Free Loan Agreement Template
Protect your interests and ensure clarity.
Download our comprehensive, easy-to-use template and get it signed securely online.
What is a Loan Agreement?
A loan agreement is a formal contract between a lender and a borrower that outlines the terms and conditions of a loan. Whether it's a personal loan to a friend, a business loan to a partner, or financing for a major purchase, a written agreement is crucial. It eliminates ambiguity, protects both parties' interests, and provides a clear record of the arrangement, ensuring everyone understands their obligations regarding repayment, interest, and deadlines.
Key Components of a Loan Agreement
Our comprehensive template includes all the essential clauses you need to create a robust and legally sound loan agreement.
Parties Involved
Clearly identifies the full legal names and addresses of both the Lender and the Borrower to avoid any confusion.
Principal Amount & Interest
Specifies the exact loan amount and the applicable interest rate (if any), including how it's calculated (e.g., annually).
Repayment Schedule
Details the payment plan, including the frequency (monthly, quarterly), due dates, and the final date for full repayment.
Default Clause
Outlines the consequences if the Borrower fails to make payments on time, including potential penalties or acceleration of the loan.
Governing Law
States the jurisdiction (e.g., state or country) whose laws will govern the agreement, which is critical for enforceability.
Signatures
Includes spaces for the legally binding signatures of all parties, making the document official and enforceable.
Why Use eSignly for Your Loan Agreement?
A template is just the start. eSignly provides the secure, compliant, and efficient platform to bring your agreement to life.
Ironclad Security
Protect your sensitive financial agreements with bank-grade encryption and security protocols like SOC 2 and ISO 27001 compliance.
Legally Vetted & Binding
Our template is drafted by legal professionals, and signatures made with eSignly are legally binding under the ESIGN Act and UETA.
Verifiable Audit Trail
Receive a comprehensive, court-admissible audit trail for every signed document, tracking every action from sending to completion.
Instant & Easy
Forget printing, scanning, and mailing. Send your agreement and get it signed in minutes, not days, from any device.
Completely Free to Start
Download the template and use our free plan to send and sign your loan agreement. No hidden costs or obligations.
Fully Customizable
Easily edit the template in your preferred word processor, then upload to eSignly to add signature fields and send.
How It Works in 3 Simple Steps
Go from needing an agreement to having a signed, secure document in minutes.
Download & Customize
Click the download button, open the template in your favorite editor (like Word or Google Docs), and fill in your specific loan details.
Upload to eSignly
Sign up for a free eSignly account, upload your customized agreement, and drag and drop the signature and date fields where needed.
Send & Get Signed
Enter the borrower's email and click send. They'll be notified to sign electronically on their computer or phone. You get a notification and the final document once it's done.
Types of Loan Agreements We Cover
Our versatile template is easily adaptable for various common lending scenarios.
Personal & Family Loans
Formalize loans between friends, family members, or individuals. A written agreement prevents misunderstandings and preserves relationships by setting clear expectations for repayment. It's the smart way to handle personal lending.
Business & Startup Loans
Essential for documenting loans between business partners, from investors, or for providing capital to another company. It ensures all parties agree on the terms of the financial arrangement, protecting your business's assets and future.
Simple Promissory Notes
For more straightforward situations, the template can be simplified into a promissory note—a written promise to pay a specific amount by a certain date. It's a basic but powerful tool for acknowledging a debt.
Trusted by Businesses and Individuals
See what our users say about managing their important agreements with eSignly.
"As a small business owner, I needed a quick and legally sound way to document a loan. The eSignly template was perfect, and getting it signed online took minutes. It saved me a ton of time and legal fees."
"Formalizing a loan with a client for a project advance used to be awkward. With eSignly's template, it's professional and straightforward. The audit trail gives both me and my client peace of mind."
"I handle several private loans a year. eSignly's platform lets me create a master template, customize it for each borrower, and track everything in one place. It's incredibly efficient and secure."
Success Stories
See how organizations like yours use eSignly to streamline their agreement processes.
Startup Secures Seed Funding Faster with Streamlined Loan Agreements
Client: A promising tech startup in the SaaS space.
Challenge: The startup needed to quickly finalize convertible note agreements with multiple seed investors. The process was slow, involving emails, printing, and scanning, which delayed the crucial injection of capital.
Solution: By using eSignly, they uploaded their customized loan agreement, created a reusable template, and sent it to all investors simultaneously. Investors could review and sign on any device within minutes.
Real Estate Investor Manages Private Loans Efficiently and Securely
Client: A small real estate investment firm specializing in property flipping.
Challenge: The firm frequently works with private lenders for project financing. Managing paper loan agreements was cumbersome, difficult to track, and raised security concerns.
Solution: They adopted eSignly to digitize their entire loan agreement process. They now use a standardized template, send it securely to lenders, and maintain a centralized, digital repository of all signed agreements with complete audit trails.
Freelance Agency Formalizes Client Advances, Improving Cash Flow
Client: A boutique digital marketing agency.
Challenge: The agency required project advances from new clients but relied on informal email agreements. This led to payment delays and disputes, impacting their cash flow.
Solution: They implemented a policy of using a formal loan agreement for all project advances, sent and signed via eSignly. This professionalized their onboarding process and created a clear, binding commitment from clients.
Frequently Asked Questions
Is this free loan agreement template legally binding?
The template itself is a standard legal document drafted by professionals. To make it a legally binding contract, it must be completed accurately and signed by all parties. When you use eSignly to get it signed, the resulting electronic signatures are legally binding in the United States under the federal ESIGN Act and the Uniform Electronic Transactions Act (UETA).
Can I customize the template?
Absolutely. We provide the template in a common document format (like .docx) so you can easily open it in Microsoft Word, Google Docs, or another word processor to add, remove, or modify clauses to fit your specific situation. Once customized, you can upload it to eSignly for signing.
Do I need to pay or sign up to download the template?
Downloading the template is completely free, though we may ask for your email address to send it to you. To use the template with our eSignature platform for sending and signing, you will need to sign up for an eSignly account. We offer a free plan that is perfect for handling individual agreements like this.
What's the difference between a loan agreement and a promissory note?
A loan agreement is typically more comprehensive and detailed, outlining all terms, conditions, and clauses related to the loan. A promissory note is a simpler document that is primarily a written promise to pay back a specific sum of money. Our template can be used as a full loan agreement or simplified to serve as a promissory note.
Why shouldn't I just use an informal email for a loan?
Informal agreements, like emails, often lack the specific details required for legal enforceability. They can lead to misunderstandings about repayment terms, interest, and what happens in case of a default. A formal loan agreement protects both the lender and the borrower by creating a clear, unambiguous, and legally recognized record of the transaction.
Ready to Secure Your Loan?
Stop relying on handshakes and verbal promises. Download your free, professionally drafted loan agreement template now and get the peace of mind that comes with a formal, signed contract.
Download Template Now