Informal Loan Agreement Template for Denmark

The Informal Loan Agreement is designed for situations where parties need to document a loan arrangement in a legally sound but uncomplicated manner under Danish law. This document type is particularly useful for loans between family members, friends, small business owners, or other parties with established relationships who want to ensure clear terms while avoiding the complexity of formal commercial loan documentation. The agreement covers essential elements required by Danish legislation, including those stipulated in the Danish Contracts Act (Aftaleloven) and the Danish Interest Act (Renteloven). While informal in nature, it still provides necessary legal protection by clearly stating the loan amount, repayment terms, interest rates, and basic obligations of both parties. This type of agreement is commonly used for personal loans, small business financing, or family lending situations where maintaining good relationships while having clear documentation is important.

1. Parties: Identification of the lender and borrower with full legal names and addresses

2. Background: Brief context of the loan arrangement and relationship between the parties

3. Definitions: Key terms used in the agreement

4. Loan Amount: The principal amount being lent and the currency

5. Interest Rate: Agreed interest rate and calculation method

6. Repayment Terms: Payment schedule, method of payment, and due dates

7. Default: Consequences of missing payments and default interest rates

8. Termination: Conditions under which the loan can be terminated or called in early

9. Governing Law: Confirmation that Danish law governs the agreement

10. Signatures: Execution section for both parties to sign and date