Can this agreement be signed electronically?

Yes. Electronic signatures are generally enforceable under the ESIGN Act (15 U.S.C. ch. 96) and UETA where adopted, provided intent, consent, attribution, and record retention criteria are met.

When is notarization required?

Notarization is not universally required for loan agreements but is commonly required for mortgage instruments or deeds; check state recording requirements before relying solely on a signature.

What if the borrower’s name is incorrect?

A mismatched legal name can invalidate security filings and complicate enforcement; ensure names match formation documents or government IDs prior to signing.

How long must I retain the signed agreement?

Retain signed loan agreements for the contract term plus at least three years; tax or HIPAA rules may require longer retention depending on document content.

Can I correct a signed document?

Use an amendment or correction addendum signed by all parties—do not alter the original signed copy, as changes can compromise the audit trail and enforceability.

How should I verify online signers’ identity?

Use multi-factor methods appropriate to transaction risk (email+SMS, knowledge-based authentication, or proctored ID checks); higher-risk loans may require stronger identity proofing or notarization.

Electronic Signature
Templates
Miscellaneous
Borrowers Agreement Template

Borrowers Agreement Template

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

BORROWERS AGREEMENT TEMPLATE

Parties

Lender Name:

Lender Address

Borrower Name:

Borrower Address

Recitals

WHEREAS, Lender is willing to make a loan to Borrower and Borrower desires to borrow certain funds on the terms and conditions set forth herein; and

WHEREAS, the parties intend that the loan described in this Agreement be evidenced by the terms below and that Borrower will use the proceeds for the purpose set forth in the Scope of Work section; and

WHEREAS, this Agreement memorializes the parties' agreement as to the principal amount, interest, repayment schedule, and remedies for default.

Scope of Work

Purpose and Use of Funds: Borrower shall apply the loan proceeds solely for the purpose described below. Borrower represents that the funds will not be used for unlawful activities.

Payment Terms

Principal Amount:

Interest Rate (annual) Repayment Schedule

First Payment Due Date:

Regular Payment Amount (if fixed):

Late Payment

Late fee as percentage of overdue payment:

Alternatively, flat late fee amount:

Interest on overdue amounts shall accrue at the interest rate set forth above or at the maximum lawful rate, whichever is lower, from the date due until paid in full.

Term and Termination

Effective Date:

Scheduled Maturity Date:

Termination for Cause

Notice Period for Termination without Cause (days):

Confidentiality

Each party shall keep confidential and shall not disclose to any third party any non-public information received from the other party in connection with this Agreement, except as required by law or with the disclosing party's prior written consent. Confidential information does not include information that is or becomes publicly available through no fault of the receiving party, independently developed by the receiving party, or rightfully received from a third party without restriction.

Remedies: The parties acknowledge that a breach of confidentiality may cause irreparable harm for which monetary damages may be insufficient, and the non-breaching party shall be entitled to injunctive relief in addition to all other remedies.

Security

Security Interest: The parties agree that the loan is secured unsecured.

If secured, describe collateral

Representations and Warranties

Borrower represents and warrants that Borrower is duly organized and in good standing (if an entity), has full power to enter into this Agreement, and that the execution and performance of this Agreement do not violate any other agreement to which Borrower is a party.

Governing Law

This Agreement shall be governed by and construed in accordance with the laws of the State of , without regard to conflict of laws principles.

Entire Agreement

This Agreement, together with any promissory note, security agreement, and schedules executed contemporaneously, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior negotiations, understandings, and agreements between the parties, whether written or oral. Any amendment or modification must be in writing signed by both parties.

Miscellaneous Provisions

Notices shall be in writing and delivered to the addresses set forth above or to such other address as a party may designate by written notice. If any provision of this Agreement is held invalid, the remaining provisions shall remain in full force and effect.

Lender - Print Name:

By:

Date:

Borrower - Print Name:

By:

Date:

What a Borrowers Agreement Template Is and When It Applies

A Borrowers Agreement Template is a standardized contract used to document the terms under which one party (the lender) extends credit, cash, or goods to another party (the borrower). Typical provisions define the loan amount, repayment schedule, interest rate, security or collateral, covenants, events of default, remedies, and governing law. The template streamlines negotiations by presenting consistent sections for payment terms, prepayment, fees, representations, and warranties. When executed, the agreement creates enforceable obligations between the named parties, and it can be signed electronically when the transaction meets ESIGN and UETA requirements for validity.

Why using a clear Borrowers Agreement Template matters

A well-crafted template reduces ambiguity, documents borrower and lender obligations, and supports enforceability. It also preserves key risk allocations—interest, default remedies, and collateral—so parties and counsel can review consistent language quickly.

Who commonly prepares and signs this template

Typical users include parties directly involved in lending and professionals who manage loan documentation before closing.

Commercial lenders and banks that need repeatable loan documentation for underwriting and portfolio management.
Borrowers (individuals or businesses) who must confirm repayment terms, collateral, and default provisions.
Legal counsel, closing agents, and loan administrators who prepare, review, and archive the agreement.

Each user group has different priorities: lenders focus on enforceability and collateral, borrowers on payment flexibility, and counsel on compliance and state-specific formalities.

Essential sections to include in a professional template

A comprehensive Borrowers Agreement Template should include clear, labeled sections that make obligations and remedies easy to locate for all parties.

Parties

Identify full legal names and entity types for lender and borrower, including mailing and service addresses, state of formation, and taxpayer identification where applicable to avoid identity disputes.

Loan Terms

Specify principal amount, interest rate (fixed or variable), calculation method, payment schedule, grace periods, and prepayment or late fee formulas to reduce ambiguity in owed amounts.

Security

Describe collateral, security interest mechanics, perfection steps (e.g., financing statement filings), and remedies on default so the lender’s priority and enforcement path are clear.

Representations

Include borrower and lender representations and warranties about authority, accuracy of financial statements, absence of defaults, and any material contracts affecting repayment ability.

Covenants

Set affirmative and negative covenants—reporting, insurance, restrictions on further indebtedness, and material adverse change clauses to preserve credit quality between drawings.

Default & Remedies

Define events of default, cure periods, interest on overdue amounts, acceleration, collection costs, and rights to repossess or foreclose to clarify post-default procedures.

Step-by-step: completing the Borrowers Agreement Template

Follow these steps to prepare, review, and execute a loan agreement cleanly and consistently.

01

Prepare: Populate all party and loan fields accurately.
02

Review: Have counsel verify security, representations, and state-specific formalities.
03

Authenticate: Confirm signer identity using commercially reasonable methods.
04

Execute: Obtain signatures and capture audit trail or notarization if required.

Configuring an online signing workflow for the template

Set up signer order, authentication, and conditional fields to match your internal approvals and compliance needs.

Field	Configuration
Signer Order	Sequential or parallel signing order
Authentication	Email link, SMS code, or KBA as needed
Conditional Fields	Show or hide sections based on answers
Retention	Auto-archive signed copies to secure storage

Where to send and how to submit the completed agreement

Decide delivery and filing destinations before execution to streamline post-signature tasks.

Lender Records: Store executed copy in loan file and loan servicing system.
Borrower Copy: Provide borrower a dated, signed copy for their records.
Collateral Filings: File UCC-1 or mortgage instruments where required.
Third Parties: Share with counsel, auditors, or trustee as applicable.

Technical considerations for e-signing and e-submission

Verify platform features that match your authentication, audit trail, storage, and integration needs before e-signing.

Authentication: Email, SMS, or KBA options
Audit Trail: IP, timestamp, and action log
Integrations: CRM and document storage connectors

Ensure retention and access controls meet regulatory standards and internal recordkeeping policies after execution.

Key timing considerations and deadlines

Track dates that affect enforceability, funding, reporting, and tax consequences to avoid penalties and disputes.

Execution Deadline:

Date by which parties must sign per term sheet or commitment.

Funding Date:

Date lender disburses funds after execution and conditions precedent.

Repayment Milestones:

Scheduled payment due dates for principal and interest.

Tax Reporting Trigger:

Provide W-9 to payer upon request for tax reporting.

Recordation Window:

File security instrument timely where recording is required.

Typical execution milestones from drafting to retention

A standard lifecycle runs from template drafting to execution, filing, and ongoing retention—track each milestone carefully.

01

Drafting

Populate template, attach exhibits and schedules.

02

Approval

Internal and legal review for risk and compliance.

03

Execution

Signatures collected and notarization if applicable.

04

Post-Closing

Funding, filings, and document archiving complete.

Common mistakes to avoid when preparing the template

Using informal or abbreviated legal names that differ from formation documents, causing identity or UCC filing mismatches at enforcement.
Leaving payment terms vague—omitting interest calculation method, grace periods, or exact payment dates invites disputes over owed amounts.
Failing to state governing law and venue, which can lead to jurisdictional challenges and increased litigation costs when defaults occur.
Skipping conditional fields and exhibits (collateral descriptions, guaranty schedules) which can render security interests insufficient or unperfected.

Principal risks and legal consequences of an incorrect agreement

Unenforceable Terms: Ambiguous terms can make remedies unenforceable

Tax Exposure: Incorrect W-9 or TIN triggers backup withholding

Priority Loss: Improper security filings risk lender priority

Default Costs: Acceleration and collection expenses may apply

Notarization Failures: Missing notarization can affect real estate instruments

Identity Errors: Mismatched names complicate enforcement and filings

Security and compliance features to require for e-signing

Encryption: TLS 1.2/1.3 in transit; AES-256 at rest

Audit Trail: Complete IP, timestamp, and action log

Regulatory Compliance: ESIGN, UETA, SOC 2, and ISO 27001

HIPAA Support: BAA available where protected health data exists

Access Controls: Role-based permissions and SSO support

Tamper Evidence: Document integrity checks and version history

Comparing eSignature vendor pricing and key capabilities

Basic pricing and capability differences can influence the cost and compliance posture when executing loan documents electronically.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial	Varies by vendor	Varies by vendor	Varies by vendor	Varies by vendor
Bulk Send	Yes	Yes	Yes	Yes	Varies
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No
Envelope Cap	No cap	100 envelopes/user/year	Varies	Varies	Varies

Frequently asked questions about the Borrowers Agreement Template

Answers to common execution, enforceability, and filing questions to help avoid delays and legal risks.

Need help? Contact support

Can this agreement be signed electronically?
Yes. Electronic signatures are generally enforceable under the ESIGN Act (15 U.S.C. ch. 96) and UETA where adopted, provided intent, consent, attribution, and record retention criteria are met.
When is notarization required?
Notarization is not universally required for loan agreements but is commonly required for mortgage instruments or deeds; check state recording requirements before relying solely on a signature.
What if the borrower’s name is incorrect?
A mismatched legal name can invalidate security filings and complicate enforcement; ensure names match formation documents or government IDs prior to signing.
How long must I retain the signed agreement?
Retain signed loan agreements for the contract term plus at least three years; tax or HIPAA rules may require longer retention depending on document content.
Can I correct a signed document?
Use an amendment or correction addendum signed by all parties—do not alter the original signed copy, as changes can compromise the audit trail and enforceability.
How should I verify online signers’ identity?
Use multi-factor methods appropriate to transaction risk (email+SMS, knowledge-based authentication, or proctored ID checks); higher-risk loans may require stronger identity proofing or notarization.

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