Loan agreement template:

Lender (Party A) ID number

Borrower (Party B) ID number

Party A and Party B have reached the following agreement on the basis of equal, voluntary and friendly negotiation:

1. Party B borrows RMB _____? Yuan from Party A.

2. The loan period is _____ years, starting from _____ month _____ day _____ year to _____ month _____ day _____ year.

3. When the loan period expires, Party B promises to return the entire loan immediately, otherwise, it is willing to bear all legal responsibilities.

4. Party A will deliver the loan to Party B within two days after signing this agreement.

5. If Party A fails to deliver the money to Party B on time or Party B fails to repay the money on time, the defaulting party shall pay liquidated damages of __________ yuan to the non-defaulting party.

6. This agreement is made in duplicate and shall take effect on the date when Party A and Party B sign and stamp it with their official seal (the official seal of the company). Party A and Party B each hold one copy as evidence.

Party A: ?Sign with thumbprint or seal

Party B: Sign with thumbprint or seal

Signed: ?Year, month and day

Extended information:

Legal, valid and protected private loan agreements must strictly abide by relevant provisions of national laws and administrative regulations, and adhere to the principles of voluntary mutual assistance, good faith, and fairness.

The lender’s funds must be its own funds that belong to its legitimate income, and it is prohibited to absorb other people’s funds and then lend them. The interest rate for private personal loans is determined through negotiation between the borrower and the borrower, but the interest rate negotiated by both parties must not exceed national regulations. Loans and loans between citizens and enterprises can be deemed valid as long as the intentions of both parties are true. ?

In practice, the loan contract should be deemed invalid under any of the following circumstances:

(1) The enterprise illegally raises funds from employees in the name of loan.

(2) Enterprises illegally raise funds from the society in the name of borrowing.

(3) Enterprises issue loans to the public in the name of lending.

(4) Other lending behaviors that violate laws and administrative regulations.

Interest on paid private loans shall be paid within the agreed payment period after the loan is used, and shall not be deducted in advance. If interest is deducted from the principal in advance, the loan should be returned and interest calculated based on the actual borrowed amount. According to the judicial interpretation of the Supreme People's Court, the interest rate for borrowing between citizens may appropriately exceed the relevant national borrowing interest rate, but shall not exceed four times.

Reference materials:

Baidu Encyclopedia of Private Loan Contracts