Formalize a loan between individuals with clear terms for amount, interest rate, repayment schedule, prepayment, default, and late fees. Keeps personal lending transparent and structured.
KEY TERMS
The Lender agrees to loan the Borrower the principal amount as mutually agreed upon (the "Loan Amount"). The Borrower acknowledges receipt of this amount.
The outstanding principal balance shall accrue interest at the rate agreed upon by both parties per annum, calculated on a simple interest basis. If no rate is specified, the loan shall be interest-free.
The Borrower agrees to repay the Loan Amount together with all accrued interest according to the repayment schedule agreed upon by both parties. Repayments shall be made by the agreed method and on the agreed dates.
The Borrower may prepay the outstanding balance in whole or in part at any time without penalty. Prepayments shall be applied first to accrued interest and then to the outstanding principal.
The Borrower shall be in default if any scheduled payment is more than 15 days past due. Upon default, the full outstanding balance shall become immediately due and payable at the Lender's discretion.
Frequently Asked Questions
Yes. A written loan agreement between individuals is a binding contract. Courts enforce repayment terms, interest rates (if legal), and default provisions. Having the agreement signed and dated — or signed onchain — strengthens enforceability.
You must comply with usury laws in your jurisdiction, which cap the maximum interest rate. Charging above the legal limit can render the interest clause void and may carry penalties. If in doubt, keep the rate modest or make the loan interest-free.
Absolutely. A clear schedule — specifying amounts and due dates — prevents misunderstandings. Noira's template includes a repayment schedule section and defines default as any payment more than 15 days late.
The agreement should state that the full outstanding balance becomes immediately due upon default. The lender can then pursue collection through small-claims court or other legal remedies. Noira's template includes a standard acceleration clause.
Most personal loan agreements allow prepayment without penalty, and Noira's template includes this by default. Prepayments are applied first to accrued interest, then to principal, reducing the total interest paid over the life of the loan.
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