Loan Agreement Template

A promissory note is a short promise to repay. A loan agreement is more detailed, with obligations on both sides — conditions to funding, representations, covenants, collateral, and default remedies. Larger or secured loans usually call for a full agreement.

• Principal amount and the date funds are delivered
• Interest rate, and whether it is simple or compound
• Payment schedule — installments, lump sum, or interest-only
• Late fees and a grace period
• Collateral, if the loan is secured
• Events of default and the lender's remedies
• Prepayment rights

Every state caps interest through usury laws, and exceeding the cap can void interest entirely. For family loans, the IRS expects at least the Applicable Federal Rate on loans over $10,000; charging less can create imputed interest and gift tax consequences.

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Easy Legal AI is not a law firm and does not provide legal advice or attorney representation. This page and the documents it creates are self-help tools. Laws differ by state and change over time — for a high-value dispute or an unusual situation, have a licensed attorney in your state review the document before you rely on it.