN AGREEMENT
This Loan Agreement (the "Agreement") is made on [date] between [Lender name], of [address] (the "Lender"), and [Borrower name], of [address] (the "Borrower").
1. Loan
The Lender lends the Borrower [amount] USD (the "Loan"), delivered on [date] by [bank transfer / check / cash against receipt]. The Borrower confirms receipt by signing this Agreement.
2. Interest
The Loan bears interest at [rate]% per year on the unpaid balance, calculated [monthly]. [Option: The Loan bears no interest.] Interest will never exceed the maximum rate allowed by the law of [state].
3. Repayment
The Borrower will repay the Loan in [number] [monthly] payments of [amount] USD, due on the [day] of each month starting on [date], until paid in full. [Option: The Borrower will repay the full balance in one payment on date.]
Payments go to [account details or method]. Each payment is applied first to late fees, then to interest and then to principal.
4. Prepayment
The Borrower may prepay all or part of the Loan at any time without penalty.
5. Late payment
A payment more than [10] days late incurs a late fee of [amount or percentage], within the limits of applicable law.
6. Default
The Borrower is in default if a payment is more than [30] days late, if the Borrower becomes insolvent or if any statement in this Agreement is false. On default the Lender may, after written notice and [10] days to cure, declare the full unpaid balance due at once.
7. Security
[Option: This Loan is unsecured.] [Option: The Borrower grants the Lender a security interest in description of collateral, and will sign any document needed to perfect it.]
8. Collection costs
If the Lender must take legal action to collect, the Borrower will pay reasonable collection costs and attorney fees, as allowed by law.
9. General terms
This Agreement is governed by the laws of [state]. It may be changed only in writing signed by both parties. The parties agree to sign electronically, with the same effect as a handwritten signature.
LENDER
Signature: ______________________
Name: [full name]
Date: [date]
BORROWER
Signature: ______________________
Name: [full name]
Date: [date]
What the template includes
Amount, delivery date and proof of receipt
Interest rate, or a no-interest option, within the state limit
Installment or single-payment schedule
How each payment is applied
Prepayment without penalty
Late fee within legal limits
Default with notice and time to cure
Secured or unsecured option
Collection costs and governing law
What you fill in
Field
Example
Date
October 21, 2026
Lender
Patricia Nguyen
Borrower
Kevin Nguyen
Amount
8,000 USD by bank transfer
Interest
4% per year
Payments
24 monthly payments of 347.40 USD
First payment
December 1, 2026
Governing law
State of California
How it gets signed
1Choose “Use this template”, fill in the fields and read the full loan agreement once more.
2Send it by WhatsApp or email. The other party opens the link on their phone without an account.
3They tap the brown bar at the bottom that says “Sign as …” and draw their signature with a finger.
4Everyone gets the signed PDF with its signature certificate. Anyone can check it at signsolu.com/verificar.
Before signing, each signer agrees to sign electronically. The screen links to the electronic signature disclosure the ESIGN Act asks for.
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What the law says
Each state sets its own maximum interest rates, known as usury limits, and its own rules on late fees. Clause 2 caps the rate at the state limit so the agreement stays valid if the rate is set too high.
Loans between family members at very low or zero interest can have federal tax effects for large amounts. Ask a tax adviser before lending a large sum to a relative.
The ESIGN Act gives an electronic signature the same effect as ink. The signed PDF and its certificate prove the borrower accepted the terms.
Loan agreement or promissory note
A promissory note is a short promise to pay, signed by the borrower alone. A loan agreement is a full contract signed by both. It covers default, security and collection in detail.
For small, informal loans a note can be enough. For larger amounts, or loans with collateral, use the agreement.
How to set the payment schedule
1Agree the amount and the interest rate.
2Pick a number of payments the borrower can afford.
3Calculate the monthly payment with any loan calculator.
4Write the first due date and the day of each month.
5Keep a record of every payment received.
Example: 8,000 USD at 4% a year over 24 months is about 347.40 USD a month. Write the exact figure in clause 3.
Lending to family without losing the family
Money between relatives goes wrong when nothing is written. A signed agreement turns a vague favor into clear dates and amounts. It also helps if someone else, like an heir, later asks what was owed.
Keep the tone simple. Send it as a normal step, not as a sign of distrust. Most borrowers appreciate knowing the exact terms.
Secured or unsecured
An unsecured loan relies only on the borrower’s promise. A secured loan gives the lender rights over an asset, such as a car or equipment. Perfecting that security can need a state filing or a note on a vehicle title.
If payments stop
Send a written notice that names the missed payment and the cure period from clause 6. Keep a copy. If the borrower does not pay, the full balance becomes due and you can go to small claims court for modest amounts.
A worked example
Patricia lends her brother Kevin 8,000 USD for a used work van. They agree 4% a year over 24 months, about 347.40 USD a month, starting December 1.
In month nine Kevin pays 15 days late. Clause 5 adds the late fee. In month eighteen he gets a bonus and pays off the rest early, with no penalty under clause 4.
Patricia records every payment in a simple sheet. When the loan is paid, she sends Kevin a short note confirming the balance is zero.
Proof of each payment
Ask for payments by bank transfer or another method that leaves a record. For cash, give a signed receipt every time.
A clear record protects both sides. The lender can show what is owed, and the borrower can show what was paid.
What to write in the default clause
Clause 6 gives the borrower notice and ten days to fix a missed payment. That short window is fair and courts respect it.
Only after that window can the lender ask for the full balance. Send every notice in writing, by email or letter, and keep a copy.
Before you transfer the money
Send the agreement first and wait for both signatures. Then make the transfer and keep the bank record. The signed agreement and the transfer together prove the loan.
Write the names of the lender and the borrower, the amount, the interest rate if any, the payment schedule, what happens if a payment is late, and both signatures. This template has those clauses ready, so you fill in the numbers and send it to sign.
Is a loan agreement signed online legally binding?
Yes. The ESIGN Act gives an electronic signature the same legal effect as a handwritten one. The signed PDF and its certificate show who signed the loan agreement, when and from which device.
Does the borrower need a SignSolú account to sign?
No. They open the link on their phone and sign with the brown bar at the bottom of the screen.
Can I download the loan agreement in Word?
Yes. “Download in Word” gives you the full loan agreement with no email and no account. You can print it or edit it and sign it here later.
Does a loan agreement need a notary?
No, in most cases. Loans secured by real estate follow other rules and usually need a recorded mortgage or deed of trust.
Can I lend without interest?
Yes. Choose the no-interest option in clause 2. Large family loans at no interest may have tax effects.
What proves the borrower got the money?
The bank transfer record and the borrower’s signature on clause 1. Keep both with the signed agreement.
Can the lender change the interest rate later?
Only if both sign a written amendment. The rate in clause 2 stays until then.
