Personal Loan Agreement Template

Personal Loan Agreement

Jim Clark Co

This Personal Loan Agreement ("Agreement") is made and entered into on  (the “Effective Date”) by and between the Borrower, legal name  ("Borrower") and the Lender, legal name/company  ("Lender") (collectively, the “Parties”).

1. Loan Amount and Disbursement

The Lender agrees to loan the Borrower the principal sum of $ (the "Loan Amount"), which shall be disbursed under the following terms:

 Lump sum disbursement on 

 Installment disbursements as follows:

• Amount: $ on 
• Amount: $ on 

The Borrower acknowledges receipt of the Loan Amount and agrees to repay such amount in accordance with the terms of this Agreement.

2. Interest Rate and Finance Charges

The Loan shall bear interest at a fixed annual rate of %, resulting in an Annual Percentage Rate (APR) of %. Interest shall accrue daily and compound monthly on the unpaid balance.

Unless otherwise prohibited by law, interest will continue to accrue on any unpaid balance following default or acceleration until paid in full.

3. Repayment Terms

The Borrower agrees to repay the Loan in accordance with the following schedule:

• Payment Frequency: 
• Installment Amount: $
• First Payment Due: 
• Final Payment Due: 

All payments shall be applied first to any accrued interest, then to principal.

4. Method of Payment

Payments shall be made via:

 Bank Transfer  Check  Cash

 Automatic Withdrawal from the following account:

• Bank Name: 
• Account Number: 
• Routing Number: 
• Borrower authorizes Lender to initiate automatic debits as necessary for payment collection. Any fees associated with returned or rejected payments shall be borne by the Borrower.

5. Prepayment

Borrower may:

 Prepay this Loan in full or in part at any time without penalty.

 Prepay this Loan subject to a prepayment penalty of $ or % of the remaining balance.

Any prepayment shall be first applied to accrued interest, then to the outstanding principal balance.

6. Security for the Loan (Collateral)

 This is an unsecured loan.

 This Loan is secured by the following collateral:

• Description: 
• Location: 
• Estimated Value: $

In the event of Borrower’s default, Lender shall have the right to take possession of and dispose of the collateral in a commercially reasonable manner, as permitted by law, to recover the balance due.

7. Late Fees and Default

If any scheduled payment is more than  days late, the Borrower agrees to pay a late fee of $ or % of the overdue amount, whichever is greater. Failure to make two or more payments or any material breach of this Agreement shall constitute default. 

In the event of default, the Lender may:

• Accelerate all remaining obligations and demand immediate payment in full
• Initiate legal proceedings
• Exercise any rights with respect to collateral (if applicable)

8. Modification of Terms

No provision of this Agreement may be amended, modified, or waived except in writing signed by both parties. Oral modifications shall be invalid and unenforceable.

9. Termination

This Agreement shall terminate upon the full repayment of the Loan and any accrued interest, or earlier as mutually agreed in writing by the parties.

Lender may terminate this Agreement upon Borrower’s default by written notice, and all unpaid obligations shall become immediately due and payable.

10. Entire Agreement

This document represents the entire agreement between the parties. It supersedes all prior discussions, negotiations, or representations. No other promises, conditions, or understandings shall be binding unless stated herein.

11. Severability

If any provision of this Agreement is deemed unlawful or unenforceable, such provision shall be severed, and the remaining provisions shall remain in full force and effect.

12. Governing Law and Dispute Resolution

This Agreement shall be governed and interpreted under the laws of the State of , without regard to its conflict-of-law provisions.

Any disputes arising under this Agreement shall be resolved by:

 Mediation

 Binding Arbitration

 Civil Litigation in the courts of 

The prevailing party in any legal proceeding shall be entitled to recover reasonable attorney's fees and court costs.

13. Signatures

By signing below, the parties acknowledge that they have read, understood, and agreed to the terms of this Agreement.