Free Loan Agreement Template (UK)

For lending money to a friend or family member. Plain English, no jargon — fill it in, print it, or save it as a PDF.

Lending money to someone you know is rarely about the money — it's about the relationship. A short written agreement removes the ambiguity that turns a favour into a fallout: both people know exactly what was agreed, and there's a record to point back to.

This template is designed to meet the requirements of a binding loan agreement between private individuals. It is not legal advice; for large sums, secured loans, or anything complex, speak to a solicitor.

What makes a loan agreement sound

  • The full names (and addresses) of the lender and the borrower
  • The exact amount lent, in pounds
  • The date the money is handed over
  • The repayment terms — a due date, or a schedule of instalments
  • Whether interest applies, or a clear statement that it's interest-free
  • Both signatures, each with the date signed
  • A copy kept by both people

Loan Agreement

This agreement is made between ____________________________ ("the Lender"), of ____________________________, and ____________________________ ("the Borrower"), of ____________________________.

1. Loan amount. The Lender agrees to lend the Borrower the sum of £______________ (the "Loan").

2. Date advanced. The Loan was/will be paid to the Borrower on ______________.

3. Repayment. The Borrower agrees to repay the Loan by ______________, either in full or according to the following schedule: ________________________________________.

4. Interest. This Loan is interest-free unless stated here: ______________.

5. Acknowledgement. Both parties sign this agreement freely, intending it to be a true record of the loan that they can rely on.

Lender signature:

Date:  

Borrower signature:

Date:  

How to use this template

  1. Fill in every blank — don't leave the amount or dates vague.
  2. Both people read it through together so there are no surprises.
  3. Both sign and date it. Each person keeps a copy.
  4. When it's repaid, note the date paid on both copies.

Frequently asked questions

Is a loan agreement between friends legally binding in the UK?

A written loan agreement between private individuals can form a binding contract when it sets out the parties, the amount, the repayment terms, and is signed by both people with the intention of creating a record they can rely on. For large or complex loans, take professional legal advice.

What should a personal loan agreement include?

The full names of the lender and borrower, the amount, the date the money is handed over, the repayment schedule or due date, any interest (or a statement that it is interest-free), and both signatures with the date.

Do I need a solicitor to lend money to a friend?

Not for small, simple loans — a clear written agreement both people sign is usually enough. For larger sums, secured loans, or anything complex, get legal advice.

A printed template only helps if it's signed and kept

SharePay does that part for you. Both parties sign digitally, every action is timestamped, the agreement is stored for both sides, and the balance updates as it's paid — with proof of payment uploaded.

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