Published November 6, 2025

Loan Agreement PDF — Free Template (Private, No Upload)

A written loan agreement protects both lender and borrower when money changes hands. With CourtPDF’s Loan Agreement generator, you can document principal, APR, payment schedule, and signatures in minutes—everything renders locally so no financial data leaves your browser.

When to use a loan agreement

Even small personal loans benefit from clear documentation. Use an agreement when you want to:

• Loan money to a friend or family member and spell out how payments work.
• Record a business loan between partners or LLC members.
• Document seller financing for a vehicle or equipment sale.
• Refinance an existing balance and reset the repayment schedule.

If you’re managing ongoing repayments, pair this agreement with the Repayment Agreement generator for amortized payment tracking or log installments in our Payment Plan Agreement template.

What to include

A strong loan agreement covers the basics plus a few protective clauses:

• Full names of the lender and borrower, plus contact details if you plan to mail notices.
• Principal amount, disbursement date, and whether any collateral secures the loan.
• Interest rate (if any) and how it’s applied—simple APR versus compounding.
• Payment schedule, including start date, frequency, and maturity date.
• Late fee policy and what counts as default.
• Governing law and where disputes will be resolved.

CourtPDF’s PDF builder prompts for each of these items and places them in a clean layout so you don’t miss a required term.

Interest & APR basics

APR (annual percentage rate) expresses the yearly cost of borrowing. For simple personal loans, you typically apply the APR to the outstanding balance and divide the result across payments. Two quick tips:

1. Verify your state’s usury limits—many cap interest for personal loans.
2. If you want a 0% loan, enter 0 in the interest field and note that the loan is interest-free.

Our generator includes an interest explanation and reminds both parties to apply payments first to interest and then to principal unless they agree otherwise.

Payment schedules

Choose a cadence that fits the borrower’s cash flow:

• Monthly: Common for personal loans and vehicle financing.
• Biweekly: Helpful when paychecks arrive every other week.
• Weekly: Great for small business cash advances or gig work loans.
• Lump sum: Use when the borrower will repay everything on a specific date.

If you need to record payments as they come in, theInvoice Payment Receipt PDF guide shows how to acknowledge each installment with a signature.

Late fees & enforcement

A late fee clause motivates timely payments. Many lenders choose a flat dollar amount after a short grace period (for example, $25 after seven days). State law may set limits, so confirm caps before finalizing the PDF. Also spell out what constitutes default—multiple missed payments, bankruptcy, or misrepresentation.

FAQs

Is a handwritten signature required?

Electronic signatures are generally enforceable for personal loans, but check your jurisdiction. If either party prefers pen-and-ink, print and sign the PDF by hand.

Does the agreement need to be notarized?

Not typically, but notarization can help if you expect to record the document or anticipate disputes. Pair it with our Notarization Cover Sheet if you plan to visit a notary.

Which governing law should I choose?

Usually the state where the borrower lives or where the loan is issued. Match the jurisdiction that would hear a dispute, and keep copies of the agreement in that state’s preferred format.

CourtPDF Standard — Informational only, not legal advice.