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Loan Agreement with Guarantor

This document can be used to set out the terms of a loan where a third party (the guarantor) will promise to cover loan repayments in the event that the borrower is unable to.

If you’re looking to lend money to someone, whether in a personal capacity or within a business, you need to set out a document which ensures that you will get paid back, especially if you are planning on including a guarantor in the deal.

This document may be used to set out the terms under which a simple private loan will be made, in situations where a third party (the guarantor) will promise to provide loan repayments in the event that the borrower should default. The document establishes:

  • who will be the lender, borrower, and guarantor of the loan
  • the amount of money being loaned and how much interest will be due
  • the repayment schedule and circumstances in which the loan can be repaid early
  • the responsibilities of the guarantor
  • the consequences if a loan payment is missed

It also supersedes and overrides any previous agreements and understandings between the two parties, and prevents any third party from trying to enforce any part of the agreement.

The document can be quickly and easily downloaded, and you don’t need any legal knowledge to fill it out.

This document should not be used to make a loan in any business-consumer situation, or for any situation which could be interpreted as a business-consumer transaction. Please note that loans to consumers are regulated by the Consumer Credit Act and may only be provided by businesses which hold a consumer credit licence.