Directors Loan Agreement Template – UK

Disclaimer

The information provided here is for general illustrative purposes related to borrowing arrangements between company directors and their businesses. It does not constitute legal advice and should not replace consultation with a qualified legal professional experienced in company law or financial agreements. Laws and regulations may differ based on jurisdiction, and adjustments may be necessary to ensure compliance. The use of this example is solely at the user’s risk, and we accept no responsibility for any errors, omissions, or resulting consequences without professional legal review.

Please note: This is a sample Director’s Loan Agreement template for illustrative purposes only. Actual terms may vary based on specific arrangements and applicable laws.

Director’s Loan Agreement Sample (UK)

Parties Involved:

Company: XYZ Limited
Address: 123 Business Park, London, SW1A 1AA

Director: John Doe
Address: 456 Elm Street, London, SW2 5BQ

Loan Amount and Purpose:

The company agrees to lend the director the sum of £50,000 (the “Loan”) for the purpose of [specify purpose], under the terms outlined herein.

Repayment Terms:

The director shall repay the Loan in full within [number] months, with interest at the rate of [interest rate]% per annum, payable monthly/annually as agreed.

Interest and Charges:

Interest on the Loan shall accrue at [interest rate]% per annum, calculated on the outstanding balance and payable as per the repayment schedule.

Repayment Method:

Repayments shall be made via bank transfer to an account designated by the company, or as otherwise agreed upon.

Governing Law:

This agreement shall be governed by the laws of England and Wales. Any disputes shall be subject to the exclusive jurisdiction of the courts of England and Wales.

Additional Provisions:

• The director warrants that the Loan will be used solely for the stated purpose.
• This agreement may only be amended in writing signed by both parties.
• Failure to repay the Loan as agreed may result in legal action to recover the outstanding amounts.

London, ______________________