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

Terms and conditions for lending money

Sales Tax: 6%Notary: $5Witnesses: 1

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LOAN AGREEMENT
State of Pennsylvania

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

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

BORROWER:
Name: [BORROWER NAME]
Address: [ADDRESS], PA [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 Pennsylvania law.

This agreement is governed by Pennsylvania law (PA Statutes).

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

FAQ: Loan Agreement in Pennsylvania

Is a Loan Agreement required in Pennsylvania?

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

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

Pennsylvania 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 Pennsylvania 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.

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 Pennsylvania has been reviewed for accuracy and legal compliance.

Last reviewed: March 2026

Where to File Your Loan Agreement in Pennsylvania

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

Philadelphia County Clerk

Philadelphia

City Hall, Philadelphia, PA 19107

Allegheny County Clerk

Pittsburgh

436 Grant St, Pittsburgh, PA 15219

Dauphin County Clerk

Harrisburg

101 Market St, Harrisburg, PA 17101

Pennsylvania Loan Agreement Legal Guide

According to Pennsylvania laws, this agreement holds legal weight once properly signed and notarized, ensuring compliance with state regulations.

For Pennsylvania (PA) residents, this Loan Agreement is governed by Pennsylvania State Code. Important details: sales tax at 6%, notary costs of $5, and a requirement for 1 witness. The document has indefinite validity once properly executed.

Using this template ensures you're protected under Pennsylvania law while saving time and money on legal fees.

borrowerlenderinterest raterepayment termscollateraldefaultloan terms

Navigating Pennsylvania's legal landscape for a Loan Agreement doesn't have to be complicated. This guide breaks down everything PA 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 Pennsylvania-specific form includes all fields required by PA 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 Pennsylvania's signature requirements.
5. Notarize if needed — Some Pennsylvania transactions require notarization.
6. File or distribute — Provide copies to all parties and file with the appropriate Pennsylvania office if required.

Pro Tips for Pennsylvania Residents

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

Enforceability in Pennsylvania

A Loan Agreement that meets all PA requirements is fully enforceable in Pennsylvania. Courts in Pennsylvania have consistently upheld documents that demonstrate clear intent, proper execution, and compliance with state formalities. Keep your original signed copy in a secure location.

Meeting Pennsylvania's Legal Threshold

For your Loan Agreement to hold up in a Pennsylvania court, it must satisfy the state's statutory requirements. PA law emphasizes clear language, mutual consent, and proper execution. We've built these requirements directly into our template.

Loan Agreement Costs in Pennsylvania

Estimated fees and processing times

Fee Type	Cost	Notes
Notary Fee	$5-$15 (if required)	Pennsylvania standard rate: $5
Filing Fee	Varies by state	State registration (if applicable)
Processing Time	1-3 business days	Typical turnaround in Pennsylvania
Sales Tax	6%	Pennsylvania base rate (local taxes may apply)
Witness Requirement	1 witness	Single witness sufficient
Our Template	FREE	Download instantly, no cost

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

Pennsylvania Loan Agreement Requirements

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

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

Pennsylvania Notarization

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

Before You Sign

Review all information carefully. In Pennsylvania, a 6% sales tax may apply.

Legal Protection

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

Pennsylvania Filing Deadlines

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

Other Forms in Pennsylvania

Loan Agreement in Neighboring States

Document Information

Document: Loan Agreement
State: Pennsylvania (PA)
Category: Financial
Format: PDF / Word / Print
Cost: 100% Free
Sales Tax: 6%
Notary Fee: $5

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