A Loan Agreement Between Two Individuals is a crucial legal document used when one person lends money to another in Australia. This document is essential for protecting both parties' interests by clearly documenting the terms and conditions of the loan, including the amount borrowed, interest rate, repayment schedule, and consequences of default. It's particularly relevant when formal lending channels aren't preferred or necessary, such as family loans, friend-to-friend lending, or private investment arrangements. The agreement ensures compliance with Australian contract law principles while remaining flexible enough to accommodate various lending scenarios. It includes options for both secured and unsecured loans, can incorporate guarantors if required, and provides clear mechanisms for enforcement should issues arise. While less complex than institutional lending documents, it maintains the necessary legal framework to be enforceable in Australian courts.

1. Parties: Identifies and defines the Lender and Borrower with their full legal names and addresses

2. Background: Sets out the context of the loan agreement, stating that the Lender has agreed to lend and the Borrower has agreed to borrow the specified sum

3. Definitions: Defines key terms used throughout the agreement for clarity and consistency

4. Loan Amount and Purpose: Specifies the principal amount of the loan and its intended purpose

5. Interest Rate: Details the agreed interest rate, how it is calculated, and when it applies

6. Repayment Terms: Specifies the repayment schedule, including payment amounts, frequency, and due dates

7. Method of Payment: Defines acceptable payment methods and payment processing details

8. Early Repayment: Sets out terms and conditions for early repayment of the loan

9. Default and Consequences: Defines what constitutes a default and the consequences of defaulting

10. Representations and Warranties: Standard declarations by both parties about their capacity and authority to enter into the agreement

11. Notices: Specifies how formal communications between parties should be made and delivered

12. General Provisions: Standard boilerplate clauses including governing law, entire agreement, and amendment procedures

13. Execution: Signature blocks for both parties and witness requirements