Loan Agreement

• Both parties must sign for the agreement to be legally binding.
• If interest is charged, ensure the rate complies with local usury or consumer credit laws - excessive interest rates may be void or subject to reduction by a court.
• In many jurisdictions, lending money as a business activity requires a licence or regulatory authorisation - this template is for private/personal lending only.
• Keep clear records of when funds were transferred and any repayments made.
• If a personal guarantee is required, it should be documented separately in a Guarantee Deed, often witnessed or notarised.
• Tax treatment of interest income and deductibility of interest payments varies by country - seek independent tax advice.
• If the borrower defaults, enforcement procedures vary by jurisdiction - legal advice should be sought before taking any recovery action.
• Consumer lending laws (e.g. FCA Consumer Credit Act in the UK) may impose additional obligations if lending to individuals.

This is public legal information, not legal advice. Rules vary by jurisdiction - always verify requirements in your country. For complex situations, consult a qualified solicitor.