Document personal or business loans with clear terms for repayment, interest, and security. AI customises every detail, then send for electronic signing in minutes.
Principal amount, disbursement method, and date of advance.
Fixed or variable rate, simple or compound interest, and accrual periods.
Repayment frequency (weekly, monthly, lump sum), amounts, and maturity date.
Optional security provisions, collateral description, and rights on default.
Events of default, cure periods, acceleration clauses, and enforcement rights.
Provisions for early repayment, prepayment penalties (if any), and release of security.
Protect relationships by documenting loan terms clearly. Avoids misunderstandings about repayment.
Formalise director loans with proper documentation for ATO compliance and auditing purposes.
Offer payment plans to customers with documented terms and security provisions.
Select the loan agreement from our library.
Gemini AI fills in lender/borrower details, loan amount, interest rate, and repayment terms. All placeholders removed.
Review and send to the borrower. They sign electronically from any device.
A loan agreement records the terms on which one party lends money to another: how much, at what interest, and how and when it will be repaid. It turns a handshake or a transfer into a clear, enforceable obligation. In Australia, loan agreements range from informal arrangements between family and friends to structured business loans and director loans, and the right level of detail depends on the size and nature of the loan. The one constant is that writing it down protects both the lender and the borrower.
Document any loan you would be unhappy to lose. Family and friends lending money should write down the terms precisely because money disputes strain relationships, directors lending to or borrowing from their own company need documentation for tax and audit purposes, and businesses offering vendor finance or payment plans rely on a loan agreement to define security and default rights. Even a simple loan benefits from a record of the amount, interest, and repayment schedule.
A complete loan agreement states the principal amount and how it is advanced, the interest rate and how it is calculated, and the repayment schedule and maturity date. It should cover events of default and the lender's remedies, any security or collateral, early repayment rights, and what happens on late payment. For secured loans, describing the security clearly and addressing release on repayment is essential. The repayment terms and default provisions are what make the agreement enforceable if the borrower stops paying.
Two issues deserve special care. First, if you lend to consumers as a business, the National Consumer Credit Protection Act 2009 (Cth) and the National Credit Code may impose licensing and responsible-lending obligations; this template is for private, non-regulated loans rather than commercial consumer lending. Second, if the loan is secured over personal property, registering the security interest on the Personal Property Securities Register (PPSR) is generally what makes it effective against other creditors. A mortgage over real property has its own registration requirements.
A standard loan agreement is an ordinary contract, needs no witness, and can be signed electronically under the Electronic Transactions Act 1999 (Cth). Common mistakes include leaving interest and calculation terms vague, omitting a clear repayment schedule, failing to register security on the PPSR, ignoring the tax treatment of interest, and not documenting director loans properly. Spelling out the numbers and the default position clearly is the best protection for the lender, and clarity protects the borrower too.
This page is general information about loan agreements in Australia and is not legal advice. Consumer credit regulation, tax, and security registration depend on the circumstances. For significant or regulated loans, seek advice from a qualified Australian lawyer or accountant.
A verbal loan can be enforceable, but it is very hard to prove the amount, the interest, and the repayment terms if a dispute arises. A written agreement gives clear evidence of what was agreed and is strongly recommended for any loan of substance, including loans between family or friends where good intentions can later sour.
State whether the loan is interest-free or interest-bearing, the rate (fixed or variable), how interest is calculated (simple or compound), and when it accrues. Interest received can be assessable income for tax purposes, so a lender should consider the tax position. Keep the rate reasonable, as unconscionable terms can be challenged.
Yes. If you are in the business of lending to consumers, the National Consumer Credit Protection Act 2009 (Cth) and the National Credit Code may apply, bringing licensing and responsible-lending obligations. This template is intended for private loans (between individuals, or between a company and its director), not for running a consumer lending business. Seek advice if your lending could be regulated credit.
Definitely. Loans between a company and its directors or shareholders should be documented for tax, accounting, and audit reasons, and to avoid them being treated unfavourably (for example, as a deemed dividend under the tax rules). A written agreement with clear terms supports the proper treatment of the loan.
A secured loan gives the lender rights over specific property if the borrower defaults. The agreement should describe the security, the lender's rights on default, and the release of the security on repayment. Security over personal property may need to be registered on the Personal Property Securities Register (PPSR) to be effective against third parties. Unsecured loans simply omit these clauses.
A loan agreement is usually an ordinary contract, so no witness is required and electronic signatures are valid under the Electronic Transactions Act 1999 (Cth). If the loan is structured as a deed or involves a mortgage over real property, additional execution and registration requirements can apply.