Personal & Individual

Personal Loan Agreement

A Personal Loan Agreement documents a loan between individuals or a business and an individual. Covers loan amount, interest rate, repayment schedule, and consequences of default under Kenyan law.

Generate this document

Legally sound

Drafted to comply with Kenyan law and international common law standards.

Ready in seconds

Fill in your details and get a complete, professional document instantly.

Fully customisable

Every clause is tailored to your specific situation and requirements.

What this document covers

Lender and borrower details
Loan amount
Interest rate and type (simple or compound)
Repayment schedule and due dates
Purpose of the loan if relevant
Consequences of default
Security or collateral if any
Early repayment terms
Governing law clause

Frequently Asked Questions

Is a personal loan agreement legally enforceable in Kenya?
Yes, under the Law of Contract Act (Cap. 23). A signed personal loan agreement is enforceable. The lender can sue for repayment in court if the borrower defaults. Loans above a certain amount should be in writing and witnessed to strengthen the paper trail.
Can a private individual charge interest on a personal loan in Kenya?
Yes. Kenyan law does not prohibit private individuals from charging interest, but the rate must be agreed and stated in the loan agreement. Unconscionable interest rates can be challenged in court under equitable principles. The agreement should state whether interest is simple or compound.
Is a personal loan agreement valid in common law countries?
Yes. Personal loan agreements are enforceable across all common law jurisdictions. In some countries, consumer credit legislation (e.g. the UK Consumer Credit Act) applies to loans between individuals and imposes additional requirements for disclosure and cooling-off periods.