A personal loan agreement is a legal document that outlines the terms and conditions of a loan between a lender and borrower. It is important to have this agreement in writing to avoid any confusion or disputes later on. Here is a sample of a personal loan agreement:

Loan Agreement

This Loan Agreement (“Agreement”) is made on [insert date] between [insert lender’s name and address] (“Lender”) and [insert borrower’s name and address] (“Borrower”).

Loan Amount

Lender agrees to loan Borrower [insert loan amount] (“Loan Amount”) on the terms and conditions set forth in this Agreement.

Interest Rate

The interest rate on the Loan Amount shall be [insert interest rate] per annum, calculated on a daily basis from the date of disbursement until the date of repayment of the Loan Amount.

Repayment Schedule

Borrower shall repay the Loan Amount to Lender in [insert number of installments] equal monthly installments of [insert amount of installment], each due on the [insert day of the month] of each calendar month, commencing on [insert date of first installment] and ending on [insert date of final installment].

Prepayment

Borrower may prepay the Loan Amount, in whole or in part, at any time without penalty or premium.

Representations and Warranties

Borrower represents and warrants to Lender that:

- Borrower has the legal capacity to enter into this Agreement;

- The Loan Amount will be used only for the purpose stated in this Agreement;

- Borrower has no outstanding debt or liabilities that would affect its ability to repay the Loan Amount; and

- The information provided in the loan application is true, accurate, and complete.

Default

Borrower shall be in default under this Agreement if:

- Borrower fails to make any payment due under this Agreement within [insert number of days] days of the due date;

- Borrower breaches any other term or condition of this Agreement; or

- Any representation or warranty made by Borrower in this Agreement is false or misleading.

In the event of default, Lender shall have the right to accelerate the Loan Amount and demand immediate repayment of the entire outstanding principal and interest.

Governing Law

This Agreement shall be governed by and construed in accordance with the laws of [insert governing law], and the parties submit to the exclusive jurisdiction of the courts of [insert jurisdiction].

Entire Agreement

This Agreement constitutes the entire agreement between the parties with respect to the Loan Amount and supersedes all prior negotiations, understandings, and agreements between the parties.

Amendments

This Agreement may only be amended in writing and signed by both parties.

Warranties and Representations

All warranties and representations in this Agreement shall survive the execution and delivery of this Agreement.

In conclusion, a personal loan agreement is a crucial document that should be drafted with utmost care and attention. The above sample gives an idea of the necessary clauses that should be included in the agreement to ensure the lender and borrower are both protected. Always seek legal advice if you are unsure about the terms and conditions of the agreement.