Loan Agreement Template | Free Word Templates

A loan agreement template is widely used document where one party is agreed to pay a specific amount as loan to the other party for a specific period of time. Usually, this agreement comes with a fixed or variable rate of markup and the other party will need to pay the markup amount with principal amount on agreed terms. The loan agreement is mostly held between two parties in which one is a lender and other is a borrower. Normally, the lender is a financial institution which is usually a bank and the borrower is the individual who is willing to accept the loan. Moreover, the total amount which is mentioned on this agreement is called loan amount, and consideration is markup amount that is charged on the loan amount. This agreement clearly defines about the repayment method which is usually in fixed installments either monthly or quarterly. The life of this agreement is also mentioned within which the borrower needs to repay the loan amount along with interest amount to the lender.

Importance of Loan Agreement:

The loan agreement serves as a protection tool which is prepared by lenders for borrowers before lending a loan amount. The terms and conditions of this agreement are clearly mentioned in it, which a borrower needs to understand before signing it. Once this agreement is signed, the borrower and the lender will need to follow it to mature the term. As far as the content of a loan agreement is concerned, it includes the following details, like the amount of loan, duration of loan agreement, names of lenders and borrowers and other payment terms of the loan. If you wish to prepare a professional loan agreement, then you can get assistance from this template which is prepared in MS Word. Moreover, you don’t need to make changes to its layout, content and format. However, if these are mandatory, then you can make these amendments according to your requirements.

Find below the download button to download these free loan agreement templates with a picture preview.