(England & Wales)
Professional loan agreement covering principal amount, interest calculations, repayment schedules, default provisions, and security arrangements — document personal loans, family loans, or director's loans with clear terms for repayment and interest.
Professionally drafted — structured following UK contract law for England and Wales.
Download a professionally drafted Loan Agreement template for UK individuals and businesses. Also known as Personal Loan Agreement, Business Loan Agreement, Promissory Note. Covers loan amount, interest, repayment schedule, security, and default provisions. Structured following UK lending law for England and Wales.
Whether you prefer step-by-step guidance or a traditional form, both methods produce the identical professionally-formatted loan agreement. Choose the style that suits you.
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♻️ Unlimited use — generate agreements for every loan arrangement you need
Essential for anyone lending or borrowing money — protects both parties with clear, documented terms.
Clear documentation that protects lenders and gives borrowers certainty
Court format documentation that proves the loan existed, the amount, and agreed terms.
Defined repayment schedule — lump sum, instalments, or on-demand — no ambiguity.
Clear terms from the start help avoid misunderstandings that damage relationships.
A UK loan agreement should specify the principal amount, interest rate, repayment schedule, security arrangements, default triggers, early repayment terms, and guarantor provisions — without these, recovering the loan through court becomes significantly harder.
A comprehensive loan agreement should cover all aspects of the lending arrangement:
Our template covers all essential elements with clear explanations.
Without a written loan agreement, lenders struggle to prove the amount lent, agreed interest rate, repayment terms, and what constitutes default — verbal loan arrangements frequently lead to relationship breakdowns and unenforceable claims.
This loan agreement template covers loan amount, drawdown conditions, interest calculations, repayment schedules, security provisions, guarantor obligations, default events, acceleration clauses, early repayment, and enforcement procedures.
Related documents: Businesses may also need Debt Recovery Letters and Invoice Terms.
Common loan agreement mistakes include failing to specify whether interest is simple or compound, omitting default event definitions, no acceleration clause, missing guarantor provisions, and using consumer credit terms for business loans or vice versa.
Our template helps you avoid these common pitfalls.
A Loan Agreement is a written contract between a lender and borrower that documents the terms of a loan — the amount borrowed, interest rate (if any), repayment schedule, and what happens if payments are missed.
It creates a clear record that protects both parties and can be enforced in court if necessary.
While not legally required, written agreements are strongly recommended for family loans.
Without documentation, borrowers may claim the money was a gift, courts struggle to determine terms, and family relationships can be damaged by misunderstandings.
A written agreement protects the relationship by setting clear expectations from the start.
Yes, you can charge interest on personal loans without being FCA regulated, provided you're not lending as a business (i.e., not regularly lending to multiple people for profit).
Interest should be reasonable — excessive rates could be challenged as unfair. Many family/friend loans are interest-free, but you can charge interest to cover inflation or opportunity cost.
Text messages and emails can provide some evidence, but they're problematic:
• Often incomplete or ambiguous
• Difficult to prove authenticity
• May not cover all necessary terms
• Courts prefer formal documentation
A proper written agreement signed by both parties is far more reliable and enforceable.
With a written agreement, you can:
• Send formal demand letters referencing the agreement
• Charge any agreed late payment fees or interest
• Take the matter to County Court (Money Claim Online for debts up to £100,000)
• Enforce any security if the loan was secured
Without written terms, enforcement becomes much harder.
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