Loan Agreement (personal) Format & Template
Tax, GST & Finance · ₹100 · ~8 min · Sign in free, fill the guided form with a live preview, pay to download.
Stamp paper required — state stamp duty on loan amount. You'll receive the draft; e-stamping is done separately per your state's rules.
What is a Loan Agreement (personal)?
A personal loan agreement records a loan between individuals — friends, relatives or colleagues: the amount, the interest (if any), how and when it will be repaid, and what happens if payments are missed.
Loans between people who know each other often go unrecorded until something goes wrong. A signed agreement is the best evidence of the loan and its terms if it ever has to be recovered.
When to use it
- You are lending money to a friend or relative and want it in writing.
- The loan will be repaid in instalments over months or years.
- Interest is being charged and should be recorded.
What you'll need
Keep these details ready — the form asks for them in this order.
Lender
Lender name · Lender address
Borrower
Borrower name · Borrower address
Loan
Loan amount · Interest rate (optional) · Repayment tenure · Repayment mode · Loan date · City · State
How it works
Enter lender and borrower
Names and addresses of both.
Set amount and interest
Principal, interest rate and tenure.
Set repayment
Repayment mode and loan date.
Preview, pay and download
Pay ₹100 and download for stamping and signing.
How to make it legally valid
- Stamp duty at your state’s rate, usually based on the loan amount.
- Signed by both parties with witnesses.
- Money transferred by bank transfer or cheque — income-tax law generally prohibits taking or repaying loans of ₹20,000 or more in cash.
Stamp paper. Stamp duty on a loan agreement is set by each state and usually depends on the amount. Confirm before execution.
Common mistakes to avoid
- Giving the loan in cash, leaving no trail.
- No repayment dates, only “as and when”.
- Letting the limitation period (generally three years) run without an acknowledgement or repayment.
Ready to prepare your Loan Agreement (personal)?
₹100 · live preview before you pay
This is a self-help template for common situations — it is not legal advice and LawMitran is not a law firm. Need help with your loan agreement (personal)? Find a tax law lawyer · Legal documents FAQs.