Free Legal Documents
Free Loan Agreement
If you’re in the process of arranging a loan, it can be useful to put a loan agreement together, which outlines exactly how much the loan is for, and when it should be paid back. This type of agreement is useful if you’re organising a commercial loan, or even if money is being lent between friends and family.
The loan agreement outlines certain conditions about the borrower’s obligation to repay the loan, including any repayment schedules, interest, fees and charges, enforcement expenses and waivers.
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Our commercial lawyers act for both creditors (lender) and debtors (borrower) and can assist with any type of loan agreement. A Loan Agreement protects the interests of both parties, by clearly setting out all the terms and obligations that are being agreed to.
There are basic provisions that all loan agreements will address, including:
- Interest
And whether the interest rate is fixed or a floating rate. The default interest rate should also be addressed. This is the ability to raise the interest rate payable on amounts which have not been paid at their due date. - Repayment
Repayment should consider how the debt will be repaid, eg annual percent rate, the frequency of repayments, additional fees, a method for calculating repayments, whether interest will be charged or not, and so on. - Prepayment
Ability to let the borrower repay the loan earlier than what has been scheduled. - Default events
Any acts that will constitute default of the loan, eg insolvency, breach, types of non-payment etc. - Committed or Uncommitted
If the loan is committed, the lender is required to make the loan only once they have satisfied scheduled Conditions Precedents (CPs). - Late Fees
It should be clearly defined what constitutes a default of the loan, how late fees are determined and the penalty for them.
The OpenLegal lawyers can provide you with help on reviewing or drafting loan agreemeents for your business or startup.
Complete all the details below. Once generated, your document will be emailed directly to you.