LOAN AGREEMENT

USER DISCLAIMER (please delete): Note that the legality and enforceability of loan agreements vary from state to state and country to country. This loan agreement template gives you a good starting point, but you should have a legal professional read it over to make sure it will be enforceable in your state or country.

LENDING TERMS

LOAN AMOUNT AND INTEREST RATE

The Lender agrees to lend the principal amount of $10,000 (the “Loan Amount”) to the Borrower. The Borrower promises to repay the Loan Amount to the Lender with interest at an annual rate of <interest rate> percent calculated monthly on the outstanding Loan Amount, beginning on <date of agreement signed>.

PAYMENT SCHEDULE

This Loan will be repaid in consecutive monthly installments of principal and interest beginning on <date of first payment due>, with subsequent payments due on the same day of each following month.

If a due date falls on a weekend or holiday, the payment is considered due on the next business day.

Should the Borrower fail to make a payment within <grace period> days of the due date, the Borrower will be responsible for paying a late fee in the amount of $<late fee amount>.

The Borrower may make lump sum payments or pay the outstanding balance owed under this Agreement at any time without further bonus or penalty.

PAYMENT APPLICATIONS

All payments received will be applied first to any outstanding late fees and expenses incurred by the Borrower, then the interest, and the remainder to the outstanding principal balance.

DEFAULT

If the Borrower defaults in the performance of any obligation under this Agreement, then the Lender may:

• Declare the entire Loan Amount and the interest accrued at the time of default immediately due and payable
• Pursue legal remedies, including, but not limited to filing a lawsuit to recover the outstanding Loan Amount and accrued interest due

If the Lender declares the Loan Amount and accrued interest due under this Agreement immediately due and payable and the Borrower fails to provide full payment in <number> days, the Borrower will be charged a $<amount> late fee.

COSTS

The Borrower will be liable for all costs and expenses incurred by the Lender in enforcing this Agreement as a result of any default by the Borrower. Such costs will be added to the outstanding Loan Amount and will be considered due and payable by the Borrower to the Lender immediately upon demand by the Lender.

FINAL PROVISIONS

AMENDMENTS

This Agreement may only be amended or modified in writing by both the Borrower and the Lender.

SEVERABILITY

The clauses and paragraphs contained in this Agreement are intended to be read and interpreted independently of each other. If any term, condition, or provision of this Agreement is held to be invalid, void, or unenforceable by a court competent jurisdiction, it is the Parties’ intent for such a provision to be reduced in scope only to the extent deemed necessary by the court to render it reasonable and enforceable. The rest of the provisions of this Agreement will in no way be affected or invalidated as a result.

GOVERNING LAW

This Loan Agreement is governed by the <jurisdiction> law. Any dispute, controversy, or claim arising out of or related to this Agreement, including breach, termination, or invalidity, will be subject to the non-exclusive jurisdiction of the courts located in <city, country>.By signing this Agreement, the Parties submit to the jurisdiction of said courts and agree to waive any objections to venue or jurisdiction.

GENERAL PROVISIONS

Headings are inserted for the convenience of the Parties only and are not to be considered when interpreting this Agreement. Words in the singular mean and include the plural and vice versa. Words in the masculine mean and include the feminine and vice versa.

ENTIRE AGREEMENT

This Agreement constitutes the entire agreement between the Parties and there are no other items or provisions, either oral or otherwise.