Private loan agreement – what to include in it?

We can borrow money not only from a bank or non-banking company but also from private individuals. It can be our family, friends, or people we don’t know. Then we are talking about the so-called private loan. Although we do not have to sign a loan agreement of this type up to PLN 500, it is always worth doing. What provisions should be in the loan agreement then?

A private loan is often chosen when it is simply easier for us to borrow money from a loved one. In turn, loans of this type offered by private persons we do not know are more often chosen by people who cannot count on a loan from a bank or loan company, as well as from relatives.

While in the case of loans from people close to us, we usually do not have the issue of trust, because we know the lender and he knows us, the question of security arises in the case of private loans from strangers. It is not uncommon to hear about loans that got into a lot of trouble – it turned out that they were concluded as mortgage and borrowers lost their homes, and could also be associated with huge costs in the absence of timely repayment. 

A private loan agreement should contain the following data:

• information about the parties to the contract, i.e. the borrower and the lender, including their personal, address and contact details

• the amount of the loan and the period for which it is granted

• data on loan costs – commission, interest, and other fees

• the total amount that we have to pay back, ie capital and loan costs

• method of repayment of the liability – in installments, in full, repayment dates and the method of transferring funds, for example to a bank account, is it possible to pay off the loan in full

• the consequences of not paying the loan on time, for example, charging penalty interest

In the private loan agreement, all issues that have not been regulated are subject to the current legal regulations.

Download the loan agreement now

If you need a loan agreement to conclude it, you do not have to prepare it from scratch. You can also download a ready-to-fill contract template which will save you a lot of time. On the web, we can instantly search for private loan agreements that contain all the necessary entries – we just have to complete it.

Of course, if we have any additional requirements for the loan, we can also include them in the contract. However, we should remember that they should not be illegal.