Official Michigan Loan Agreement Form | Step-by-Step Guide
Terms and conditions for lending money
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LOAN AGREEMENT State of Michigan This Loan Agreement is entered into on [DATE] between: LENDER: Name: [LENDER NAME] Address: [ADDRESS], MI [ZIP] BORROWER: Name: [BORROWER NAME] Address: [ADDRESS], MI [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 Michigan law. This agreement is governed by Michigan law (MI Statutes). LENDER: _____________________ DATE: _____ BORROWER: _____________________ DATE: _____
Loan Agreement Costs in Michigan
Estimated fees and processing times
| Fee Type | Cost | Notes |
|---|---|---|
| Notary Fee | $5-$15 (if required) | Michigan standard rate: $10 |
| Filing Fee | Varies by state | State registration (if applicable) |
| Processing Time | 1-3 business days | Typical turnaround in Michigan |
| Sales Tax | 6% | Michigan base rate (local taxes may apply) |
| Witness Requirement | 1 witness | Single witness sufficient |
| Our Template | FREE | Download instantly, no cost |
FAQ: Loan Agreement in Michigan
Is a Loan Agreement required in Michigan?
Yes, in Michigan, a Loan Agreement is required for most transactions of this type. Under Michigan State Code, the document must include all parties' information, be signed, and witnessed by at least one individual. Failure to use a proper Loan Agreement may result in legal complications.
Does a Loan Agreement need to be notarized in Michigan?
Notarization requirements in Michigan (MI) vary by transaction type. Notary fees in the state typically range from $10. 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 Michigan?
Michigan has a base sales tax rate of 6%. Depending on the type of transaction documented in your Loan Agreement, additional local taxes may apply. Consult with a Michigan 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.
Jennifer Rodriguez, J.D.
Estate Planning Attorney
Licensed in 5 states, 12+ years experience
Focuses on wills, trusts, and power of attorney documents
This Loan Agreement template for Michigan has been reviewed for accuracy and legal compliance.
Last reviewed: March 2026
Michigan Loan Agreement Legal Guide
Under Michigan jurisdiction, this form meets all statutory requirements and provides comprehensive legal protection for your transaction.
Michigan law (Michigan State Code) governs this Loan Agreement. Key financial considerations include a 6% sales tax rate and notary fees of $10. The document requires 1 witness and remains valid indefinite.
Ensure your transaction is legally sound in Michigan with this expertly crafted, state-compliant template.
Getting It Done Right in Michigan
Here's the practical approach: download, fill in your details, get signatures, and handle any MI-required notarization. Michigan makes the process relatively straightforward, but attention to detail matters. Keep at least two copies — one for each party involved.
Legal Validity & Enforcement
Once properly executed, your Loan Agreement is legally binding in Michigan and enforceable in MI courts. The document remains valid indefinitely unless revoked or superseded. Michigan courts generally uphold properly executed documents, provided they comply with applicable MI statutes.
Avoid These Common Mistakes
Michigan attorneys frequently see these errors:
- Using an out-of-state template that doesn't comply with MI law
- Forgetting to include required witness signatures
- Leaving fields blank or using abbreviations
- Not retaining copies for personal records
- Failing to update documents when Michigan law changes
Meeting Michigan's Legal Threshold
For your Loan Agreement to hold up in a Michigan court, it must satisfy the state's statutory requirements. MI law emphasizes clear language, mutual consent, and proper execution. We've built these requirements directly into our template.
Once properly executed, your Loan Agreement is legally binding in Michigan and enforceable in MI courts. The document remains valid indefinitely unless revoked or superseded. Michigan courts generally uphold properly executed documents, provided they comply with applicable MI statutes.
Avoid These Common Mistakes
Michigan attorneys frequently see these errors:
- Using an out-of-state template that doesn't comply with MI law
- Forgetting to include required witness signatures
- Leaving fields blank or using abbreviations
- Not retaining copies for personal records
- Failing to update documents when Michigan law changes
Meeting Michigan's Legal Threshold
For your Loan Agreement to hold up in a Michigan court, it must satisfy the state's statutory requirements. MI law emphasizes clear language, mutual consent, and proper execution. We've built these requirements directly into our template.
For your Loan Agreement to hold up in a Michigan court, it must satisfy the state's statutory requirements. MI law emphasizes clear language, mutual consent, and proper execution. We've built these requirements directly into our template.
Michigan Loan Agreement Requirements
Review the following requirements to ensure your Loan Agreement is legally valid in Michigan.
Michigan Notarization
While notarization may not be required in Michigan, it is recommended. Fees range from $10.
Before You Sign
Review all information carefully. In Michigan, a 6% sales tax may apply.
Legal Protection
Keep copies of all signed documents. Michigan law requires all parties to receive copies of executed documents.
Michigan Filing Deadlines
Check Michigan deadlines for filing or recording this document with the appropriate county clerk's office.
Where to File Your Loan Agreement in Michigan
Visit your local County Clerk office to file or notarize your Loan Agreement.
Wayne County Clerk
Detroit
2 Woodward Ave, Detroit, MI 48226
Kent County Clerk
Grand Rapids
300 Monroe Ave NW, Grand Rapids, MI 49503
Ingham County Clerk
Lansing
341 S Jefferson St, Mason, MI 48854
Other Forms in Michigan
Loan Agreement in Neighboring States
Document Information
- Document
- Loan Agreement
- State
- Michigan (MI)
- Category
- Financial
- Format
- PDF / Word / Print
- Cost
- 100% Free
- Sales Tax
- 6%
- Notary Fee
- $10
Michigan 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 Michigan may change. Consult a licensed attorney for advice specific to your situation.