a loan agreement is used by these parties to create a clear record of the sum of money that is being lent, the terms of repayment, and any interest that is being levied on the amount. personal loan: a personal loan template allows a borrower and a lender who are family members or friends to outline the details of money being lent. after all, a loan agreement is a legally enforceable contract so it must be obvious to anyone reading it what the terms are and who the parties bound by it are. loan agreements are often the best and legally preferred way to record and enforce a loan or an exchange of money.

the borrower will be required to pay back the loan in accordance with a payment schedule (unless there is a balloon payment). depending on the loan that was selected a legal contract will need to be drafted stating the terms of the loan agreement including: depending on the amount of money that is borrowed the lender may decide to have the agreement authorized in the presence of a notary public. borrower – the individual or company receiving money from the lender which will then have to pay back the money according to the terms in the loan agreement. the lender will then give you an advance and your next paycheck will go to payoff the loan plus a big chunk of interest.