Official Minnesota Loan Agreement Form | Step-by-Step Guide

Terms and conditions for lending money

Sales Tax: 6.875%Notary: $5-$10Witnesses: 1

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LOAN AGREEMENT
State of Minnesota

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

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

BORROWER:
Name: [BORROWER NAME]
Address: [ADDRESS], MN [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 Minnesota law.

This agreement is governed by Minnesota law (MN Statutes).

LENDER: _____________________ DATE: _____
BORROWER: _____________________ DATE: _____

FAQ: Loan Agreement in Minnesota

Is a Loan Agreement required in Minnesota?

Yes, in Minnesota, a Loan Agreement is required for most transactions of this type. Under Minnesota 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 Minnesota?

Notarization requirements in Minnesota (MN) vary by transaction type. Notary fees in the state typically range from $5-$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 Minnesota?

Minnesota has a base sales tax rate of 6.875%. Depending on the type of transaction documented in your Loan Agreement, additional local taxes may apply. Consult with a Minnesota 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.

Loan Agreement Costs in Minnesota

Estimated fees and processing times

Fee Type	Cost	Notes
Notary Fee	$5-$15 (if required)	Minnesota standard rate: $5-$10
Filing Fee	Varies by state	State registration (if applicable)
Processing Time	1-3 business days	Typical turnaround in Minnesota
Sales Tax	6.875%	Minnesota base rate (local taxes may apply)
Witness Requirement	1 witness	Single witness sufficient
Our Template	FREE	Download instantly, no cost

Fees shown are Minnesota-specific estimates. Contact your local office for exact pricing.

Where to File Your Loan Agreement in Minnesota

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

Minnesota County Clerk

Minnesota Capital

Main Government Building, Minnesota

District County Clerk

Minnesota Metro Area

County Courthouse, MN

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 Minnesota has been reviewed for accuracy and legal compliance.

Last reviewed: March 2026

Minnesota Loan Agreement Requirements

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

Notarization required

1 witness 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

Minnesota Notarization

While notarization may not be required in Minnesota, it is recommended. Fees range from $5-$10.

Before You Sign

Review all information carefully. In Minnesota, a 6.875% sales tax may apply.

Legal Protection

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

Minnesota Filing Deadlines

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

Minnesota Loan Agreement Legal Guide

In Minnesota, this document is legally binding under local statutes and provides essential protection for both parties involved in the transaction.

Under Minnesota State Code, residents of Minnesota must ensure this Loan Agreement complies with all state requirements. The current sales tax rate is 6.875%, and notarization costs between $5-$10. One witness is required in MN.

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

borrowerlenderinterest raterepayment termscollateraldefaultloan terms

A properly executed Loan Agreement in Minnesota protects all parties involved and ensures compliance with MN state law. Below, we cover the critical steps, common pitfalls, and state-specific rules you should be aware of before signing.

Step-by-Step Process

1. Download the template — Our Minnesota-specific form includes all fields required by MN 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 Minnesota's signature requirements.
5. Notarize if needed — Some Minnesota transactions require notarization.
6. File or distribute — Provide copies to all parties and file with the appropriate Minnesota office if required.

Avoid These Common Mistakes

Minnesota attorneys frequently see these errors:
- Using an out-of-state template that doesn't comply with MN law
- Forgetting to include required witness signatures
- Leaving fields blank or using abbreviations
- Not retaining copies for personal records
- Failing to update documents when Minnesota law changes

Legal Validity & Enforcement

Once properly executed, your Loan Agreement is legally binding in Minnesota and enforceable in MN courts. The document remains valid for the duration specified in its terms. Minnesota courts generally uphold properly executed documents, provided they comply with applicable MN statutes.

MN Compliance Checklist

Before finalizing your Loan Agreement, verify that it meets Minnesota's legal standards:
- Full legal names and addresses of all parties
- Clear description of the subject matter
- Consideration or purpose stated explicitly
- Dated and signed by all required parties
- Notarized if mandated by MN statute

Other Forms in Minnesota

Loan Agreement in Neighboring States

Document Information

Document: Loan Agreement
State: Minnesota (MN)
Category: Financial
Format: PDF / Word / Print
Cost: 100% Free
Sales Tax: 6.875%
Notary Fee: $5-$10

Minnesota 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 Minnesota may change. Consult a licensed attorney for advice specific to your situation.