Loan agreement

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The most important components that must be included in the loan agreement are:

  • Parties in the agreement (borrower and lender). If the borrower is a legal entity, it must be ascertained whether the authorized person is entitled to represent the legal entity.
  • The term at which the loan (cash) is lent. There are several options:
  • The loan is transferred at the time of signing the agreement (the amount of money that is transferred to the borrower at the time of signing the agreement is indicated in the agreement).
  • The loan is transferred in full or in installments at a specific time (within a certain day after the signing of the agreement or until a specific date).
  • The loan is transferred in full or in parts after certain circumstances have occurred (when the lender has received a commercial pledge or mortgage from the borrower or a third party in accordance with the terms of a commercially pledged or mortgage agreement, respectively).
  • The term within which the loan must be returned to the lender (full or partly).
  • Interest on the loan that the borrower must pay to the lender together with the loan for receiving the loan.
  • Interest on arrears to be paid by the borrower to the lender in case of late repayment of the loan. The Civil Law stipulates that the total amount of default interest may not exceed the amount of the principal debt (may not exceed 100% of the amount of the principal debt).
  • Amount of contractual penalty (it should be taken into account that Section 1716 of the Civil Law stipulates that a contractual penalty for improper performance or non-performance of obligations in a timely manner (term) may be increased, but in total not more than 10 percent of the principal debt or principal obligation).
  • It is important to know that if the contract provides for both default interest and contractual penalty, then the contractual penalty should be given to the borrower only to the extent that it exceeds the default interest already paid, that is, the difference between the contractual penalty and default interest. On the other hand, if the default interest is higher than the contractual penalty, then the lender can claim only the default interest.
  • Dispute settlement procedure. It is important to know that natural persons who take out a loan for private purposes (not for the provision of their economic activity) are not subject to dispute resolution in an arbitration court.


Our team of lawyers will help you prepare a loan agreement, considering the nature of your transaction, the most important components and the party you represent (lender or borrower).


It is possible to attach the loan agreement prepared by us to a notary in the form of a notarial deed. If the loan agreement is signed in the form of a notarial deed, in case of non-repayment of the loan, the loan is to be recovered from the borrower in an undisputed manner. An application and supporting documents for the loan are submitted to the court, based on which the judge alone within seven days, without notifying the debtor.


Type of documentLoan agreement
Blank sample document25,00 EUR
A completed document for the specific customer transaction50,00 EUR


1. Who can be loan agreement parties?

There are no restrictions on who can parties in loan agreement. There are various options – a loan agreement between a company and its founder, a loan agreement between natural persons, a loan agreement between legal entities, as well as a loan agreement for a company

2. Does the loan agreement have to be notarized?

A loan agreement concluded between natural persons does not have to be notarized, but notarization provides several advantages, for example, in case of non-repayment of the loan, the money can be recovered in court without dispute. A judge may, on the basis of a notarial deed, hear a case and make a decision alone.

3. What is the maximum amount of interest for late payment?

According to the Civil Law, the fine for non-timely repayment of a loan may be calculated in this way, but it may not exceed the principal amount of the loan.

4. Are ready-made loan agreements available?

DSSLegal offers to prepare a blank sample loan agreement, in which it is necessary to enter your data and agreement details (term, amount of penalty interest, etc.). This example is suitable for simple cases. If there is no assurance that the model agreement is appropriate for the particular situation, DSSLegal may prepare a loan agreement for the specific transaction.

5. What to include in the contract - default interest or contractual penalty?

The contract may provide for both, but the borrower will have to repay only one of them – the higher. Either the penalty interest and the difference between the penalty interest and the contractual penalty, or only the penalty interest if they exceed the contractual penalty.

6. What is the maximum term of the loan agreement?

The Civil Law does not prescribe the maximum term for which a loan agreement may be concluded.