Enter loan details
Fill in the lender and borrower names, loan amount, interest rate, repayment schedule, and term length. Add an optional late fee and your state or jurisdiction.
Free tool
Loan Agreement Generator
A loan agreement generator creates a simple, legally-worded personal loan contract between friends or family members. Enter your loan details below to generate a downloadable PDF agreement template with standard repayment, interest, and signature clauses.
Agreement details
Enter your loan information
Parties
Jurisdiction
Loan terms
Enter 0 for interest-free loans between friends
This tool generates a basic loan agreement template for informational purposes only. It does not constitute legal advice. For significant loans or complex situations, consult a licensed attorney in your jurisdiction.
How to use this tool
Generate a loan agreement in three steps
This free loan agreement generator creates a basic template suitable for personal loans between friends and family.
Preview the agreement
Review the generated loan agreement with all standard clauses including repayment terms, interest, late fees, prepayment rights, and signature lines.
Download or print
Use the download button to save the agreement as a PDF via your browser's print dialog. Both parties can then sign the printed document.
FAQ
Common loan agreement questions
Answers about personal loan agreements, contracts between friends, and what to include in a promissory note.
Is a loan agreement between friends legally binding?
Yes, a written loan agreement between friends or family can be legally binding if it contains the essential elements: identification of the parties, loan amount, repayment terms, and signatures. Having a written agreement helps protect both sides and provides documentation if a dispute arises.
Do I need to charge interest on a personal loan to a friend?
No, you are not required to charge interest on a personal loan to a friend or family member. However, the IRS requires lenders to charge at least the Applicable Federal Rate (AFR) on loans above $10,000, or the forgone interest may be treated as a gift. For smaller loans between friends, 0% interest is common and generally acceptable.
What should a personal loan agreement include?
A personal loan agreement should include the full names of the lender and borrower, the loan amount, interest rate (if any), repayment schedule, payment due dates, late fee terms, prepayment rights, governing law or jurisdiction, and signature lines for both parties. A clear written agreement helps prevent misunderstandings.
Is this loan agreement template a substitute for legal advice?
No. This tool generates a basic loan agreement template for informational purposes only. It is not legal advice. For large loans or complex situations, consult a licensed attorney in your jurisdiction to ensure the agreement meets local legal requirements and adequately protects both parties.
Can I modify the generated loan agreement?
Yes. The generated agreement is a starting template. You can print it and make handwritten additions, or copy the text into a word processor to customize clauses before both parties sign. Any modifications should be initialed by both the lender and borrower.
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