A Loan Agreement is an agreement where the lender agrees to provide a loan to a borrower subject to various agreed terms. The advanced sum can either be secured by a collateral or unsecured. A loan agreement spells out the details of the transaction, including the loan amount, the security if any, the interest rate and the repayment terms.
This template is for an unsecured loan. This agreement is applicable where the lender grants a borrower a loan facility without obliging the borrower to provide a security to guarantee its performance of the terms of the agreement- most particularly the repayment of the advanced sum. The lender of a loan that is unsecured bears greater risk and must therefore compensate for this by reducing the loan amount granted or increasing the interest rate. Such a transaction is most suitable where the loan amount is relatively small or where the loan is a friendly/ soft loan and the borrower has no ready assets which can be secured.
Unsecured Loan Agreement
Up-to-date document template
Emailed to you instantly
Suitable for startups and small-to-medium businesses
Editable Word Document for you to modify
Guidance notes included
Drafted By An Advocate
Document drafted by a lawyer
Up to five business day turnaround
Complimentary consultation with a lawyer to discuss changes and answer questions