Loan Agreement Generator

Money lent between friends, family or business acquaintances without paperwork is a common source of both financial loss and damaged relationships — memories of "how much" and "by when" diverge remarkably fast once a repayment is late. A simple, signed loan agreement fixes the terms in writing before any disagreement can start: the amount, the interest rate (zero is fine, and common between family), and the repayment schedule.

This generator produces exactly that: principal amount, annual interest rate (set to 0% for an interest-free family loan, or a market rate for a formal arrangement), repayment period in months with an estimated monthly instalment, prepayment rights, and what happens on default — the lender's right to demand the full outstanding balance after 15 days' notice following a missed payment.

One practical note for India: loan agreements above certain thresholds may attract stamp duty and, in some states, require registration to be fully enforceable in court — the requirements vary by state and loan size, so check locally before relying on an unregistered agreement for a significant amount. For smaller, informal loans between individuals, a signed (even if unregistered) agreement is still far better evidence than no paperwork at all.

Both lender and borrower should keep a signed copy, and settling repayments through a traceable channel like bank transfer (rather than cash) creates a cleaner paper trail alongside the agreement itself — useful if either party ever needs to demonstrate the loan and its repayment history to a bank, an auditor, or in a dispute.