When it comes to taking out a loan, it`s important to have a clear and detailed agreement in place to protect both the borrower and the lender. An unsecured loan agreement is a legal document that outlines the terms and conditions of a loan between two parties.

If you`re in need of an unsecured loan agreement, it`s important to understand what should be included in this document. Here is a template of what a sample unsecured loan agreement might look like:

1. Parties to the agreement: This section should identify the parties involved in the loan agreement, including the borrower and lender`s names and contact information.

2. Loan terms: This section should outline the loan amount, the interest rate, the repayment terms, and any other important details related to the loan.

3. Payment schedule: This section should detail the payment schedule agreed upon by both parties, including the due date for each payment and any penalties for missed payments.

4. Fees and charges: This section should outline any fees or charges associated with the loan, such as late fees or origination fees.

5. Default: This section should explain what happens if the borrower defaults on the loan, including any penalties or collection actions that may be taken.

6. Governing law: This section should indicate the governing law that will apply to the loan agreement.

7. Signatures: The agreement must be signed by both parties to be legally binding.

It`s important to note that while this is a sample agreement, it is always recommended to seek legal advice and customize the document to fit your unique situation.

In conclusion, having a clear and comprehensive unsecured loan agreement in place is essential for both the borrower and lender. Remember to review the agreement carefully and make sure all terms are agreed upon by both parties before signing.