Loan Agreement with Guarantor Template (UK)

Name: Loan Agreement with Guarantor (Private Loan)
Brand: DocPilot
SKU: 842375
Price: 12.99 GBP
Availability: InStock

Loan Agreement with Guarantor (Private Loan)

A written agreement for a private, one-off loan between individuals — often family or friends — with a third person guaranteeing repayment. It records the amount, interest (or that there is none), the repayment schedule, early repayment and default, and a guarantee the lender can enforce directly against the guarantor.

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Word (.docx) + PDF, instant download
England and Wales
Last reviewed September 2026
Swap or Refund Promise — 14 days

Who it's for

Family members and friends lending money privately
Lenders who want a guarantor to stand behind the loan
Not for people lending as a business, which may need FCA authorisation

What's included

About this template — private versus regulated lending, the guarantor's role and interest
Guarantor — what they are committing to explained in plain English
Loan agreement (8 clauses): the loan table, advance of funds, repayment schedule, interest, early repayment, default, guarantee, governing law
Signatures for lender, borrower and guarantor, with a guarantor declaration

Save with a bundle: get this plus 9 more documents in the Debt and Consumer Bundle for £39.99.

See what's in the bundle →

Key points covered

For private, non-commercial loans only — lending as a business may need FCA authorisation
The guarantor is liable for the full outstanding amount if the borrower does not pay
The lender can pursue the guarantor without first exhausting remedies against the borrower
Interest-free or interest-bearing; the lender may need to declare interest for tax
Early repayment without penalty on short notice
The guarantor should take independent advice before signing

JurisdictionEngland and Wales

FormatWord (.docx) + PDF, instant download

Last reviewedSeptember 2026

DocPilot templates are drafted from current legislation and official guidance (GOV.UK, legislation.gov.uk and the relevant regulators), checked against those sources and fully re-reviewed every six months. They are not legal advice. How we make our documents →

Read the guide

📖 How to recover a debt →📖 County Court Judgments guide →

Questions

Is a loan between family members legally binding?

It can be. A written, signed agreement makes the terms and the debt much easier to prove.

What does the guarantor agree to?

To pay the outstanding amount on written demand if the borrower fails to repay. The lender does not have to chase the borrower first.

Can I charge interest?

Yes, or make it interest-free. The loan table and clause 4 cover both.

Is it in the Debt and Consumer Bundle?

Yes. The Loan Agreement with Guarantor is one of the 10 documents in the bundle.