Last updated October 6, 2026 · Report an error
A loan agreement is a fuller bilateral contract between a lender and borrower, covering the principal amount, interest rate, and repayment schedule in more detail than a simple promissory note. This generator builds a complete agreement from just the loan terms, whether the loan is interest-free or bears interest, and repaid as a lump sum or in installments.
Unlike a promissory note — a simple, unilateral IOU — a loan agreement is a two-sided contract, useful when both parties want more detailed terms spelled out in writing.
How it works
Enter the lender and borrower details, the principal amount, interest rate, and loan date. Choose whether the loan is repaid as a lump sum or in monthly installments, and set a maturity date. Add optional late-payment terms. The generator builds a complete agreement and lets you download it as a PDF.
- Enter the lender and borrower details.
- Set the loan amount, interest rate, and repayment schedule.
- Generate the agreement and download the signature-ready PDF.
Examples
An interest-bearing personal loan
A lender agrees to a $10,000 loan at 5.5% annual interest, repaid in monthly installments over one year.
An interest-free family loan
A family member lends money at 0% interest, to be repaid as a single lump sum by a set maturity date.
Who should use it
- Documenting a personal loan between individuals with detailed terms.
- Creating a written record for a small business loan between private parties.
Industry applications
- Personal and family lending
- Small business financing
Advantages
- Covers interest, repayment schedule, and late-payment terms in one document.
- Works for both interest-bearing and interest-free loans.
- No account, subscription or watermark.
Limitations
- Not a substitute for legal advice on complex or high-value loans.
Common mistakes to avoid
- Setting an interest rate that exceeds the jurisdiction's legal usury limit.
- Leaving out late-payment terms, which can create ambiguity if a payment is missed.
- Not confirming the maturity date is reasonable given the repayment schedule.
Best practices
- Confirm your jurisdiction's usury limit before setting an interest rate.
- Include clear late-payment terms to avoid disputes later.
- Have both parties sign and keep a copy on file.
Tips
- Confirm your jurisdiction's usury limit before setting an interest rate.
- Keep a signed copy of the agreement and a record of all payments made.