Documents / Financial
Loan Agreement
Lend or borrow money on clear terms — interest, repayment schedule, collateral, and what happens on default.
Create a review draft
Prepare, edit and export a review draft. Complete the listed local review and execution steps outside Quill before relying on it.
General text. One nationwide text with your state’s governing law. It does not adapt to your state’s mandatory rules, so check them before relying on it.
Version 2026-09-09.8. No qualified legal review is recorded. Read the complete document and obtain advice for your circumstances.
Review and execution steps
- Verify principal, funding date, interest calculation, complete payment schedule and final maturity.
- Review usury, lending licenses, consumer disclosures, fees, collateral perfection and guaranties for this transaction.
- Do not use this draft for a mortgage, regulated consumer loan or negotiable electronic note without specialist documentation.
Guidance updated September 8, 2026. Source coverage is limited to the topics described; historical sources are identified. State, local and transaction-specific requirements still apply.
Time
~8 min
Questions
≤ 25
Steps
6
Export
PDF · Word
Answer guided questions, review your draft, and export or request signatures on supported documents.
What we will cover
- 01
Location
Choose the actual location so the preparation guidance and applicable safeguards follow your document.
- 02
Lender & Borrower
- 03
The Loan
- 04
Repayment
- 05
Security & Legal
- 06
Loan purpose and legal review
- 07
Review and generate
Edit and export, then follow this document's review, delivery or execution steps.
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.