Loan agreement

About this loan agreement

This lawyer drawn agreement covers many critical corners of the law relating to loan agreements. It has been drawn to protect the Lender strongly. It provides for a guarantor but the option can be deleted if not required. We strongly advise a lender to insist on a guarantor.

There is no provision for a company lender or borrower in this agreement, nor for additional security. If those are required, see the selection at Loan agreement templates.

This is a simple but flexible agreement providing all the commonly required options.

When to use this loan agreement

• The lender and the borrower are two individuals
• Suitable for personal loans to family and friends
• Either or both parties may be in New Zealand or abroad
• Flexible for loans of any size and repayment terms of any complexity

The law in this loan agreement

There is little statutory regulation relating to an agreement of this nature, so you can make more or less the deal you choose.

Alternatives to this loan agreement

Net Lawman offers a variety of documents. Choose the one which suit you best.

The documents are:

• Unsecured loan agreement: person to person; private or business
• Loan agreement: individual borrower; secured on financial assets
• Loan agreement: private borrower; secured on physical assets
• Loan agreement: company; secured by guarantee
• Loan agreement: person to person; secured by guarantee (this agreement)
• Loan agreement: company; secured on financial instruments
• Loan agreement: company borrower; secured on physical assets; guarantor option

Contents of this loan agreement

The contents of the agreement include:

• Structure of the loan;
• Alternative draw down arrangements;
• Provision of information to lender;
• Repayment and interest payment arrangements;
• Provision for default situations;
• Guarantor liability
• Borrower's warranties;
• Other important legal points.