Build your Loan Agreement
Lender & borrower
Who is lending and who is borrowing.
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LOAN AGREEMENT
THIS AGREEMENT is made on [date] at [place]
BETWEEN [lender name], ID No. [lender ID], telephone [lender phone] (the "Lender")
AND [borrower name], ID No. [borrower ID], of [borrower address], telephone [borrower phone] (the "Borrower").
1. The loan
The Lender has advanced to the Borrower the sum of [amount] ([amount in words]) on [date advanced] by [payment method].
The Borrower acknowledges receipt of the full amount stated above.
2. Interest
The loan is interest free.
3. Repayment
The loan shall be repaid in full on or before [final date].
All payments shall be made by a traceable method and each payment shall be acknowledged in writing or by message.
4. Security and guarantor
No security is given for this loan.
5. Default
If the Borrower fails to pay any amount on its due date, the whole outstanding balance becomes immediately due and payable and the Lender may take steps to recover it, including recovery costs.
Entire agreement
This document contains the entire agreement between the parties on this matter and replaces any earlier spoken or written understanding.
Signed at [place] on [date].
Lender
[lender name]
ID No. [lender ID]
Signature: ______________________
Date: ______________________
Borrower
[borrower name]
ID No. [borrower ID]
Signature: ______________________
Date: ______________________
Generated with Daily Contracts Kenya — practical document templates for everyday transactions. This is a general-purpose template for use in Kenya and is not a substitute for legal advice.