Clear terms for a loan between two parties.
The Lender lends the Borrower £[amount], paid into the Borrower's account on [start date] (the "Principal").
The loan has a minimum lock-in of 18 months from the start date and is planned to run for 18 months (ending [date]). After the 18-month lock-in it continues on a rolling basis until either party gives 3 months' written notice to repay — the earliest notice date is [date]. The Principal is then repaid in full on the notice date.
Interest accrues at a fixed rate of 7% per year on the outstanding Principal. It starts accruing on [date] — one month after the start — and is calculated daily.
The Borrower may repay early, in whole or in part, at any time with no penalty. Any payment goes first to interest, then to the Principal.
If the Borrower misses a payment by more than 15 business days, or becomes insolvent, the full Principal and any accrued interest become immediately due.
This Agreement is governed by the laws of England & Wales, and both parties submit to the courts of England & Wales.
Once 18 months have passed, either party can give 3 months' notice to call the loan back — regardless of the planned term set above. Pick the date you'd give notice to see when repayment falls due.
This is a template, not legal advice — have a solicitor review it before signing.