If you lend money to anyone it is important to have evidence of the loan and its terms. By having a Loan Agreement that clearly sets out the basis upon which money has been lent, it becomes easier to enforce the terms of the loan and easier to show that it was in fact a loan and not a gift.
LawLive’s Loan Agreement Templates provide options as to whether interest is payable or not, and whether the loan is repayable by instalments. If the loan is to carry interest then the interest will be inserted. If the loan is to be repaid on a fixed date or on the happening of an event then that date or will be inserted.
These Loan Agreement Templates also provides an option to include a guarantor. A guarantor is a person who promises to pay and meet all the obligations of the borrower if the borrower fails to pay or meet those obligations.
LawLive recommends that you always ask for a guarantee from a second person, usually a relative or close friend of the borrower. It is good practice to check before you agree to lend the money that the guarantor and the borrower both have sufficient assets to enable them to repay you.
Unsecured Loan Agreement Templates
Unsecured means exactly that, there is no security against the loan should the Borrower default. You can include a Guarantor which is a great way to protect the Lender, however if the borrower does not pay you back you may have to take legal proceedings to recover your loan.
Secured Loan Agreement Templates
A secured loan is a great way for a Lender to be confident in the recovery of monies which they have lent to a Borrower. Having a Borrower provide security for a loan also encourages the Borrower to keep on top of payments and to take the loan seriously.
Division 7A Loan Agreement Template
The Division 7A Loan Agreement Template is to be used where a company is lending to a single borrower who is a natural person and that person is a director, shareholder or associate of a director or shareholder of the Lender company.
It is for the purposes of complying with Section 109N of the Income Tax Assessment Act 1936 (Cth) which sets out strict provisions relating to such loans. Our LAWLIVE® document is drafted to ensure compliance with the relevant provisions so that the loan may not be deemed to be a dividend and any amendment made to this document may mean that the loan is deemed to be a dividend.
Select a Loan Agreement Template to continue;