Personal loan agreement template

Yes — free with a watermark and 0 AI Deep Detect, then $8.99/mo Start for 8 AI Deep Detect/mo. No credit card required for the free plan.

Yes — files are stored encrypted (AES-256 at rest) on EU servers, never used to train third-party AI. SOC 2 Type II controls. Sensitive identifiers (SSN, EIN) are masked in our staff console.

Federal law does not require notarization, but it strengthens enforceability and is required by some banks and courts for loans above a threshold. State laws vary — check with a notary in your state. iFillPDF includes a pre-formatted notary jurat block.

Varies by state, loan size and lender status. Civil usury caps as of 2025: New York Gen. Oblig. Law §5-501 = 16% (criminal usury at 25% under Penal Law §190.40, a Class E felony — exceeding 25% voids the entire loan including principal per Adar Bays LLC v. GeneSYS ID Inc. 37 N.Y.3d 320 (2021)), California Const. art. XV §1 = 10% for non-licensed lenders (5% above Fed discount rate for forbearance, no cap for licensed CFL lenders), Texas Fin. Code §302.001 = 18% absolute (doubled to 24% as a §305.001 usurious-charge penalty), Florida Stat. §687.03 = 18% under $500K loans / 25% above as criminal usury / 45% as Class III RICO racketeering predicate under §687.071. Federally chartered banks and FDIC-insured state banks are preempted under 12 USC §85 + §1831d via the Marquette Nat'l Bank v. First of Omaha 439 U.S. 299 (1978) "exporter doctrine" — they can charge their home-state rate to borrowers anywhere, which is why credit cards from SD/DE/UT routinely exceed 25%. The OCC True Lender Rule (12 CFR §7.1031, partially repealed in 2021) and Madden v. Midland Funding 786 F.3d 246 (2d Cir. 2015) created uncertainty for fintech rent-a-bank programs. None of this saves an individual lending to friends or family — iFillPDF's AI flags rates above your state civil cap, which LawDepot ($39/mo) and FormSwift ($39/mo) templates do not.

Yes if you receive $600+ in interest from a borrower in trade or business — file Form 1099-INT by January 31 (26 U.S.C. § 6049). Personal loans between family or friends are usually exempt from 1099-INT reporting, but the IRS imputes interest at the Applicable Federal Rate (AFR) — published monthly by the IRS in Rev. Rul. tables — on any loan above $10,000 charged below market rate (IRC § 7872 below-market loan rules). If you lend Mom $50,000 at 0% interest, the IRS treats it as if you charged the AFR (e.g. ~4.5% short-term in 2026), forces you to recognize phantom interest income, and treats the foregone interest as a gift to the borrower (counting against your $19,000 annual gift-tax exclusion). Two safe-harbor exceptions: (1) loans up to $10,000 between individuals if not used to buy income-producing assets, (2) loans up to $100,000 between individuals where imputed interest is capped at the borrower's net investment income. iFillPDF's AI suggests the current short/mid/long-term AFR for your loan term so you stay compliant.

Yes — under the federal ESIGN Act (15 U.S.C. § 7001) and UETA, e-signatures on consumer and personal loan agreements are legally binding. Some state-specific consumer disclosures (TILA, Reg Z) may require additional formalities for licensed lenders.

The lender can sue in civil court for the unpaid balance (small-claims for amounts under your state's cap, typically $5K-$25K, or regular civil court above). With a properly drafted acceleration clause, the entire remaining balance becomes due immediately upon default. Statute of limitations on written contracts: 4-15 years depending on state.