This Simple Loan Agreement template is suitable for uncomplicated circumstances where a loan is typically being made to an individual by another individual, although it may also be used for a loan to a business by another business or individual.
Applying interest to the loan is optional so suitable for 0% interest rate loans. If interest is to be charged, it is calculated at a monthly rate of one twelfth of a nominated annual rate.
There are no provisions allowing an increase or decrease in payments in accordance with an increase or decrease in a published annual base rate. Repayment of the loan may be either on a monthly basis or on demand.
This agreement is suitable for use in England, Scotland and Wales. It includes relevant clauses and allows inclusion of details:
- amount of loan
- period of loan
- interest rate
- monthly repayments.