Loan Transaction Forms

Before you lend money, secure the loan and make sure you get repaid with these loan agreements and supporting documents.

  • Download the templates, fill them in and have them signed before you advance the loan funds.
  • Some forms are country-specific and comply with applicable national, state and provincial legislation. Other forms are generic and can be used in most jurisdictions.
  • If you're lending money to a small business, it is also advisable to obtain Personal Guarantees from the business owners.
  • Also check out our selection of Promissory Notes.

Quite often people who cannot get a loan from the usual sources (such as a bank) turn to family members or close friends to help them out. And you will probably feel a personal obligation to help out. If you offer to draw up a loan agreement or a promissory note, the borrower may feel offended that you don't trust them, that their word isn't good enough for you. This then adds a good measure of guilt to the feeling of obligation. Do not let your personal feelings sway your judgment. There's a reason why a bank won't lend them the money, and for that same reason you shouldn't lend them the money either - unless they agree to put it in writing.

Set the interest rate at a reasonable level. Check with your bank to see what its prime lending rate is, and add another percentage point. That's as good a rate as the borrower could expect to get on a line of credit. Make sure the regular payments are high enough to pay off the debt within a reasonable time period, but not so high as to be difficult to maintain. And get some collateral security, such as a mortgage, or a pledge of vehicles or other assets which can be sold if the borrower defaults.

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