Use our free Loan Agreement template to create a contract online. This document is a loan agreement between a lender and borrower.A loan agreement is a legal document between a creditor who lends money to a borrower that is repaid with interest. A personal loan agreement can protect both you and the borrower when you lend money. Use our step-by-step guide for how to write a personal loan agreement. A loan agreement is a formal written contract used whenever money is borrowed. Personal loan agreements are used when individuals lend money, not when banks or other financial institutions do. A loan agreement is a formal written contract used whenever money is borrowed. However, this can give a decent baseline for content creators or actors who are unsure how to write up an agreement. Why do I need a contract?