Loan Agreement Template, Free Download 2026

This Loan Agreement (the "Agreement") is entered into as of [____________] (the "Effective Date") by and between [____________] (the "Lender"), a [individual/entity organized under the laws of the State of ____________], with a principal address at [____________], and [____________] (the "Borrower"), a [individual/entity organized under the laws of the State of ____________], with a principal address at [____________]. Lender and Borrower are sometimes referred to herein individually as a "Party" and collectively as the "Parties."

WHEREAS, Borrower has requested that Lender extend credit to Borrower in the amount and on the terms set forth herein; and WHEREAS, Lender is willing to extend such credit subject to the terms and conditions contained in this Agreement; NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows.

Subject to the terms and conditions of this Agreement, Lender agrees to lend to Borrower and Borrower agrees to borrow from Lender the principal sum of [$__________] (the "Loan"). The Loan shall be disbursed to Borrower in a single advance on the Effective Date, or at such other time as mutually agreed upon by the Parties, by wire transfer or check to an account designated by Borrower. Borrower acknowledges that the Loan proceeds are intended for [____________] and shall be used solely for such purpose.

Lender's obligation to fund the Loan is subject to the satisfaction of all conditions precedent set forth herein, including but not limited to: (a) execution and delivery of this Agreement and all related loan documents; (b) accuracy of Borrower's representations and warranties as of the funding date; (c) no Event of Default or event that with the passage of time would constitute an Event of Default; and (d) delivery of any Collateral and related perfection documents required under Article V.

The Loan is a term loan and amounts repaid may not be re-borrowed. No additional advances shall be made under this Agreement unless the Parties execute a written amendment authorizing such additional advances and specifying the terms thereof. Any increase in the Loan amount shall require the written consent of both Parties and, if applicable, the grant of additional Collateral security.

The outstanding principal balance of the Loan shall bear interest at a rate of [____]% per annum (the "Interest Rate"), calculated on the basis of a 360-day year and actual days elapsed, from the date of disbursement until the Loan is repaid in full. Interest shall accrue daily and be compounded [monthly/quarterly/annually]. In no event shall the Interest Rate or any fees charged hereunder, in the aggregate, exceed the maximum rate permitted by the usury laws of the State of [____________] (the "Maximum Lawful Rate").

Upon the occurrence and during the continuance of an Event of Default, the outstanding principal and, to the extent permitted by law, all other amounts due hereunder shall bear interest at the Default Rate of [____]% per annum, or the Maximum Lawful Rate, whichever is less. If any interest or charge hereunder is determined by a court to be usurious, Lender shall apply such excess first to accrued interest, then to principal, and shall refund any remaining excess to Borrower. The Parties intend to conform strictly to applicable usury laws.

Borrower shall repay the Loan in [____] consecutive [monthly/quarterly] installments, each in the amount of [$__________], commencing on [____________] and continuing on the [____] day of each [month/quarter] thereafter, with a final payment of all remaining principal, accrued interest, and other amounts due on [____________] (the "Maturity Date"). Installment payments shall be applied first to fees and Late Charges, then to accrued interest, and then to principal reduction.

If any scheduled payment date falls on a day that is not a Business Day, such payment shall be due on the immediately following Business Day, with interest continuing to accrue for the additional days. A late charge equal to [____]% of any installment amount not received within [____] days of the due date shall be assessed (the "Late Charge"). Borrower may prepay the Loan in whole or in part at any time without penalty upon [____] days' written notice to Lender.

To secure the prompt payment and performance of all Obligations under this Agreement, Borrower hereby grants to Lender a first-priority security interest in the following property (the "Collateral"): [____________]. The security interest granted herein is governed by Article 9 of the Uniform Commercial Code as enacted in the State of [____________] ("UCC"). Borrower authorizes Lender to file UCC-1 financing statements and any amendments or continuations thereof as necessary to perfect the security interest.

Borrower shall maintain the Collateral in good condition, free from liens and encumbrances other than the lien created hereby and Permitted Liens. Borrower shall maintain insurance on the Collateral against loss or damage in amounts and with carriers satisfactory to Lender, naming Lender as loss payee. Borrower shall not sell, lease, transfer, or otherwise dispose of any Collateral without Lender's prior written consent, and shall promptly notify Lender of any event that materially diminishes the value of the Collateral.

Borrower represents and warrants to Lender as of the Effective Date and as of each date on which a payment is made hereunder: (a) Borrower has the legal capacity and authority to execute, deliver, and perform this Agreement; (b) this Agreement constitutes the legal, valid, and binding obligation of Borrower, enforceable in accordance with its terms; (c) the execution and performance of this Agreement does not conflict with any law, regulation, order, or agreement binding upon Borrower; (d) there is no pending or threatened litigation, arbitration, or governmental investigation that could materially affect Borrower's ability to perform the Obligations.

Borrower further represents and warrants: (a) all financial statements and information furnished to Lender are true, complete, and accurate in all material respects as of the date provided and fairly present Borrower's financial condition; (b) Borrower is solvent and able to pay debts as they become due; (c) Borrower has filed all required tax returns and paid all taxes due, except those being contested in good faith with adequate reserves; (d) Borrower holds all licenses, permits, and authorizations necessary to conduct its business and to own and operate the Collateral.

During the term of this Agreement, Borrower covenants and agrees to: (a) use the Loan proceeds solely for the purposes stated herein; (b) furnish to Lender annual financial statements within [____] days after the end of each fiscal year and such other financial information as Lender may reasonably request; (c) promptly notify Lender of any Event of Default or any event that with the passage of time or giving of notice, or both, would constitute an Event of Default; (d) maintain all insurance policies required by this Agreement; (e) comply with all applicable laws, regulations, and orders in the conduct of its business.

Without the prior written consent of Lender, Borrower shall not: (a) incur additional indebtedness in excess of [$__________] in the aggregate; (b) create, assume, or permit any lien or encumbrance on the Collateral other than Permitted Liens; (c) make any distribution, dividend, or payment to equity holders if an Event of Default exists or would result therefrom; (d) enter into any merger, consolidation, or sale of all or substantially all assets; (e) make any material change in the nature of its business or organizational structure.

Each of the following events shall constitute an "Event of Default": (a) failure to pay any amount due hereunder within [____] days after the date when due; (b) breach of any representation, warranty, or covenant contained herein that remains uncured for [____] days after written notice; (c) commencement of bankruptcy, insolvency, receivership, or similar proceedings by or against Borrower; (d) entry of a judgment against Borrower in excess of [$__________] that remains undischarged for [____] days; (e) any material adverse change in Borrower's financial condition; (f) any default under any other agreement between Borrower and Lender (cross-default).

Upon the occurrence of an Event of Default under clauses (a), (b), (d), (e), or (f) above, Lender may, by written notice to Borrower, declare all Obligations immediately due and payable. Upon the occurrence of an Event of Default under clause (c), all Obligations shall automatically become immediately due and payable without notice or demand. The exercise of remedies under this Article shall not limit Lender's right to pursue any other remedy available at law or in equity.

Upon the occurrence of an Event of Default, Lender shall have all rights and remedies available under this Agreement, the UCC, and applicable law, including: (a) the right to take immediate possession of the Collateral; (b) the right to sell or otherwise dispose of the Collateral at public or private sale upon [____] days' prior written notice to Borrower (or such shorter notice as permitted by law); (c) the right to apply the proceeds of any Collateral disposition to the Obligations in such order as Lender determines; (d) the right to pursue a deficiency judgment against Borrower for any amount remaining unpaid after disposition of the Collateral.

All rights and remedies of Lender under this Agreement are cumulative, may be exercised simultaneously or in any order, and shall not be deemed exclusive of any other rights or remedies available at law, in equity, or by statute. Lender's failure or delay in exercising any right shall not constitute a waiver thereof. Borrower shall be liable for all costs and expenses incurred by Lender in enforcing this Agreement, including reasonable attorneys' fees, court costs, and collection agency fees.

This Agreement shall be governed by and construed in accordance with the laws of the State of [____________], without regard to conflict of laws principles. Any dispute arising out of or relating to this Agreement shall be resolved exclusively in the state or federal courts located in [____________] County, [____________], and each Party irrevocably submits to the personal jurisdiction of such courts and waives any defense of inconvenient forum.

This Agreement, together with all exhibits, schedules, and ancillary documents referenced herein, constitutes the entire agreement between the Parties with respect to the Loan and supersedes all prior and contemporaneous agreements, negotiations, and understandings, whether oral or written. This Agreement may not be amended or modified except by a written instrument signed by both Parties. If any provision hereof is held invalid or unenforceable, the remaining provisions shall continue in full force and effect.

All notices under this Agreement shall be in writing and delivered by certified mail (return receipt requested), nationally recognized overnight courier, or personal delivery to the addresses set forth in Article I, or to such other address as a Party may designate by written notice. Notices shall be deemed received upon the earlier of actual receipt or three (3) Business Days after mailing. This Agreement may be executed in counterparts, each of which shall constitute an original, and all of which together shall constitute one and the same instrument.