Best examples of 3 practical loan agreement templates for real‑world use

Before we get into the legal fine print, it helps to see how these documents actually show up in daily life. When people ask for examples of 3 practical examples of loan agreement templates, they’re usually thinking about situations like:

• A $3,000 loan from a parent to an adult child to pay off credit cards.
• A $25,000 shareholder loan to a startup LLC to cover operating expenses.
• A $15,000 car loan where the vehicle is collateral.

All three are technically “loan agreements,” but they should not use the same boilerplate. The structure, risk, and tax consequences are different, so the template needs to reflect that.

To keep this grounded, we’ll walk through three core templates and then layer multiple real examples into each one.

Example of a simple personal loan agreement template

The first and most common of our examples of 3 practical examples of loan agreement templates is the simple personal loan between individuals. Think: no bank, no business entity, just two people and a written promise.

Real examples of when a simple personal loan template fits

Some real examples where this template works well:

• A $2,500 loan from a friend to cover a security deposit and first month’s rent.
• A $5,000 loan from a grandparent to help a grandchild finish college.
• A $1,200 short-term loan between roommates to cover an unexpected medical bill.

In each case, a lean, clearly worded personal loan agreement template is usually enough.

Key sections to include in a personal loan template

When you look at examples of simple personal loan agreements from lawyers or legal aid sites, you’ll notice they almost always contain:

Parties and amount. Names, addresses, and the exact principal amount. No rounding, no “about” language.

Interest and APR. Whether the loan is interest-free or interest-bearing, and if so, the annual percentage rate (APR). The IRS expects interest on many private loans above certain thresholds; if you’re in the U.S., skim the IRS guidance on below-market loans and imputed interest here: https://www.irs.gov/taxtopics/tc505.

Repayment schedule. Fixed monthly payments, a single lump sum, or interest-only followed by a balloon payment. For example, a $5,000 loan at 5% APR over 24 months with equal monthly payments.

Late fees and default. What happens if a payment is missed: grace period, late fee, and when the entire balance can be accelerated.

Prepayment. Whether the borrower can pay off early without penalty.

Governing law and venue. Which state’s law applies and where disputes will be handled.

Two concrete variations of the personal loan template

To make this one of the best examples of a usable template, consider two common variations:

1. Zero-interest family loan with a balloon payment.

• Scenario: A parent loans $10,000 to an adult child to pay off high-interest credit cards.
• Structure: No interest, no monthly payments, one balloon payment due in three years.
• Extra clause: A clear statement that this is a loan, not a gift, to avoid confusion in future estate or tax matters.

2. Short-term emergency loan between friends with installments.

• Scenario: A friend lends $1,500 to another friend for car repairs.
• Structure: 6 equal monthly payments, 4% APR, modest late fee after a 5‑day grace period.
• Extra clause: A simple written acknowledgment that the relationship is important and both parties agree not to let the loan damage their friendship—soft language, but it can reduce misunderstandings.

These are the kinds of details that turn generic examples into real examples you can actually use.

Business-focused example of a loan agreement template

The second of our examples of 3 practical examples of loan agreement templates is the business loan between related parties—usually an owner, investor, or related company lending to a business entity.

Practical business scenarios where this template shines

Here are some examples include:

• A founder loans $40,000 to their new LLC to cover 6 months of overhead.
• A parent company advances $250,000 to a subsidiary to expand into a new market.
• A professional lends $20,000 to a friend’s startup in exchange for a promissory note.

These are not casual personal loans. They can affect tax treatment, ownership, and even how lenders or investors view the company’s balance sheet.

What makes the best examples of business loan templates different

Compared with a personal loan, the best examples of a business loan agreement template will usually:

• Define the capacity of each party (e.g., “Lender is an individual; Borrower is ABC Tech LLC, a Delaware limited liability company").
• Clarify whether the loan is subordinated to bank or institutional debt.
• Address conversion rights, if any (e.g., the lender can convert the loan into equity under certain conditions).
• Include representations and warranties about the business’s authority to borrow.
• Spell out use of proceeds (e.g., “for working capital and not for distributions to members").

For a sense of how business borrowing is treated legally and economically, you can cross-check with educational resources like the Small Business Administration’s financing guides: https://www.sba.gov/funding-programs.

Three real-world examples of business loan templates

To turn this into one of the best examples of business-focused templates, here are three concrete variations:

1. Founder-to-LLC startup loan (unsecured).

• Scenario: A founder lends $30,000 to their own tech LLC.
• Terms: 6% interest-only for 18 months, then full principal due; no collateral.
• Key clauses: Subordination to any future bank debt; clear statement that this is debt, not equity.

2. Intercompany loan between related corporations.

• Scenario: A U.S. parent company advances $500,000 to its UK subsidiary.
• Terms: 4% fixed rate, 5‑year term, quarterly payments.
• Key clauses: Currency, tax withholding, and transfer pricing language to satisfy international tax rules.
• Reference: For international tax concepts, the IRS has guidance on transfer pricing and related-party transactions: https://www.irs.gov/businesses/international-businesses/transfer-pricing.

3. Short-term bridge loan from an angel investor.

• Scenario: An individual investor provides a $75,000 bridge loan to a startup awaiting a larger funding round.
• Terms: 10% interest, 12‑month term, option to convert into preferred stock at a discount if an equity round closes.
• Key clauses: Conversion mechanics, cap table impact, and what happens if no equity round occurs.

These three real examples show how a single business loan template can branch into very different directions depending on risk, tax, and the relationship between the parties.

Secured loan agreement template: an example of asset-backed lending

The third of our examples of 3 practical examples of loan agreement templates is the secured loan agreement, where the borrower pledges collateral.

When a secured loan template is appropriate

Some real examples of secured loans between private parties:

• A $12,000 loan to help a friend buy a used car, secured by the vehicle.
• A $50,000 loan from a relative to fund a home renovation, secured by a second mortgage.
• A $7,500 loan to a small business, secured by equipment or inventory.

In these situations, the lender is taking more risk and usually wants more protection than in a simple personal loan.

Core elements in the best examples of secured loan templates

When you look for examples of secured loan agreements, the stronger ones usually include:

• A detailed description of collateral (VIN for a car, address and legal description for real estate, serial numbers for equipment).
• A security interest clause granting the lender rights in the collateral.
• Instructions on how the lender can perfect that security interest (for example, filing a UCC-1 financing statement in the U.S.). You can see an overview of the Uniform Commercial Code from Cornell Law School’s Legal Information Institute: https://www.law.cornell.edu/ucc.
• Clear default and remedies language, including the right to repossess or foreclose on the collateral, consistent with applicable law.

Two concrete secured loan variations

To round out our examples of 3 practical examples of loan agreement templates, here are two more detailed secured scenarios:

1. Car-backed private loan between individuals.

• Scenario: A lender provides $15,000 for a car purchase at 7% APR over 48 months.
• Collateral: The vehicle itself.
• Template tweaks: The agreement references the car’s make, model, year, VIN, and requires the borrower to list the lender as a lienholder on the title and maintain full insurance.

2. Second-position home renovation loan.

• Scenario: A homeowner borrows $40,000 from a relative to remodel a kitchen and bathroom.
• Collateral: A second mortgage on the borrower’s home.
• Template tweaks: The loan agreement is paired with a deed of trust or mortgage document, recorded with the county. It also clarifies that the first mortgage has priority and that the relative’s loan is junior.

These two secured real examples highlight why a generic personal loan template is not enough when collateral is involved.

Comparing the 3 practical examples of loan agreement templates

At this point, we’ve walked through three main categories and multiple real examples under each. To tie the examples of 3 practical examples of loan agreement templates together, it helps to compare them by a few dimensions:

• Relationship: Family/friends vs. business vs. investor.
• Risk level: Unsecured personal loans are lighter on formalities; secured and business loans demand more structure.
• Regulation and tax: Business and related‑party loans may trigger tax and regulatory issues that personal loans usually avoid.
• Formality: A one-page promissory note might work for a \(1,000 short-term loan; a \)250,000 intercompany loan probably needs a longer, attorney-reviewed agreement.

When you review any example of a loan agreement template online, mentally slot it into one of these three categories. If it doesn’t clearly fit, it may not be the right starting point.

How to choose the right template for your situation

If you’re trying to apply these examples of 3 practical examples of loan agreement templates to your own situation, ask yourself:

• Is this personal or business-related?
• Will there be collateral?
• What’s the amount and duration of the loan?
• Are there tax or cross-border issues?

Then match your answers to the closest of the three template families:

• Personal, unsecured → start with the simple personal loan example.
• Business, related parties → use the business-focused example and add representations, subordination, and possibly conversion features.
• Collateral involved → adapt the secured loan example of an asset-backed agreement, and learn how to perfect a security interest in your jurisdiction.

Whenever the amount is significant or the situation is complex, it’s worth having a local attorney review your draft. Many state bar associations and legal aid organizations provide low-cost or pro bono assistance; you can search through resources listed by the Legal Services Corporation at https://www.lsc.gov/what-legal-aid/find-legal-aid.

FAQs about examples of loan agreement templates

What are some common examples of loan agreement templates people actually use?

Common real-world examples of loan agreement templates include: a one-page personal promissory note between friends, a founder-to-LLC loan agreement, a secured car loan between individuals, an intercompany loan agreement between related businesses, and a bridge loan note from an angel investor to a startup.

Can I use the same example of a loan agreement template for both personal and business loans?

You can, but you probably shouldn’t. A simple personal loan template may not include the representations, subordination language, or tax-sensitive provisions that business-related examples include. It’s better to start with a business-focused example of a loan agreement template when an entity is involved.

Are free online examples of loan agreements legally valid?

Many free examples of loan templates are legally valid in a general sense, but they’re not tailored to your state or country, and they may skip key clauses like default remedies or security interests. Treat them as educational starting points, not final documents. When the stakes are high, have a lawyer adapt the template.

Do I always need collateral for a private loan agreement?

No. Several of the best examples we covered are unsecured, especially small personal loans. Collateral becomes more common as loan amounts increase, repayment periods lengthen, or risk rises.

What’s the safest way to document a family loan?

Use a written agreement modeled on the personal loan examples of 3 practical examples of loan agreement templates above: spell out the amount, interest (even if modest), repayment schedule, and what happens on default. For larger loans, talk to a tax professional about interest rates and documentation so the loan isn’t reclassified as a gift.

Used thoughtfully, these three families of templates—and the 6–8 real examples we walked through—give you a practical, grounded way to structure almost any private loan. They’re not a substitute for legal advice, but they’re a strong starting point for organizing the deal, clarifying expectations, and reducing the odds of an ugly dispute later.