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Creating a repayment agreement is an important step in any financial transaction. Whether you are lending money to a friend or family member, or offering a payment plan for a product or service, it is essential to have a written agreement in place to protect both parties.

Below is a sample repayment agreement that can be used as a guide when creating your own.

Repayment Agreement

This agreement (“Agreement”) is made on [Date] between [Lender], located at [Address] (“Lender”), and [Borrower], located at [Address] (“Borrower”).

Loan Details

Lender agrees to loan Borrower an amount of [Loan Amount] (“Loan”) on [Date of Loan]. The Loan shall be repaid according to the payment plan outlined below.

Payment Plan

Borrower agrees to repay the Loan according to the following payment plan:

– Monthly payments of [Payment Amount] shall be due on the [Due Date] of each month.

– The first payment shall be due on [Date of First Payment], and the final payment shall be due on [Date of Final Payment].

– Payments shall be made to [Payment Recipient], located at [Address].

– If Borrower fails to make a payment by [Due Date], a late fee of [Late Fee Amount] shall be added to the outstanding balance.

– If Borrower fails to make a payment within [Grace Period] days of the Due Date, Lender may accelerate the Loan and declare the entire outstanding balance due and payable.

– Borrower may prepay the Loan at any time without penalty.


Borrower shall provide [Collateral] as security for the Loan. If Borrower fails to repay the Loan, Lender may take possession of the Collateral to satisfy the outstanding debt.


Borrower shall be in default if:

– Borrower fails to make a payment by the Due Date and does not cure the default within the Grace Period.

– Borrower breaches any other provision of this Agreement.

Upon default, Lender may exercise any of its rights and remedies, including accelerating the Loan and taking possession of the Collateral.

Governing Law

This Agreement shall be governed by and construed in accordance with the laws of [State]. Any disputes arising under this Agreement shall be resolved in the courts located in [County].


This Agreement may be amended or modified only in writing signed by both parties.

Entire Agreement

This Agreement constitutes the entire agreement between the parties and supersedes all prior negotiations, understandings, and agreements.

IN WITNESS WHEREOF, the parties have executed this Agreement on the date first above written.

[Lender Signature] [Borrower Signature]

[Print Name] [Print Name]