39 Free Templates For Loan Agreement

Tips For Using Loan Agreement Templates

• 1. Clarify Loan Details Ensure the loan amount, payment schedule, interest rates, and total repayments are explicitly defined to avoid future disputes. Precise terms protect both lender and borrower.
• 2. Define Default Consequences Describe the penalties for late payments or non-repayment. This includes financial penalties, collateral claims, or legal actions, providing clarity on the repercussions of defaulting on the loan.
• 3. State Governing Law Include which state or country’s laws will govern the agreement. This is crucial if the parties are in different jurisdictions, as it determines how conflicts are resolved.