Loan Agreement: unsecured

When do I use this document?

• for an unsecured loan of a fixed amount to be drawn in a single advance
• for a borrower which is a company incorporated in England and Wales
• for a loan repayable on a single repayment date or in instalments

What are the key features?

• 21 clauses over 13 pages
• single advance of the total amount of the loan money to the borrower
• unsecured loan
• regular interest payments at either fixed or floating interest rate by reference to specified bank’s base rate of interest
• repayment terms, with repayment either on a single repayment date or in instalments
• undertakings from the borrower, including to provide information to the lender lending money (such as copies of its financial statements) and prohibitions on granting security and additional borrowings
• events of default, including if the borrower fails to repay the loan or interest and other borrower defaults, leading to the lender having the right to demand immediate repayment

What other documents are available?

For a form of secured loan agreement template, under which the borrower secures its obligations to the lender by granting a charge or other form of security, see

• Loan Agreement: secured

For forms of unsecured and secured facility agreements

• Facility Agreement: unsecured
• Facility Agreement: secured

If a director or shareholder of the borrower will personally guarantee the obligations of the borrower, see Guarantee: individual guarantor