Example of Loan Repayment Agreement

A loan repayment agreement is a legal document that outlines the conditions under which a borrower agrees to repay a loan to the lender. It is typically used in the context of a loan between individuals or businesses, although it can also be used in other lending situations.

One important consideration when creating a loan repayment agreement is the interest rate. This is the percentage of the loan amount that the lender will charge the borrower in exchange for the loan. Typically, the interest rate is fixed, meaning it will stay the same throughout the repayment period. However, some loans may have variable interest rates that change over time.

Another important consideration is the repayment schedule. This is the timeline for when the borrower will make payments to the lender. The repayment schedule should be clearly defined, with specific due dates and amounts. It may be structured as weekly, bi-weekly, monthly, or another frequency that works for both parties.

Other important aspects of a loan repayment agreement may include any additional fees or charges, such as late fees or prepayment penalties, and any collateral that is being used to secure the loan. Collateral can include property, such as a house or car, or other assets that the borrower pledges as security for the loan.

It is important to note that a loan repayment agreement is a legal document, and both parties should carefully review and understand the terms before signing. It is also important to make sure that the agreement complies with any applicable laws and regulations.

Here is an example of a loan repayment agreement:

Loan Repayment Agreement

This Loan Repayment Agreement (the “Agreement”) is made and entered into this _____ day of ________, 20__, by and between ____________ (the “Lender”) and ___________ (the “Borrower”).

Loan Amount: $____________

Interest Rate: _____% per annum

Repayment Schedule:

The loan will be repaid in ________ (number of) installments of $_____ each, due on the ________ (day) of each month, beginning on ___________, 20__.

Late Fees:

If any installment payment is not received by the due date, a late fee of $_____ will be assessed.


The Borrower may prepay the loan, in whole or in part, at any time without penalty.


The Borrower pledges the following collateral as security for the loan: ______________.

Governing Law:

This Agreement shall be governed by and construed in accordance with the laws of the State of _________.

In Witness Whereof, the parties have executed this Agreement as of the date first above written.

Lender: ___________________________

Borrower: _________________________