The Informal Loan Agreement is designed for use in Ireland where parties wish to document a lending arrangement in a legally valid but uncomplicated manner. This document type is particularly suitable for loans between family members, friends, or small businesses where the relationship between parties is established and trust exists, but documentation is desired for clarity and protection. The agreement includes essential elements required by Irish law while maintaining flexibility and simplicity. It covers key aspects such as loan amount, repayment terms, interest (if any), and default provisions, while optional sections accommodate specific requirements like security or guarantors. While informal in nature, the agreement ensures compliance with relevant Irish legislation including the Consumer Credit Act 1995 and civil law requirements, providing a balance between legal protection and practical usability.

1. Parties: Identifies and provides full details of the lender and borrower

2. Background: Brief context of the loan arrangement and relationship between parties

3. Definitions: Defines key terms used in the agreement for clarity

4. Loan Amount and Purpose: Specifies the exact amount being lent and its intended use

5. Repayment Terms: Details of how and when the loan will be repaid, including payment schedule

6. Interest Rate: Specifies whether interest applies and if so, the rate and calculation method

7. Default and Consequences: Explains what constitutes a default and the consequences

8. Representations and Warranties: Basic statements about the borrower's ability to repay and legal capacity

9. Governing Law: Confirms Irish law governs the agreement

10. Signatures: Space for parties to sign and date the agreement