Australian Legal Templates

Loan Agreement

Suitable For Use :NSW, QLD, VIC, WA,NT, ACT

Word Format

Lawyer Drafted

Money Back Guarantee

Australian Owned

Simple Loan Agreement for Unsecured Loan.

As a business owner you may well ask “why is a Loan Agreement important?” You will almost certainly want to understand the terms and complexities of your business loan agreement so that you or your legal team can negotiate with the lender to get the best possible deal for you.

Loan Agreement 

Download a  Loan Agreement Template for an agreement between a Lender and a Borrower. This template is a formal way of setting out the terms and conditions of the loan.

The Loan Agreement Template includes:-

  • 1.1 Definitions
  • 1.2 Interpretation
  • 2          Loan
  • 3          Interest
  • 4          Repayment
  • 5          Early repayment
  • 6          Guarantor guarantee and indemnity
  • 7          Costs
  • 8.1 Counterparts
  • 8.2 Force majeure
  • 8.3 Further assurance
  • 8.4 Governing law and jurisdiction
  • 8.5 Notices
  • 8.6 Service of notices
  • 8.7 Severability
  • 8.8 Survival  & merger
  • 8.9 Variation
  • 8.10    Waiver
  • 8.11    Warranties and representations
  • 8.12    Whole agreement
  • 1. the initial amount being borrowed
  • 2. how it is repaid
  • 3. any interest payable
  • 4. guarantors

The lender may be a human or a company. The Borrower can be a human or a company.

It is important that the Borrower fully understands the nature of what they are agreement sets out and the consequences of not repaying can be very serious and may be followed by debt collection


9 Pages


Includes GST





FREE Legal Drafting Booklet to guide you with drafting your legal documents.

Precedents Online sells legal documents to the legal profession in Australia. The online legal documents are supplied by Kalde Legal Pty Ltd. Most of the copyright in the works available on this site vests in Kalde Legal Pty Ltd and the documents themselves have been created by practising lawyers.

Legal precedents sold on this site are available for immediate use.  Precedents shown on this site have been drafted by practicing lawyers and kept up to date with changes in the law.

Precedents Online. Powered by Kalde Legal.

Loan Agreement Template

This precedent is a basic loan agreement. Loan transactions can be fairly simple or extremely complex depending on the following:

  • parties to the transaction;
  • nature of the loan;
  • manner of repayment of the loan amount;
  • type of interest payable; and
  • security to be provided.

The agreement can be customised to take into account the peculiarities of each transaction. It is important to include variables based on the different circumstances of individual borrowers.


Be aware of the legislation that either proscribes the type of provisions to be incorporated in these agreements or directly impacts loan transactions in Australia.

  • Consumer credit legislation

Consumer credit law in Australia is governed by the National Consumer Credit Protection Act 2009 (Cth) (NCCP) which includes the National Credit Code (NCC). The NCC applies to credit contracts where:

  • the lender is in the business of providing credit;
  • a charge is made for providing the credit;
  • the debtor is a natural person or strata corporation (a strata corporation is a body made up of owners in a strata scheme and has responsibility for maintaining and repairing the common property and managing the finances of the strata scheme, taking out insurance, administering the by-laws, keeping records and accounts for the strata scheme); and
  • the credit provided is for personal, domestic or household purposes, to purchase, renovate or improve residential property for investment purposes, or to refinance credit previously provided for this purpose.

The NCC does not apply to certain loans including low-cost short-term credit contracts (62 days or less) and certain small value credit transactions.

  • Code of Banking Practice (Banking Code)

Most banks in Australia voluntarily agree to bind themselves to the Banking Code. The Banking Code sets standards of good banking practice to be followed by banks when dealing with individuals and small business customers and their guarantors. The provisions of the Banking Code are enforceable against those banks who bind themselves to its terms.

  • Banking (Foreign Exchange) Regulations 1959 (Cth) (Regulations)

It is important to ensure that any loan agreement relating to a loan made in foreign currency or to be paid in foreign currency is not vulnerable to interpretation as a transaction involving the buying and selling of foreign currency. Otherwise, the agreement will be subject to the Regulations.

  • Personal Property Securities Act 2009 (Cth) (Act)

This Act regulates the provision and registration of personal property securities. (refer to the PPSA Loan Agreement)

This precedent

This precedent sets out the basic terms to be incorporated into a loan agreement. The precedent should be customised for each loan transaction, including:

  • the identity of the lender, creditor and borrower;
  • the nature of the loan;
  • agreed payment terms;
  • interest repayments; and
  • security to be provided, if any.

For the purposes of this precedent, the lender or credit provider is a company. However, the precedent can be customised for use where the lender is an individual. This loan agreement does not take into account the requirements of the NCC and it will need to be amended when drafting a loan agreement that needs to comply with the NCC.



What Our Customers Say


Great service. Fast response and a good price. Easy to follow the download procedure.

Would definitely use again.

Jim - Director Domain Tax & Accounting


Looking forward to purchasing more precedents as it's a great service for a small legal practice just starting out.

Maree - Lawyer - Law Lab


Easy to Use.  Immediate response to my query online.  I have used them for many of my legal dealings.  Very happy with service.

John - Eussen Living


Leave this field blank

Word Download

Immediate attachment of the download with your confirmation email.

Download in Word Format.  Simply, save  and reuse.

No Memberships

No Memberships, Logins Required.

No forms or Template to complete before download.  Download immediatley.

Free Legal Booklet

FREE Legal Drafting Booklet to guide you with drafting your legal documents.

Document Review Service by Lawyer.


Australian Owned

Australian Owned & Operated.  All Templates drafted by practicng  Australian Lawyers.

Exercise Your Option

Australian Legal TemplatesExercise your Option.   An option is a right to a further term. Usually, a tenant has an option in their lease to a further term giving them the right to have the lease on substantially the same terms (allowing for rent increases), but the...

Tax issues in Family Law – “The difference between Hacking and Carving.”

       Family lawyers involved in financial matters are really undertaking forced estate planning. As such, they and financial...

Is your Tenant Creditworthy?

Is my tenant creditworthy? Signing up a new tenant for a commercial lease is a costly process. To find out that your new tenant cannot pay the rent is disappointing and adds further costs to managing your property. Whether or not you hire a real estate agency to...

It starts with a Heads of Agreement

Heads of Agreement When you find a tenant for your rental property the first thing to do is secure a commitment. Most agents will ask the tenant to sign a Heads of Agreement and pay one month’s rent as a down payment. If the tenant does not proceed, then the...

Do Legal Letters Help With Debt Recovery?

WANT TO KEEP IT SIMPLE?  Download our 3 Letters of Demand Templates. Letter of Demand 1 An initial letter of demand that is polite and assumes there may have been an oversight in not paying. Allows 7 days for payment.  Letter of Demand 2 A more threatening letter that...

Free Marketing Tools for Small Business You Didn’t Know You Were Missing

There are thousands of small businesses springing up daily, and it has raised the level of competition between these small businesses. After a while, some businesses survive and grow to a higher level, while some crumble and become extinct. Marketing tools have been...

Thinking of Starting a Business?

Australian Legal TemplatesBy Eric Kalde KALDE LEGAL  This is a book about starting a business. It provides a map, compass and checklist for starting a business from the ground up. I explain the process, and recommend the order in which you do things. I make...

A new LEASE on life

Are you likely to get any rent concession from your landlord?  Probably not and these are the reasons why? Statutory (Covid) rent concessions do not apply to new leases. In renewing your lease you are entering into a new lease. You are therefore not entitled to any...

Why you need a Power of Attorney especially in Covid-19

Support For Individuals, Couples, & Families Why do I need a Power of Attorney? The starting point is to have your loved one authorise you or someone they trust to act on their behalf through both a power of attorney for financial affairs and enduring...