How to fill in this loan agreement
- 1Date signed
e.g. November 12, 2026 - 2Place signed
e.g. Calamba City - 3Lender's full name
e.g. Rosario M. Aguilar - 4Lender's civil status
e.g. married - 5Lender's address
e.g. 12 Mabini St., Brgy. Real, Calamba City, Laguna - 6Borrower's full name
e.g. Mark Anthony P. Dela Cruz
When to use a loan agreement
Use it whenever you lend money that comes back in installments — to a relative, a friend, an employee. Unlike a short promissory note, it sets out the interest, every due date and what happens on default, so both sides know exactly what is owed each month.
Release the money in a way you can prove
The agreement says how the loan was released. Use a bank transfer or GCash and keep the reference number; for cash, have the BORROWER sign an acknowledgement receipt too.
- Write the amount, rate and term before printing — the schedule follows from them.
- Check the first due date; every later date is the same day of each following month.
- Both parties sign every page, before two witnesses, with valid IDs attached.
When a payment is missed
Send a written demand first (DocsOfUs has a demand letter). Parties in the same city or municipality must go through barangay conciliation before court; claims up to PHP 1,000,000 can then go to small claims court, without lawyers.
Questions people ask
Is there a legal limit on interest?
The Philippines has no fixed ceiling on private loans, but courts cut down interest they find unconscionable — rates of several percent a month are often reduced to 12% a year or less. Interest must be written in the agreement; without it, none is due.
How is the interest worked out here?
Straight-line: the yearly rate is applied to the original principal for the whole term, and the total is split evenly across the months. Every installment is the same amount. A bank's diminishing-balance loan charges less interest at the same rate — say so in the agreement if that is what you agreed.
Does a loan agreement need to be notarized?
No — it binds the parties once signed. Notarizing makes it a public document, easier to prove and enforce. A mortgage on land or a vehicle must also be registered to bind third parties.
Is this legal advice?
No. It is a common Philippine format for a personal loan. For a business lending money regularly, a large loan, or land as collateral, ask a lawyer.
This page explains common practice and is not legal advice. Offices set their own rules — when in doubt, call ahead or ask your notary or lawyer.