When it comes to lending money to someone, it is essential to have a written agreement that outlines the terms and conditions of the loan. This agreement helps to ensure that both the lender and borrower are on the same page and have a clear understanding of their responsibilities and obligations. In this article, we will explore the format of an agreement to lend money and what information should be included in it.

Header Section

The agreement should start with a header that includes the title of the agreement and the date it was created. This section should also include the names and addresses of both the lender and borrower.

Loan Details

In this section, the agreement should list the details of the loan. This includes the loan amount, the interest rate, and the repayment terms. It should also include any fees, such as late payment or prepayment fees, that may be associated with the loan.

Repayment Schedule

The repayment schedule outlines the payment due dates and the amount that is due for each payment. This section should also include the method of payment and the consequence of missing a payment.

Security Agreement

If the loan involves collateral, such as a car or property, a separate security agreement should be included in the agreement to lend money. This agreement should outline the lender`s rights if the borrower defaults on the loan.

Representations and Warranties

The agreement should include representations and warranties from both the lender and borrower. This section confirms that both parties are legally able to enter into the agreement and that all information provided is accurate.

Confidentiality Clause

If the lender is providing confidential information or trade secrets to the borrower as part of the loan agreement, a confidentiality clause should be included to protect the lender`s interests.

Governing Law

The governing law section outlines which state`s laws will govern the agreement. This section helps to ensure that the agreement will be enforceable in the event of a dispute.


Both the lender and borrower should sign the agreement to lend money to indicate their agreement to the terms and conditions. The signature section should also include a space for the date and the parties` printed names.

In conclusion, an agreement to lend money is an important document that helps to protect both the lender and borrower. By following the format outlined above and including all necessary information, you can create a strong agreement that will help to ensure a smooth and successful loan transaction.