Payment Plan Agreement Template

A payment plan agreement is a legal document outlining how a borrower agrees to pay back a lender over time. Payments are commonly made on a weekly or monthly basis until the debt is paid.

Payment Plan Agreement Template

A payment plan agreement is a legal document outlining how a borrower agrees to pay back a lender over time. Payments are commonly made on a weekly or monthly basis until the debt is paid.

PDF Download

Email Delivery

Word Download

Email Delivery

ODT Download

Email Delivery

Last updated February 22nd, 2024

Document Preview

A payment plan agreement is a legal document outlining how a borrower agrees to pay back a lender over time. Payments are commonly made on a weekly or monthly basis until the debt is paid.

4.5 | 99 Ratings Downloads: 14,104

Document Preview

  1. Home »
  2. Loan Agreement »
  3. Payment Plan

What to Include (7)

Optional Terms (4)

To create a more robust and effective agreement, the following conditions can be added to the agreement:

  1. Discounted Balance: A condition that allows the creditor to reduce the total balance the lender is required to pay.
  2. Late Payment Penalties: Establishes the consequences or fees should the lender miss or underpay on a payment.
  3. Prepayment Penalty: Used for regulating (or outright denying) the lender’s option to pay the balance early.
  4. Co-Signer (guarantor) : The creditor can require high-risk lenders to have a co-signer on the agreement.

Sample

Click to Copy Sample Copy to Clipboard

PAYMENT PLAN AGREEMENT

1. THE PARTIES. This Payment Plan Agreement (“Agreement”) is entered into on [DATE] , by and between:

Borrower: [BORROWER’S NAME] with a mailing address of [BORROWER’S ADDRESS] (“Borrower”), and

Lender: [LENDER’S NAME] with a mailing address of [LENDER’S ADDRESS] (“Lender”).

2. AMOUNT BORROWED. It is acknowledged that the Lender has given a loan to the Borrower in the amount of $ [AMOUNT] at an annual interest rate of [#] % for the purpose of: [REASON FOR LOAN]

3. PAYMENT SCHEDULE. Borrower agrees to make payments equal to $ [AMOUNT] towards the total debt to be made: (check one)

☐ – Weekly. Payments are to be made every [WEEKDAY] .
☐ – Monthly. Payments are to be made every [DAY OF THE MONTH] .
☐ – Other. [DESCRIBE]

Payments shall be due in accordance with the payment scheduled herein until the amount borrowed is paid.

4. LATE PAYMENTS. Payments not made within [#] day(s) after the due date may incur a late fee of: [DESCRIBE LATE FEE]

5. PRE-PAYMENT. Regarding pre-payment, the Borrower is: (check one)

☐ – Allowed to Pre-pay. Borrower can pre-pay the amount borrowed, in-full, at any time and without penalty.

☐ – Not Allowed to Pre-pray. Borrower cannot pre-pay the amount borrowed without a penalty of: [DESCRIBE PRE-PAYMENT PENALTY]

6. DEFAULT. Failure to make payments as agreed will result in a default, allowing Lender to take legal action to recover the debt. This Agreement shall be governed under the laws in the State of [STATE] .

Borrower’s Signature: _______________________ Date: __________
Print Name: _______________________

Lender’s Signature: _______________________ Date: __________
Print Name: _______________________