Loan Agreement (Private or Business, Unregulated) — 2026 template

Regulatory note: if the lender lends by way of business to an individual, sole trader or small partnership, the loan is likely to be a regulated credit agreement, which requires FCA authorisation and Consumer Credit Act 1974 documentation — do not use this template. It is intended for one-off loans between family or friends, or between businesses (including director's loans to a company).

This Agreement is dated [Date] and made between [Lender full name / company name and number], of [Lender address] (the "Lender"), and [Borrower full name / company name and number], of [Borrower address] (the "Borrower").

1. The Loan

The Lender agrees to lend the Borrower £[Loan amount] (the "Loan") for the purpose of [Purpose]. The Loan will be paid to the Borrower's account [Bank account details] on [Drawdown date].

2. Interest

(Choose: The Loan bears no interest / Interest accrues on the outstanding balance at [Interest rate]% per year, calculated daily on a 365-day basis, and is payable [monthly / with each instalment / on the repayment date]).

3. Repayment

The Borrower will repay the Loan (in full on [Repayment date] / by [Number] [monthly] instalments of £[Instalment amount], the first on [First instalment date]), to the Lender's account [Lender bank details]. The Borrower may repay all or part of the Loan early at any time without penalty; early repayments are applied first to accrued interest.

4. Default