Virginia Loan Agreement: Everything You Need to Know

Terms and conditions for lending money

Sales Tax: 5.3%Notary: $5Witnesses: 1

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LOAN AGREEMENT
State of Virginia

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

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

BORROWER:
Name: [BORROWER NAME]
Address: [ADDRESS], VA [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 Virginia law.

This agreement is governed by Virginia law (VA Statutes).

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

FAQ: Loan Agreement in Virginia

Is a Loan Agreement required in Virginia?

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

Notarization requirements in Virginia (VA) 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 Virginia?

Virginia has a base sales tax rate of 5.3%. Depending on the type of transaction documented in your Loan Agreement, additional local taxes may apply. Consult with a Virginia 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.

MCE
Reviewed & Fact-Checked

Michael Chen, Esq.

Real Estate Law Consultant

Bar Certified, Real Estate Expert

Expert in property transactions and real estate documentation

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

Last reviewed: March 2026

Virginia Loan Agreement Requirements

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

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

Virginia Notarization

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

Before You Sign

Review all information carefully. In Virginia, a 5.3% sales tax may apply.

Legal Protection

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

Virginia Filing Deadlines

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

Virginia Loan Agreement Legal Guide

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

Pursuant to Virginia State Code in Virginia, this Loan Agreement must meet specific criteria. The applicable sales tax is 5.3%. Notarization, which costs $5 in VA, is strongly recommended. 1 witness is needed.

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

borrowerlenderinterest raterepayment termscollateraldefaultloan terms
Every year, thousands of Virginia residents need a Loan Agreement for personal or business purposes. Understanding VA regulations ensures your document is enforceable and protects your interests.

Getting It Done Right in Virginia

Here's the practical approach: download, fill in your details, get signatures, and handle any VA-required notarization. Virginia 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 Virginia and enforceable in VA courts. The document remains valid for the duration specified in its terms. Virginia courts generally uphold properly executed documents, provided they comply with applicable VA statutes.

Smart Practices for VA Compliance

Virginia has specific rules that differ from neighboring states. Always verify your document against current VA statutes, especially if you're using a template from a previous year. Laws change, and what was valid last year in Virginia may need updating for 2026.

VA Compliance Checklist

Before finalizing your Loan Agreement, verify that it meets Virginia'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 VA statute

Loan Agreement Costs in Virginia

Estimated fees and processing times

Fee TypeCostNotes
Notary Fee$5-$15 (if required)Virginia standard rate: $5
Filing FeeVaries by stateState registration (if applicable)
Processing Time1-3 business daysTypical turnaround in Virginia
Sales Tax5.3%Virginia base rate (local taxes may apply)
Witness Requirement1 witnessSingle witness sufficient
Our TemplateFREEDownload instantly, no cost
Fees shown are Virginia-specific estimates. Contact your local office for exact pricing.

Where to File Your Loan Agreement in Virginia

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

Virginia County Clerk

Virginia Capital

Main Government Building, Virginia

District County Clerk

Virginia Metro Area

County Courthouse, VA

Document Information

Document
Loan Agreement
State
Virginia (VA)
Category
Financial
Format
PDF / Word / Print
Cost
100% Free
Sales Tax
5.3%
Notary Fee
$5

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