Loan Agreement template

Free loan agreement template

A loan agreement is a legally enforceable document between a lender and a borrower that outlines the terms and conditions of a loan. Our standard loan agreement template provides a clear understanding of the repayment schedule, interest rate, loan amount, and the duration of the loan and protects both parties involved.

Whether you’re lending money to a friend as a personal loan, an auto loan or student loan, Docusign’s loan agreement template has all the key information you would expect and need to populate. The great news is our loan contract is editable online so you can digitally fill out the details, edit the document, and send it off for signatures. All you need is a free Docusign account to get started.

At the end of the day, creating a secure and legally enforceable loan agreement or promissory note doesn't have to be complicated. Our free, editable loan template allows you to quickly customize the terms, while we provide a secure platform for e-signatures and organized document storage and management. For peace of mind and accessible records on all your agreements, get started with a free Docusign account today.

What is a loan agreement?

A loan agreement is a legally enforceable contract between a borrower and a lender that outlines the terms and conditions of a loan. It defines how much money is being loaned, when and how it will be repaid, and what interest—if any—will be charged.

Whether you’re lending money to a friend or applying for a business loan, a loan agreement protects both parties by clearly documenting the expectations and responsibilities on each side. According to the Consumer Financial Protection Bureau (CFPB), a loan agreement is one of the key tools for avoiding disputes and ensuring repayment terms are clearly understood.

What is included in a loan agreement?

A loan agreement is most likely legally enforceable if it includes the following key elements: 

• Names and addresses of the parties: Clearly identify the lender and borrower.

• Loan amount: State the amount being lent.

• Repayment terms: Specify how and when the loan will be repaid, including the schedule and amounts.

• Interest rate: Indicate the rate of interest, if any, and how it is calculated.

• Signatures: Both parties must sign and date the agreement.

• Consideration: There must be an exchange of value (the loaned money).

• Governing law: Identify which jurisdiction’s laws will apply.

Additional (optional) provisions

Depending on the circumstances, additional clauses may be included but are not required such as:

• Purpose of the loan: Specify what the funds may or may not be used for.

• Security/collateral: Identify any assets pledged as security.

• Late payment fees or penalties: Outline consequences for late payments.

• Events of default: Define what constitutes a default and the lender’s remedies.

• Prepayment terms: State whether the borrower can repay early without penalty.

• Notices: Detail how official communications should be delivered.

• Assignment: Address if and how the agreement can be transferred to another party.

• Amendment and waiver: Explain how changes to the agreement must be made.

When do you need a loan agreement?

You need a loan agreement anytime money is borrowed with the expectation of repayment—especially if you want legal protection in case of a dispute. While some loans are informal, having the terms in writing helps ensure clarity and avoid misunderstandings.

Common scenarios where a loan agreement is needed include:

• Personal loans between friends or family

• Business loans from lenders or investors

• Student loans or education-related borrowing

• Real estate loans, such as for property purchases or renovations

• Vehicle or equipment financing

• Employee loans from a company to a worker

Even in cases of informal lending—such as helping a family member buy a car or pay tuition—it’s smart to document the terms. The IRS also has specific rules around below-market loans and potential tax consequences, making a formal agreement even more important when lending or borrowing large sums.

For more guidance on whether a loan agreement is necessary in your situation, the CFPB’s loan basics page offers clear explanations for various types of borrowing.