Personal Loan Agreement.

If you intend to lend or borrow money with another individual, it is imperative to record the terms of the loan to protect your position. The most common way of achieving this is to draft a loan agreement which will become an enforceable and legally binding contract with the other party in the event anything goes wrong.

Loans most commonly come in two varieties, secured and unsecured.

• Secured - Generally used by financial providers and involves the borrower providing some kind of formal security to backup the loan such as their property, a guarantor, an asset or shares in a company. As this type of agreement requires additional legal work (registering a charge on a property etc.) it can be a complex transaction.
• Unsecured - A simpler arrangement generally used between family, friends or business colleagues to document the amount loaned and repayment terms. Should repayments ever be defaulted on, this agreement can then be used to begin court proceedings and claim the associated legal fees.

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​We are specialist loan agreement solicitors and can provide a cost effective unsecured loan agreement that will formalise the transaction and safeguard your position.
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Private loan agreements can include:

• Loan agreement between friends
• Loan agreement between family members
• Formalise a repayment arrangement for a debt or loan that has already been made (retrospective loan agreement)
• Repay an ex-partner following separation
• Loan agreement for a large purchase (car, furniture, wedding etc.)
• Lending to help with legal costs (divorce loan etc.)

Loan Agreement Solicitors.

The loan agreement drafting service we offer is flexible and customisable depending on your circumstances and drafting requirements. We will take your instructions and have a solicitor draft the agreement to your specification, all for a straightforward fixed fee so you can be certain of all the costs involved.

Our personal loan contract drafting services are suitable for most unsecured loans between individuals with a fixed term that occur under the jurisdiction of England and Wales that do not relate to a property transaction (e.g. a mortgage deposit).

Loan Agreement Drafting

Drafting of a customised unsecured loan agreement by a solicitor (with or without interest) that is tailored to your exact needs

• For a fixed fee we will:
• Take details of the intended loan, the parties involved, any interest requirements, and the desired repayment schedule
• Create a customised contract that formalises the arrangement and protects your position
• Supply a draft contract for you to review, and if needed a telephone call to answer any questions
• Provide a final version in Microsoft Word (DOC) or Adobe (PDF) format that all parties can sign

From £ 150 *

* our drafting fixed fee is typically £150 including VAT, however once your requirements are received we will confirm this.

Drafting a personal loan agreement.

We aim to make the drafting process as simple and straightforward as possible. Once we receive your requirements via our online enquiry form, a solicitor will briefly consider the details and provide a fixed cost to draft your agreement.

No two loan contracts are the same and so if we require further information from you, the majority of correspondence can be done quickly over email or the telephone. We will then produce the contract and send you a draft to consider. If any changes are required, your lawyer will then action these before providing a finalised version in Microsoft Word or Adobe PDF format along with instructions on how to sign and complete the transaction.

Our drafting process is simply the below:

1
Inform us of your requirements

2
We'll confirm our fixed drafting fee

3
A solicitor will create your agreement

4
Provide you with a draft to consider

5
Discuss and finalise any changes

Quotation for a solicitor drafted loan agreement.

Loan agreement advice and review.

If you have been given a draft personal loan agreement to consider and sign, we can also offer a fixed fee service to review and advise you on it's content. All agreement reviews undertaken by a Solicitor with over 10 years post qualified experience.

Please use the above form to upload your draft agreement and we will get back to you with a quote to conduct the review. 

Enforcing a personal loan.

Should the worst happen and a debtor defaults on the repayment of a loan, we can offer a variety of additional fixed fee services to take legal action to recover the amount owed. Having a signed and professionally drafted contract in place will be invaluable in court proceedings especially when the loan is between friends or family members.

Please visit our debt recovery for individuals or business debt recovery pages for more information.
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   Recommended Solicitors

"The expertise and guidance provided by Catalyst was extremely helpful and made an unfamiliar process of a contract agreement understandable and put my mind at ease. Jane especially, took time to ensure that my requirements and needs were not just covered, but exceeded, by offering additional guidance to ensure additional clauses were included to cover me further. I would certainly not hesitate to use Catalyst again." - Ant James, Consumer Client

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Further resources on loaning money to family and friends.

• What should be in a loan agreement? - We explain what important clauses and terms and conditions should be included in a contract when lending money.

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• What to do when money is owed by a friend - Helping out family members or fiends financially is often a no brainer for most of us, but sometimes getting paid back isn't always as easy.​


• When can you claim interest on a debt? - If you lend money as an individual (not a business) there is no automatic entitlement to claim interest on any subsequent debt unless you have a signed contract that defines it.

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