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Personal Loan Agreement Template

A personal loan agreement for lending between friends or family — the loan amount, optional interest, a plain repayment schedule, and the one clause this kind of loan needs most: both sides stating, in writing, that it is a loan and not a gift. Download the ready-to-fill template below, or read the field-by-field checklist first.

Download the Personal Loan Agreement

A complete, ready-to-fill PDF — 9 clauses, blanks for every detail, and a signature block for both parties. Free, no email, no account. Read it and adapt it before you use it; the cover page explains what it can and cannot do for you.

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Need the other party to sign it too? Send it for signature with a full audit trail and a tamper-evident seal on the finished file — they never need an account. See pricing.

This is a template, not legal advice

This document is a general-purpose template provided for information only. It is not legal advice, it does not create a lawyer–client relationship, and nobody has reviewed it against your situation.

Laws differ by country, state and province, and they change. A clause that is standard in one place can be unenforceable — or illegal — in another. Terms that are ordinary between two businesses can be void in a consumer or employment context.

Read every clause before you use it, fill in every blank, and delete anything that does not apply. For anything high-value, unusual, or that you could not afford to lose a dispute over, have a qualified lawyer in your jurisdiction review it before it is signed.

What to include in a personal loan agreement

These are the fields and clauses a friends-and-family loan agreement needs. Leaving one out doesn’t necessarily void the agreement, but each gap is a spot where you and the other party can end up remembering the deal differently.

  • Lender & borrower names and addresses

    Full legal names and addresses for both people — the same names both sign under below.

  • Loan amount & disbursement

    The exact amount, when it changes hands, and how — bank transfer, check, or cash.

  • Non-gift acknowledgement

    Both parties state, in writing, that this is a loan and not a gift — the clause a friends-and-family loan disputes most often, and the whole point of writing this down.

  • Interest (or interest-free)

    A rate if you want one, or "0%" if you don't — stated explicitly either way, so it never looks like interest was simply forgotten.

  • Repayment schedule

    A single payoff date, or a set of instalments with a first due date — a plain "whenever you can" is not a schedule.

  • What happens on a missed payment

    A grace period, a notice-and-cure window, and what happens if the balance still isn't paid — decided now, not improvised mid-dispute.

  • Signatures & date

    Both lender and borrower sign and date it. Unlike a one-sided promissory note, this is a two-way agreement — it isn't binding until both have signed.

Why a loan between friends or family still needs to be in writing

A loan between people who trust each other feels like it shouldn’t need paperwork — that’s often the whole point of lending to a friend or a family member instead of a bank. But the trust is exactly why it needs writing down: there is no institution tracking the balance, sending statements, or remembering the terms the way a bank would. If the two people involved remember the deal differently — was it $3,000 or $3,500? was repayment due this year or “eventually”? — there is nothing to check against.

The sharpest version of that ambiguity is the question this template answers directly: was the money a loan, or was it a gift? Without a written answer, that question tends to resurface at the worst possible time — during a divorce or estate settlement, when someone else’s money is now involved, or if a tax authority asks why a large transfer between two people was never declared as a gift. The non-gift acknowledgement in this template has both people confirm, at the time the money changes hands, that it was a loan and that the borrower is obligated to repay it — removing the ambiguity before it has a chance to matter.

Writing it down also protects the relationship itself, not just the money. A written repayment schedule and a defined process for a missed payment mean that if things go off track, both people are working from terms they already agreed to — not improvising an uncomfortable conversation from scratch, with the friendship or family tie itself absorbing the tension a plain, agreed process would have handled instead.

Common mistakes to avoid

  • No written agreement at all. A bank transfer memo that says "loan" is not the same as a signed agreement — if the relationship or a tax authority ever asks whether the money was a loan or a gift, a memo line is a weak answer.
  • Leaving out the non-gift acknowledgement. This is exactly the question that comes up later — during a divorce, an estate settlement, or a tax review — and by then neither party can go back and add the answer. Put it in writing at the time the money changes hands, not after.
  • No fixed repayment date or schedule. "Whenever you can" is not a term. Without a due date, a missed payment has no clear meaning, and an informal loan can quietly turn into permanent goodwill instead of debt anyone is tracking.
  • Assuming interest-free means no paperwork is needed. Interest is optional — documentation isn't. And for larger sums, some tax rules impute interest on a below-market loan even if none is actually charged, which is a reason to check with a tax preparer rather than assume "we didn't charge interest" ends the question.
  • Letting a missed payment go unaddressed to avoid an awkward conversation. Silence doesn't protect the relationship. An ambiguous default with no agreed process is far more likely to damage it than a plain conversation backed by terms both people already agreed to in writing.

Get your loan agreement signed

Fill in the template above and send it to the other party for signature with a free Evenseal account — 3 documents a month, no card required. Only need your own copy signed? Self-sign for free with no account at /sign-pdf.

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Not legal advice — for larger loans, or if tax or estate questions apply, have a local attorney or tax preparer review your agreement before relying on this template alone.

Frequently asked questions

Is this a loan or a gift?+
That is exactly the question this template is written to answer in advance. If money changes hands with no expectation of repayment, it is a gift. If the recipient is expected to pay it back, it is a loan — but between friends or family, that distinction is often understood verbally and never written down, which is precisely what causes disputes later. This template has both parties explicitly acknowledge, in writing and at the time the money changes hands, that it is a loan and not a gift.
Do I need to charge interest?+
No. Many friends-and-family loans are interest-free, and this template supports that — fill in "0%" for the interest rate rather than leaving it blank, so it's clear the omission was intentional. One thing worth knowing: for larger loans, some countries' tax rules can treat a significant interest-free or below-market loan as if it carried a minimum ("imputed") rate of interest for tax purposes, even though none was actually paid. If the amount is substantial, it's worth a quick check with a tax preparer rather than assuming zero interest has no tax angle at all.
What happens if the borrower can't repay on time?+
The template's late-payment clause sets a grace period after a missed due date, then a written notice with a further period to bring the loan current, before the lender can treat the full remaining balance as due. That gives both sides a defined process instead of an awkward, undefined standoff. It is a general-purpose default clause, not collections advice — if a loan is genuinely at risk of non-repayment, that is a conversation (or a lawyer) beyond what a template can resolve for you.
Do both people need to sign, or just the borrower?+
Both. This is a bilateral agreement — lender and borrower are each agreeing to something (the lender to provide the funds and the terms, the borrower to repay them) — so both sign. If you only need the borrower to acknowledge a debt and promise to pay it, without the lender countersigning, a promissory note is the narrower document for that. Promissory Note Template.
Is an e-signed personal loan agreement legally binding?+
Generally, yes — in most US states and many other countries, a contract signed electronically carries the same legal weight as one signed on paper, under laws like the US ESIGN Act and UETA. A small number of jurisdictions and document types still expect a wet-ink or notarized signature, so check your local rules if the loan amount is large or you're unsure. Are electronic signatures legally binding?.
Can I send this to the other party to sign online?+
Yes. Download the template above, fill in the blanks, then send it for signature with a free Evenseal account — no card required. If you only need your own copy signed, you can self-sign for free with no account at all. Create a free account.

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