Loan Agreement Cost

Clients Rate Lawyers on our Platform 4.9/5 Stars
based on 2,656 reviews

Jump to Section

Need help with a Loan Agreement?

Post Project Now

Post Your Project (It's Free)

Get Bids to Compare

 Hire Your Lawyer

What does a loan agreement cost? If you need a loan or are considering providing a loan, you may ask this question. Let’s explore this question and review some general information about loan agreements and why they are necessary.

How Much Does a Loan Agreement Cost?

A loan agreement is a legally binding contract between a party borrowing and lending the money. Loan agreements can range from an informal promissory note between friends and family to a more formal loan arrangement from a financial institution for a mortgage or a car.

The purpose of a loan agreement is to lay out the terms of the loan, the responsibilities of both parties while the loan is being repaid, and to protect both parties if either side defaults on their obligations. Whether the loan is a simple promissory note or a detailed auto loan, most loan agreements will cover basic information like:

  • The total amount of money borrowed
  • Payment due dates
  • Interest rate
  • Late fees and penalties

Loan agreements are important contracts that protect the lender and the borrower throughout the loan. For this reason, lenders – whether an individual, business, or financial institution – usually choose to hire an attorney to draft the loan agreement.

Loan agreements must be drafted correctly to be legally binding and enforceable and abide by all state and federal laws that govern loans.

Based on ContractsCounsel’s marketplace data, the average cost of a loan agreement is $495.75 across all states and industries.

On-Demand Loans and Fixed Payment Loans

The two main repayment options for loans are on-demand and fixed payment. The type of loan will dictate the variety of repayment options available.

  • On-Demand Loans. An on-demand loan is used for short-term borrowing and is most often used between friends and family or for informal loans. Repayment for on-demand loans is dictated by the lender and should be laid out in the loan agreement. For example, a brother loans his sister $3,000 to buy a car, and the loan agreement requires the sister to repay the loan within three months.
  • Fixed Payment Loans. Fixed payment loans are more common for larger sums of money loaned by financial institutions. A repayment schedule is established when the loan is executed. These loans usually include interest rates, maturity dates, and penalties for late payments. A bank lends $15,000 to buy a car. It requires $200 monthly with a 5% interest fee. If the payment is late, the borrower is fined $30.

What is Included in a Loan Agreement?

The clauses and terms, and conditions of a loan agreement will vary based on the type of loan and the parties involved. For example, a mortgage for $200,000 will be more complex and include more terms than a simple promissory note for $500.

No matter the type of loan or the amount of money involved, all loan agreements should include this essential information:

  • Contact information for the lender and borrower
  • Total amount of money being borrowed
  • Effective date and length of loan
  • Payment schedule
  • Collateral (if applicable)
  • Interest rate (if applicable)
  • Penalties for non-payment
  • Governing law

If you are unsure what clauses and information need to be included in your loan agreement, contact an experienced lawyer to help guide you through the loan agreement process.

Meet some lawyers on our platform

Richard N.

76 projects on CC
View Profile

Namrita N.

13 projects on CC
View Profile

Tabetha H.

10 projects on CC
View Profile

Jeremiah C.

37 projects on CC
View Profile

Loan Agreement Projects

Loan Agreement Drafting

When two parties enter a loan agreement, it is common for the lender to provide the loan agreement. However, the lender is the party taking the most risk, so many lenders choose to hire an attorney to draft the contract. An attorney will know what terms and conditions must be included in the loan agreement to protect the lender and ensure they are repaid.

Before beginning the draft for a loan agreement, a lawyer will meet with the lender to go over the terms and conditions that the lender wants to include in the contract. Once the lawyer has a good idea of what the lender is trying to accomplish, they can begin drafting the contract.

Loan Agreement Review

Borrowers are also assuming risk when they sign a loan agreement. The borrower will be subject to the repayment terms established in the contract, and failure to repay the loan could result in the property repossessed or a civil lawsuit for breach of contract.

Before signing the loan agreement, it is recommended that the borrower hires a lawyer to review the contract. The lawyer will ensure the client’s interests are protected and the agreement is fair and reasonable.

Loan Agreement Drafting Cost

The type of loan agreement needed will heavily impact how much the loan agreement costs. For example, longer and more complicated agreements with custom terms will take more time to draft and therefore cost more legal fees than a simple promissory note.

ContractsCounsel’s marketplace data shows the average loan agreement drafting costs are $587.50 across all states.

Loan Agreement Review Cost

If a borrower hires a lawyer to review their loan agreement before signing, they will be responsible for their legal fees. However, review costs are generally less than drafting costs because they require less time from the lawyer.

ContractsCounsel’s marketplace data shows the average cost to review a commercial loan agreement is $404.00 across all states.

How Do Lawyers Charge for Loan Agreements?

Hourly Rates for Loan Agreements

The lawyer provides the client with a set hourly rate when using hourly rate. The lawyer will then bill the client at that rate for the duration of the project or case. Depending on the length of the project, the client will receive periodic bills or one final bill at the end of the representation.

Hourly rates benefit lawyers because they will be compensated for every hour spent working on a client’s project. However, clients may not like this fee structure because they will not know the total cost of legal services until the end of the case or project.

ContractsCounsel’s marketplace data shows the average hourly rate for a loan agreement lawyer ranges from $200 - $350 per hour.

Flat Fee Rates for Loan Agreements

If a lawyer is completing a specific project for a client, like drafting a loan agreement, they may choose to charge the client using a flat fee structure. The lawyer can estimate how much time the project will take to complete and quote the client a set rate for the entire job.

This structure benefits clients because they know exactly how much legal services will cost. However, for lawyers, flat fee rates can be tricky. For example, they may be unpaid for work hours if the project takes longer than expected.

ContractsCounsel’s marketplace data shows the average flat fee rate for a loan agreement is $495.75.

Get Help with a Loan Agreement

Do you need help with a loan agreement project? If so, post a project in ContractsCounsel’s marketplace to receive flat fee bids from corporate lawyers to handle your project. All lawyers on the ContractsCounsel’s platform are vetted by our team to make sure you are provided with top tier service.

How ContractsCounsel Works
Hiring a lawyer on ContractsCounsel is easy, transparent and affordable.
1. Post a Free Project
Complete our 4-step process to provide info on what you need done.
2. Get Bids to Review
Receive flat-fee bids from lawyers in our marketplace to compare.
3. Start Your Project
Securely pay to start working with the lawyer you select.

Meet some of our Lawyers

View Moss
Member Since:
November 17, 2021

Moss S.

Attorney
Free Consultation
Get Free Proposal
Boca Raton, FL
34 Yrs Experience
Licensed in FL, MA, RI
Suffolk Law School

Over 30 years of experience practicing commercial real estate and complex business litigation law.

View Abraham
Member Since:
November 18, 2021

Abraham W.

Owner
Free Consultation
Get Free Proposal
Nashville, TN
3 Yrs Experience
Licensed in NY, TN
Harvard Law School

Abraham's practice focuses on counseling emerging group companies in the technology and other commercial agreements, and assisting equity financings (specifically venture capital).

View Dave
Member Since:
November 22, 2021

Dave Y.

CO
Free Consultation
Get Free Proposal
Colorado Springs
1 Yr Experience
Licensed in CO
University of Denver

I am available for data privacy and cybersecurity projects. I am CIPP/US certified through the IAPP. I have also taken coursework focused on the GDPR through the London School of Economics. In my past career I was an intelligence officer. I am well acquainted with information security best practices and I have experience developing and implementing administrative controls for classified information and PII. I have worked extensively overseas and I am comfortable integrating with remote teams. Feel free to reach out any time if you have any additional questions on my areas of expertise or professional background.

View Peter W.
Member Since:
January 24, 2022

Peter W. Y.

Member
Free Consultation
Get Free Proposal
Virtual
23 Yrs Experience
Licensed in CT, NY, PA
Haub School of Law at Pace University

Perceptive, solution-driven counselor and experienced attorney. Record of successful verdicts, settlements, negotiations, arbitrations, mediations, and deals. Effective claims management, litigation strategy, and risk consulting. Proven ability to oversee litigation teams, communicate to stakeholders, manage multiple projects effectively, and expand business relationships. Extensive experience handling legal issues in engineering and construction, environmental litigation, corporate and contractual, and insurance issues.

View Daehoon
Member Since:
November 26, 2021

Daehoon P.

Corporate Lawyer
Free Consultation
Get Free Proposal
New York, NY
7 Yrs Experience
Licensed in NY
American University Washington College of Law

Advised startups and established corporations on a wide range of commercial and corporate matters, including cross-border deals, technology law, and M&A. Commercial and Corporate • Advised companies on commercial and corporate matters and drafted corporate documents and commercial agreements—including but not limited to —Convertible Note, SAFE, Promissory Note,Terms and Conditions, SaaS Agreement, Employment Agreement, Contractor Agreement, Joint Venture Agreement, Stock Purchase Agreement, Asset Purchase Agreement, Shareholders Agreement, Partnership Agreement, Franchise Agreement, License Agreement, and Financing Agreement. • Drafted and revised internal regulations of joint venture companies (board of directors, employment, office organization, discretional duty, internal control, accounting, fund management, etc.) • Revised joint venture agreements and master land lease agreements, and so forth. • Drafted legal memos on finance regulations Global Blockchain Projects • Advised blockchain startups ICOs, securities law, business license, regulatory compliance, and other commercial and corporate matters. • Drafted or analyzed coin or token sale agreements for global ICOs. • Assisted clients with corporate formations, including filing incorporation documents and foreign corporation registrations, drafting operating and partnership agreements, creating articles of incorporation and bylaws. Litigation and Dispute Resolution • Conducted legal research, document review, and drafted pleadings, motions, and other trial documents. • Advised the client on strategic approaches to discovery proceedings and settlement negotiation. • Assisted clients with business dispute settlements.

View Bruce
Member Since:
January 11, 2022

Bruce B.

Managing Attorney
Free Consultation
Get Free Proposal
Tampa, FL
7 Yrs Experience
Licensed in FL
University of South Carolina

Bruce Burk practice is in the area of small business, labor and employment, contracts, real estate and civil litigation. Bruce has litigated over 40 trials as well as many appeals. He prioritizes client communication and satisfaction as well as delivering high quality work product.

View Cory
Member Since:
November 29, 2021

Cory B.

Attorney-at-Law
Free Consultation
Get Free Proposal
Bellaire, OH
6 Yrs Experience
Licensed in OH
Duquesne University School of Law

Attorney Cory Barack specializes in business, real estate, probate, and energy law. He can help you with oil/gas leases, easements, property sales, drafting contracts and wills, setting up companies, and resolving disputes. He is licensed to practice law in Ohio and is located in Eastern Ohio.

View Cameron
Member Since:
January 24, 2022

Cameron S.

Partner
Free Consultation
Get Free Proposal
San Francisco
27 Yrs Experience
Licensed in CA
University of San Francisco

A commercial contracts lawyer with over 25 years of experience (both at large law firms and in-house as general counsel of a public company)

View Brittany
Member Since:
December 4, 2021

Brittany B.

Attorney
Free Consultation
Get Free Proposal
Ann Arbor, MI
8 Yrs Experience
Licensed in MI
Wayne State University Law School

Brittany advises startups and emerging and public companies at all stages of growth, with focuses on formation and corporate governance matters, securities, venture capital financings, M&A and other strategic transactions, commercial contracts and general corporate counseling. Brittany represents clients across a broad spectrum of industries, including technology, automotive, mobility, digital health, consumer products and manufacturing.

View James
Member Since:
December 5, 2021

James A.

Attorney
Free Consultation
Get Free Proposal
Birmingham, AL
5 Yrs Experience
Licensed in AL
Birmingham School of Law

James Allen is a native of Birmingham, Alabama. Mr. Allen has a considerable amount of experience in the areas of domestic relations, criminal law, family law, and general civil litigation.

View Emily
Member Since:
December 6, 2021

Emily Y.

Partner
Free Consultation
Get Free Proposal
Colorado Springs, Colorado
6 Yrs Experience
Licensed in CO
University of Colorado

I am available to advise on entity formation, contracts, and employment policies. I am also comfortable litigating business disputes including partnership disputes and employment cases. Prior to opening my current practice, I worked for several years in a small civil litigation practice focused on employment matters and civil litigation. I attended law school at the University of Colorado, and I went to the University of British Columbia for my undergraduate education.

Find the best lawyer for your project

Browse Lawyers Now

Want to speak to someone?

Get in touch below and we will schedule a time to connect!

Request a call