Business contractsAgreement
Loan agreement template
Put a loan between people or businesses on a clear footing: how much, at what interest, repaid when, what happens if a payment is late, and what counts as default. Both sides sign online.
Opens in the Salsox editor with 7 signing fields already placed for Lender and Borrower. Add their emails and send. The free plan sends 3 documents a month.
Who signs
- Lender (you)
- Borrower
Preview
Loan Agreement
This agreement is made on 24 October 2026 between:
Lender: Northgate Capital Partners LLC, of 88 Harbor Street, Boston, MA 02110, USA Borrower: Brightside Bakery Ltd, of 14 Elm Road, Leeds LS6 2AB, United Kingdom
1. The loan
The lender agrees to lend the borrower USD 25,000 (the "Loan") for buying a second commercial oven and refitting the bakery's kitchen. The lender will pay the Loan to the borrower within five business days of this agreement being signed by both parties.
2. Interest
Interest is charged at 6% a year, simple interest, calculated on the outstanding balance. No other charges apply except those set out in this agreement.
3. Repayment
The borrower will repay the Loan with interest in 24 equal monthly instalments of USD 1,108.05, due on the 1st of each month from 1 December 2026, by bank transfer to the account the lender names in writing. Each payment is applied first to any late fees, then to interest, then to the amount borrowed.
4. Early repayment
The borrower may repay all or part of the Loan early at any time without penalty. Interest stops on any amount repaid early.
5. Late payment
If an instalment is not paid when due, the borrower will pay a late fee of USD 50 for each instalment paid more than 10 days late. The late fee does not replace the borrower's duty to pay the instalment.
6. Default
The borrower is in default if an instalment remains unpaid 15 days after its due date, if the borrower becomes insolvent, or if anything the borrower stated to obtain the Loan was materially untrue. On default, the lender may give written notice that the whole outstanding balance, with interest to the date of payment, is due immediately, and may recover it together with reasonable costs of collection.
7. Security
Security for the Loan: none; this is an unsecured loan.
8. General
This agreement is the whole agreement about the Loan and can only be changed in writing signed by both parties. If any part is found unenforceable, the rest remains in effect. Notices must be in writing and sent to the addresses above or to an email address a party gives for that purpose. This agreement is governed by the law of the Commonwealth of Massachusetts, USA.
Borrower initials: Initials · Borrower
Signatures
Lender: Signature · Lender Date: Date · Lender Name: Name · Lender
Borrower: Signature · Borrower Date: Date · Borrower Name: Name · Borrower
These templates are general starting points, not legal advice. Laws differ between countries and states: check that a template suits your situation, or ask a lawyer, before you rely on it.
About the Loan agreement template
Lending money to a friend, a family member or another business goes wrong most often because nobody wrote down the terms. A loan agreement records the amount, the interest, when each payment is due and what happens if payments stop, so both sides can point to the same page later.
This template works for a simple personal or business loan with a fixed repayment schedule. It covers early repayment without penalty, a late fee, a grace period before default, and what the lender may do after default. If the loan is secured against property, a vehicle or equipment, describe the security and consider a separate security agreement or registration, which the law of most countries requires before a lender can rely on it against others.
Interest rates are capped in many places, and lending as a business can need a licence. Check both before using this template for anything other than a one-off loan. With Salsox, the borrower can sign from their phone and both of you keep the same signed copy.
- Signers
- 2
- Signing fields placed
- 7
- Details to fill in
- 14
How to use this template
Open it in Salsox
Choose Use this template. Sign up free if you have no account; the template opens straight after.
Fill in the details
Type your details into each blank, or start from the sample to see how it reads. Save it as your own template to reuse it.
Add signers and send
The editor already has every signature, date and initials field in place. Add each signer's email and send; they sign on their phone, and everyone gets the sealed copy with its audit trail.
Used in
Questions
Is a loan agreement legally binding?
Yes, when both parties sign it and the terms are lawful. A written agreement is far easier to enforce than a verbal one, because it proves the amount and the repayment terms.
What is the difference between a loan agreement and a promissory note?
A promissory note is a short promise by the borrower to repay. A loan agreement is signed by both sides and sets obligations for each, including default and the lender's remedies. Larger or business loans usually use an agreement.
Can I charge any interest rate I like?
No. Many countries and states cap interest rates, and charging more can make the interest, or the whole loan, unenforceable. Check the limit where the borrower lives.
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Send it for signature in minutes
Start from this template in Salsox: fill in the blanks, add your signers and send by email, WhatsApp or SMS. Signers sign one field at a time on their phone, and you can collect a payment in the same step.