Documents / Financial
Loan Agreement
Lend or borrow money on clear terms — interest, repayment schedule, collateral, and what happens on default.
Time
~8 min
Questions
20
Steps
4
Export
PDF · Word
You will answer guided questions with a live preview, then export, share, or send for e-signature. Free during launch.
What we will cover
- 01
Lender & Borrower
- 02
The Loan
- 03
Repayment
- 04
Security & Legal
- 05
Review and generate
AI review, edits, export, and e-signature.
About this document
Lending money — especially to family or friends — without a written agreement is how relationships and repayment both fall apart. A loan agreement fixes the amount, interest, schedule, and what happens on default, and it's also what proves to the IRS that the money was a loan rather than a taxable gift.
Interest is regulated: every state has usury limits, and family loans above the annual gift-tax exclusion should charge at least the IRS Applicable Federal Rate (AFR) to avoid imputed-interest problems. Zero-interest is fine for small personal loans; Quill supports both and includes default, acceleration, and optional collateral terms.
Common questions
Loan agreement or promissory note — which do I need?+
A promissory note is a simpler one-way promise to pay, signed only by the borrower — fine for straightforward personal loans. A loan agreement is signed by both parties and adds protections like collateral, co-signers, and detailed default terms. When in doubt, the loan agreement is the safer choice.
How much interest can I charge?+
Each state caps interest on private loans — commonly in the 6–12% range, with exceptions. Charging above the cap can make the interest (or the whole loan) unenforceable. Quill flags this during the interview.
Is a signed loan agreement enforceable in court?+
Yes. A written, signed agreement showing the amount, the promise to repay, and the terms is exactly the evidence a small-claims or civil court looks for.
General information, not legal advice — laws vary by state and change over time.