Loan Agreement Reviews

A loan agreement is the contract that records the terms under which one party lends money to another. It sets out the amount, repayment terms, interest, security, and what happens if the borrower defaults. For lenders, the agreement is the key to ensuring the loan is repaid. For borrowers, it defines their obligations and protects them from unfair or excessive terms.

From the lender’s perspective, the agreement should provide security, clear repayment rights, and remedies if the borrower fails to pay. From the borrower’s perspective, the agreement should ensure repayment obligations are realistic, interest and fees are transparent, and that default clauses are fair.

Quick Legal Check offers instant loan agreement reviews for just £99. Whether you are lending money to a business or borrowing personally or commercially, we provide a plain-English written review highlighting risks, missing clauses, and practical improvements from your position.

How our loan agreement review works

We have designed a simple three-step process that removes the delays, uncertainty, and high costs that come with a traditional solicitor review.

You upload your contract in Word or PDF format.,
Our AI-powered system, designed by experienced contract specialists, analyses the document in detail.
You receive a plain-English written report that identifies potential risks, missing clauses, and wording that may be unclear or open to dispute.

If you are the lender, we focus on repayment security, default remedies, and enforceability. If you are the borrower, we focus on repayment obligations, hidden fees, and the fairness of the lender’s rights.

Understanding a Loan Agreement.

A loan agreement is a legally binding contract between a lender and a borrower. It records the terms of the loan and provides a framework for repayment and enforcement.

Loan agreements can take many forms:

Personal loans – often between family or friends, where clarity prevents disputes
Commercial loans – between businesses, often involving significant sums. Usually known as facility agreements.
Secured loans – backed by assets such as property, shares, or equipment
Unsecured loans – based purely on the borrower’s promise to repay

From the lender’s point of view, the agreement should maximise certainty of repayment. From the borrower’s point of view, the agreement should avoid excessive obligations, hidden costs, and unfair enforcement rights.

Key terms that should be included

Loan amount and drawdown

This sets out how much is being lent and when it will be advanced. Lenders want control over timing; borrowers want certainty of access

Interest rate and fees

This defines the interest payable and any arrangement or penalty fees. Borrowers need transparency to avoid hidden costs. Lenders want flexibility to charge interest that reflects risk.

Repayment terms

This covers how and when repayments will be made. Borrowers should ensure instalments are affordable and clearly defined. Lenders should ensure repayment schedules are realistic and enforceable.

Hours of work

If the loan is secured, this clause details the collateral and how it can be enforced. Lenders want strong, clear security rights. Borrowers should ensure security is limited to agreed assets and released once repayment is complete.

Salary and benefits

This explains what counts as default (such as late payment or insolvency) and what rights the lender has in response. Lenders want wide triggers and strong remedies. Borrowers need to ensure remedies are fair and proportionate.

Representations and warranties

These are statements made by the borrower about their financial position and capacity to borrow. Lenders rely on them; borrowers should ensure they are accurate and not overly broad.

Covenants

These are ongoing promises, such as providing financial information or restrictions on further borrowing. Lenders benefit from strong covenants; borrowers should check they are not unduly restrictive.

Governing law and jurisdiction

This sets out which country’s law applies and where disputes will be heard. Both parties should ensure this is practical.

Typical wording suggestions

We do not provide personalised legal advice here, but we can show examples of fair, clear wording and contrast them with more problematic examples.

A balanced repayment clause might read:

“The Borrower shall repay the Loan in equal monthly instalments of £5,000 on the first day of each month commencing on 1 January 2026 until the Loan is repaid in full.”

A riskier version for borrowers could give the lender unilateral discretion to demand full repayment “at any time,” creating significant uncertainty.

A fair security clause might state:

“The Borrower charges to the Lender by way of fixed charge its property at [address], such security to be released upon full repayment of the Loan.”

An unbalanced version for lenders would allow them to seize assets beyond those originally agreed or retain security even after repayment.

Best practice for loan agreements

For lenders, best practice means ensuring the loan is clearly documented, security is enforceable, and remedies for default are strong enough to protect repayment. Interest rates, fees, and repayment schedules should be set out transparently to avoid disputes.

For borrowers, best practice means reading the agreement carefully before signing, checking that repayment terms are realistic, and ensuring security and default clauses are fair. It is also best practice to keep written records of all repayments to avoid disputes later.

Both sides should ensure the agreement is signed and dated by all parties, and that each retains a copy.

Why use Quick Legal Check instead of a solicitor

Solicitors often charge £500–£1,500 plus VAT to review a loan agreement, with turnaround times of several days. They could charge £2-3,000 plus VAT to draft one from scratch. Quick Legal Check offers a faster, more affordable alternative.

For £99, you get a full written review delivered instantly, explaining the clauses in plain English, highlighting risks, and suggesting improvements from your perspective — whether you are the lender or the borrower.

Take the next step

If you are about to sign, issue, or rely on a loan agreement, make sure you know exactly what it means for you. Upload your agreement to Quick Legal Check today and get a clear, detailed review within minutes — for just £99.

How quickly will I get my contract review?

Almost instantly. Once you upload your contract, our system analyses it and produces your full contract review report within minutes (like, maximum 10 minutes). No more waiting days for a solicitor – you get the insights you need on your contracts quickly.

Do you review agreements for both lenders and borrowers?

Yes. We adapt our review to your position in the agreement.

Can you confirm if my loan agreement is legally enforceable?

We will highlight issues that may affect enforceability and explain what they mean.

Will the other party know I used your service?

No. Our process is confidential.

Do you review secured loans as well as unsecured loans?

Yes. We review all types of loan agreements.

Do you review personal loan agreements between family members?

Yes. In fact, written agreements are especially important in personal lending to prevent disputes.