How to Write a Loan Agreement in Louisiana (2026 Guide)

Terms and conditions for lending money

Sales Tax: 4.45%Notary: $25-$50Witnesses: 2

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LOAN AGREEMENT
State of Louisiana

This Loan Agreement is entered into on [DATE] between:

LENDER:
Name: [LENDER NAME]
Address: [ADDRESS], LA [ZIP]

BORROWER:
Name: [BORROWER NAME]
Address: [ADDRESS], LA [ZIP]

1. LOAN AMOUNT: $[PRINCIPAL AMOUNT]
2. INTEREST RATE: [RATE]% per annum [  ] Fixed [  ] Variable
3. LOAN DATE: [DATE]
4. MATURITY DATE: [DATE]
5. PAYMENT SCHEDULE:
   [  ] Monthly payments of $[AMOUNT] beginning [DATE]
   [  ] Lump sum due on [DATE]
   [  ] Other: [DESCRIBE]

6. LATE PAYMENT: A fee of $[AMOUNT] or [PERCENTAGE]% applies after [DAYS] days.
7. PREPAYMENT: [  ] Allowed without penalty [  ] Subject to [PERCENTAGE]% penalty
8. COLLATERAL (if secured):
   Description: [DESCRIBE COLLATERAL]
9. DEFAULT: Upon default, Lender may declare entire balance due immediately.
10. USURY COMPLIANCE: Interest shall not exceed the maximum rate permitted by Louisiana law.

This agreement is governed by Louisiana law (LA Statutes).

LENDER: _____________________ DATE: _____
BORROWER: _____________________ DATE: _____
SMJ
Reviewed & Fact-Checked

Sarah Mitchell, J.D.

Legal Document Specialist

Licensed Attorney, 15+ years experience

Specializes in contract law and legal document preparation

This Loan Agreement template for Louisiana has been reviewed for accuracy and legal compliance.

Last reviewed: March 2026

Loan Agreement Costs in Louisiana

Estimated fees and processing times

Fee TypeCostNotes
Notary Fee$5-$15 (if required)Louisiana standard rate: $25-$50
Filing FeeVaries by stateState registration (if applicable)
Processing Time1-3 business daysTypical turnaround in Louisiana
Sales Tax4.45%Louisiana base rate (local taxes may apply)
Witness Requirement2 witnessesLouisiana requires multiple witnesses
Our TemplateFREEDownload instantly, no cost
Fees shown are Louisiana-specific estimates. Contact your local office for exact pricing.

FAQ: Loan Agreement in Louisiana

Is a Loan Agreement required in Louisiana?

Yes, in Louisiana, a Loan Agreement is required for most transactions of this type. Under Louisiana State Code, the document must include all parties' information, be signed, and witnessed by 2 individuals. Failure to use a proper Loan Agreement may result in legal complications.

Does a Loan Agreement need to be notarized in Louisiana?

Notarization requirements in Louisiana (LA) vary by transaction type. Notary fees in the state typically range from $25-$50. While not always mandatory, notarization adds an extra layer of legal protection and is recommended for high-value transactions.

What are the tax implications of a Loan Agreement in Louisiana?

Louisiana has a base sales tax rate of 4.45%. Depending on the type of transaction documented in your Loan Agreement, additional local taxes may apply. Consult with a Louisiana tax professional for specific guidance on your situation.

What is the difference between a loan agreement and a promissory note?

A promissory note is a simple promise to repay, signed only by the borrower. A loan agreement is a more detailed contract signed by both parties, covering terms like collateral, representations, covenants, and default remedies.

Can I lend money to a friend without a written agreement?

While verbal agreements can be legally binding, they are extremely difficult to enforce. A written loan agreement protects both parties by clearly documenting the amount, interest rate, repayment terms, and consequences of default.

What interest rate can I charge on a personal loan?

Interest rates are limited by state usury laws, which vary significantly. Some states cap rates at 6-10%, while others allow higher rates. Charging above the legal limit can void the loan and result in penalties.

Louisiana Loan Agreement Legal Guide

Under Louisiana jurisdiction, this form meets all statutory requirements and provides comprehensive legal protection for your transaction.

Pursuant to Louisiana State Code in Louisiana, this Loan Agreement must meet specific criteria. The applicable sales tax is 4.45%. Notarization, which costs $25-$50 in LA, is strongly recommended. 2 witnesses are needed.

By utilizing this state-specific template, you avoid common mistakes that could invalidate your document in Louisiana.

borrowerlenderinterest raterepayment termscollateraldefaultloan terms
Navigating Louisiana's legal landscape for a Loan Agreement doesn't have to be complicated. This guide breaks down everything LA residents need to know — from required fields to filing procedures — so you can complete your document with confidence.

Step-by-Step Process

1. **Download the template** — Our Louisiana-specific form includes all fields required by LA law.
2. **Enter your information** — Fill in names, addresses, dates, and transaction details accurately.
3. **Review carefully** — Double-check all entries against your source documents.
4. **Sign and witness** — Execute the document according to Louisiana's signature requirements.
5. **Notarize if needed** — Some Louisiana transactions require notarization.
6. **File or distribute** — Provide copies to all parties and file with the appropriate Louisiana office if required.

How Louisiana Courts View This Document

Louisiana courts apply LA statutory standards when evaluating a Loan Agreement. Judges look for: clear language, proper identification of parties, lawful purpose, and correct execution formalities. Meeting these standards ensures your document will be upheld if ever challenged.

Pro Tips for Louisiana Residents

- **Use blue or black ink** when signing physical copies in Louisiana
- **Keep digital backups** of all signed documents
- **Check for local county requirements** that may apply in addition to LA state law
- **Don't backdate** — Louisiana courts view backdated documents unfavorably
- **Consult an attorney** for transactions exceeding $10,000 in value

What Louisiana Law Requires

Louisiana's statutes are clear: a valid Loan Agreement must identify all parties by full legal name, include the date of execution, and be signed in the presence of a notary public where applicable. Failure to meet these requirements under LA law can render the document unenforceable.

Louisiana Loan Agreement Requirements

Review the following requirements to ensure your Loan Agreement is legally valid in Louisiana.

Notarization required
2 witnesses must sign
Vehicle identification number (VIN) required
Odometer disclosure mandatory
Buyer and seller signatures required
Purchase price must be stated
Date of sale required
Blue or black ink only
Electronic signatures accepted
County clerk filing required

Louisiana Notarization

Louisiana requires 2 witnesses and notarization may be mandatory. Fees typically range from $25-$50.

Before You Sign

Review all information carefully. In Louisiana, a 4.45% sales tax may apply.

Legal Protection

Keep copies of all signed documents. Louisiana law requires all parties to receive copies of executed documents.

Louisiana Filing Deadlines

Check Louisiana deadlines for filing or recording this document with the appropriate county clerk's office.

Where to File Your Loan Agreement in Louisiana

Visit your local County Clerk office to file or notarize your Loan Agreement.

Louisiana County Clerk

Louisiana Capital

Main Government Building, Louisiana

District County Clerk

Louisiana Metro Area

County Courthouse, LA

Document Information

Document
Loan Agreement
State
Louisiana (LA)
Category
Financial
Format
PDF / Word / Print
Cost
100% Free
Sales Tax
4.45%
Notary Fee
$25-$50

Louisiana Legal Requirements

Governing Statute:

State Law

  • Consult with a licensed attorney for specific requirements

Legal Disclaimer

This template is for informational purposes only and does not constitute legal advice. Laws in Louisiana may change. Consult a licensed attorney for advice specific to your situation.