Skip to content

Loan Agreement

A loan agreement is an agreement between two parties whereby one party (the lender) agrees to provide a loan to the other party (the borrower). It is an essential legal document to enforce the terms of the loan and to show that it was, in fact, a loan and not a gift.

There are two types of loans:

  • secured loans;
  • and unsecured loans.

Each type of loan has different obligations and protections for borrowers and lenders. Unsecured means there is no security against the loan should the borrower end up in default. A secured loan, on the other hand, ensures the lender can recover its money by taking possession of the borrower’s asset(s), selling them and using the sales proceeds to repay the debt. The majority of loans, such as home loans, are secured against an asset.

It is important to keep in mind that there is also a Division 7A Loan Agreement template available.

A Division 7A loan agreement is a loan agreement that covers certain payments or loans that are made or debts that are forgiven by a private (i.e. proprietary limited) company and would otherwise be treated for tax purposes as assessable income of the recipient.

As a member, you can request unlimited legal documents to be drafted or reviewed for your business, including this Loan Agreement. Our membership also provides unlimited legal advice consultations, faster turnaround times and ongoing legal support for an affordable monthly fee.
Learn more about becoming a member today.

Get your
Loan Agreement

Free Document
Basic Loan Agreement template
Editable Word document that you can print
Self-serve online
Download your Loan Agreement instantly
Bespoke Document
Fully personalised Loan Agreement
Complimentary initial consultation
Five business day turnaround
You are protected under our insurance
Access to a specialist lawyer
30 minute complimentary consultation to discuss any changes to your Loan Agreement
One round of amendments
Recommended

What's included?

The LegalVision Loan Agreement is a short form, unsecured loan deed. It assumes that:

  • there is a single borrower (either a company or an individual) and a single lender (either a company or an individual);
  • the lender is not committed to provide the loan;
  • the loan is unsecured; and
  • the borrower must repay the loan on a fixed repayment date or, if the agreement provides, on demand.

The document is 23 pages long and contains 15 clauses and 3 schedules.

This loan agreement is a short form loan agreement. It assumes there is a single borrower (which is either a company or an individual) and a single lender (which is either a company or an individual). Although the loan is unsecured, it does contain an optional guarantee clause which you can include if the borrower’s obligations under the loan agreement are being guaranteed by a third party (again the guarantor can be either a company or an individual). This agreement assumes that the loan is not regulated by the National Credit Code.

Benefits of Choosing LegalVision

We know there are many online document websites and legal marketplaces to choose from. When you choose LegalVision, you can rest assured we are always here to help you.

  • We are a commercial law firm with industry-leading client satisfaction scores (read our reviews!)
  • All of our templates are drafted by qualified lawyers and regularly reviewed.
  • We have assisted over 250,000 businesses.
  • You can email or call our team for a free consultation to discuss any legal questions.

What our clients say about us

How we help
our clients

  • Cost Certainty

    We offer our clients a range of pricing options to suit their needs and provide transparency around legal costs. Our membership offers unlimited legal services for an affordable monthly fee.

  • Specialist Lawyers

    LegalVision caters to a full range of commercial law needs. Our lawyers are specialists who bring extensive experience from working at leading law firms in Australia, the United Kingdom, New Zealand and across the world.

  • Responsive Timeframes

    We understand that timing is critical, particularly for businesses that have a large number of legal projects. LegalVision is committed to delivering our services within short timeframes that fit the commercial needs of our clients.

  • Custom Technology

    We have built our tech stack from the ground up. Our team of developers build technology to help streamline the workflow of our legal team and improve the client experience for our members.

We’re an award-winning law firm

  • Award

    2025 Future of Legal Services Innovation Finalist - Legal Innovation Awards

  • Award

    2025 Employer of Choice - Australasian Lawyer

  • Award

    2024 Law Company of the Year Finalist - The Lawyer Awards

  • Award

    2024 Law Firm of the Year Finalist - Modern Law Private Client Awards

  • Award

    2022 Law Firm of the Year - Australasian Law Awards