PERSONAL LOAN AGREEMENT
This Agreement is made on [loanDate] between:
(1) [lenderName] of [lenderAddress] (the "Lender"); and
(2) [borrowerName] of [borrowerAddress] (the "Borrower").
1. The Loan
1.1. The Lender will lend the Borrower the sum of [loanAmount] (the "Loan").
1.2. The Loan is being made for the following purpose: [loanPurpose].
1.3. The Loan will be advanced on [loanDate] by bank transfer to a bank account nominated by the Borrower, or such other method as the parties agree.
2. Interest
2.1. Interest will accrue on the outstanding balance at 0% per annum, calculated on a simple basis.
2.2. If the interest rate is 0%, this Loan is interest-free.
2.3. Interest will accrue from the date the Loan is advanced until the Loan is repaid in full.
3. Repayment
3.1. The Borrower shall repay the Loan by monthly-instalments.
3.2. Where repayment is by monthly instalments, the Borrower shall pay [monthlyAmount] on the same day of each month, until the Loan and any interest is repaid in full.
3.3. The Loan shall be repaid in full no later than [finalRepaymentDate].
3.4. Repayments shall be made by bank transfer to an account nominated by the Lender.
4. Early Repayment
4.1. allowed-no-penalty.
4.2. Where early repayment is allowed without penalty, the Borrower may at any time pay all or part of the outstanding balance without additional charges.
5. Default
5.1. The Borrower will be in default if:
(a) the Borrower fails to pay any instalment within 14 days of the due date;
(b) the Borrower becomes bankrupt or makes a voluntary arrangement with creditors;
(c) any information provided to obtain the Loan is materially false.
5.2. On default:
(a) the entire outstanding balance becomes immediately due and payable;
(b) the Lender may take steps to recover the debt, including issuing a claim in the County Court (Money Claim Online for amounts up to £100,000); and
(c) the Borrower will be liable for the Lender's reasonable costs of recovery (court fees, reasonable legal costs, and any debt collection charges).
6. No Security
6.1. This Loan is unsecured. No charge is being granted over any property of the Borrower.
7. Variation and Forbearance
7.1. Any variation must be in writing and signed by both parties.
7.2. Any failure or delay by the Lender to enforce a term is not a waiver of that term.
8. Governing Law and Jurisdiction
8.1. This Agreement is governed by the law of England and Wales. The courts of England and Wales have exclusive jurisdiction.
9. Acknowledgement
9.1. The Borrower confirms understanding of the obligation to repay this Loan in full, including any interest, by the agreed date(s).
9.2. The parties confirm that this Loan is a one-off, non-commercial arrangement and is not a regulated consumer credit agreement.
Signed by the Lender:
Name: [lenderName]
Signature: _________________________
Date: ____________________________
Signed by the Borrower:
Name: [borrowerName]
Signature: _________________________
Date: ____________________________
Witness (recommended for amounts over £500):
Name: ____________________________
Signature: _________________________
Date: ____________________________
This template is provided by UKContracts.uk as a starting point only. UKContracts AI Ltd is not a law firm. If the Lender regularly lends with interest, FCA authorisation may be required.