How to write a loan agreement between individuals: what to include

What to include

Include: (1) the date and amount of the loan, (2) that the borrower received it, (3) the due date (for installments, the date and amount of each one), (4) how it will be repaid (such as the account to transfer to), (5) whether interest applies, (6) what happens if payment is late, and (7) each party’s name, address and signature.

Write the amount as an exact figure with its currency, and fix the deadline as a calendar date, such as “by December 25, 2026”.

Interest: check the limit where you live

Many countries limit the interest that can be charged on a loan, including loans between individuals, and the limits differ from country to country. Interest above the limit may not be enforceable.

Extra charges for late payment can be limited as well. If you are not charging interest, say so plainly, for example “No interest accrues.”

For installments, say what happens after a missed payment

Installment agreements commonly include a clause that the full remaining balance becomes due if even one payment is missed (an acceleration clause). Without it, the borrower may argue that you can only claim the missed installment.

Watch the time limit

The right to claim repayment usually expires after a period set by law, and that period varies by country. Writing a clear due date also makes it clear when that period starts.

Keep it in a form you can trace

Even with a signed agreement, asking for repayment is hard if you lose track of the other person’s real name and contact details. Have the address written in the signature block, and keep a record of identity verification.

Twosure’s “Lending money” template lets you fill in these items through its ◯ blanks, and an address is required at signing for loans.