Credit Agreement Template

This is an official credit agreement between [Lender.FirstName]​[Lender.LastName] (hereby known as 'the Lender') and [Borrower.FirstName]​[Borrower.LastName] (hereby known as 'the Borrower').

Both parties agree to fulfill the promises and conditions noted in this credit agreement.

CREDIT SPECIFICS

(Use this option for no-interest credit agreements)

The Lender agrees to loan _________ (total amount of the credit) to the Borrower. The Borrower agrees to repay the total amount in full before _________ (date). This loan will incur no interest.

(Use this option for interest-added credit agreements)

The Lender agrees to loan _________ (total amount of the credit) to the Borrower. The Borrower agrees to repay the total amount in full before _________ , along with any interest incurred on the unpaid monies at the rate of ____% per year, beginning on _________ (date). This interest is calculated yearly, not in advance.

(The rest of this agreement is used for both)

PAYMENT OPTIONS

This loan will be repaid by the Borrower to the Lender in full by __________ (date).

The Borrower agrees to repay the loan through consecutive monthly payments of ________ (total monthly payment). Payments will be taken on ___________ (the day of the monthly payments will be withdrawn).

The Borrower agrees that payments paid over ______ (no. of days) late will be subject to a ________ (monetary amount) late fee.

Start Date of the First Payment: ___________

End Date of the Last Payment: ____________

(Subject to any lump sum payments made by the Borrower)

Loan Amount: ___________

Interest Rate: ___________

Late Fee: _______________

Payment Method: ____________

During this agreement, the Borrower can make additional lump sum payments or pay the loan's outstanding balance to reduce interest or shorten the duration of the loan term. This should be without further bonus or penalty.

All payments should be made to the following account:

Bank Name: _____________

Branch: ________________

Name on Account: _________

Account No: _____________

Sort Code: ______________

DEFAULTING

Should the Borrower breach the payment clause of this agreement, the Lender can request that the loan's original amount be paid immediately.

Without limitation, the Borrower shall be liable for all expenditure and legal costs incurred while enforcing this agreement in the event of a default.

CREDIT AGREEMENT MODIFICATIONS

This agreement is legally binding. The terms of which can only be modified via written communication from both the Borrower and the Lender.

GOVERNING LAW

This agreement will be governed by [Lender.State] (corresponding law).

OWNERSHIP OF CREDIT AGREEMENT

Both parties agree that the terms in this agreement are non-transferable unless written consent is provided.

The Lender and Borrower agree to the conditions set out in this agreement: