Sample of a Money Lending Agreement

A money lending agreement is a legal document that outlines the terms and conditions of a loan between a lender and a borrower. This agreement is important as it protects both parties from any misunderstandings or disputes that may arise throughout the duration of the loan.

Here is a sample money lending agreement:

Loan Agreement

This loan agreement (“Agreement”) is made and entered into this [Date] day of [Month], [Year] between [Lender’s Name], a [State] corporation, with its principal place of business at [Address] (hereinafter referred to as “Lender”), and [Borrower’s Name], an individual with an address at [Address] (hereinafter referred to as “Borrower”).

Loan Amount

Lender agrees to lend to Borrower [Amount] dollars ($[Amount]), which Borrower will repay to Lender in accordance with the terms of this Agreement.

Interest Rate

The loan shall bear interest at a rate of [Interest Rate]% per year.

Repayment Terms

Borrower agrees to repay the loan to Lender in [Number of Payments] equal consecutive payments of [Payment Amount] dollars ($[Payment Amount]).

Late Payments

In the event that Borrower fails to make a payment under this Agreement within [Days Late] days of its due date, Borrower shall be in default. In such event, Lender shall have the right to demand immediate payment of the outstanding balance.


Borrower may prepay all or any part of the loan at any time without penalty.

Governing Law

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

Entire Agreement

This Agreement represents the entire agreement between the parties and supersedes all prior negotiations, understandings, and agreements, whether written or oral. This Agreement may only be amended in writing and signed by both parties.


Borrower may not assign this Agreement without Lender’s prior written consent.

In conclusion, a money lending agreement is a crucial document that ensures the terms and conditions of the loan are clearly stated and agreed upon by both the lender and borrower. It is important for both parties to review and understand the agreement before signing it.