Free Secured Loan Agreement Templates (Australia)

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Whether you lend or borrow money, loans can be a risky business if the process is not handled carefully. When taking out a secured loan, it is essential that an agreement is in place to reduce the risk.

If you don’t have the time or money available to invest in tailor-made legal aid, you can use an online secured loan model. The right template can help you understand what to include and what not to include in your document. Let’s take a closer look.

To understand what a secured loan agreement is, you must first understand exactly what a secured loan is.

A secured loan is a type of personal loan that uses collateral to protect the lender. Collateral is a high value item that the borrower risks losing to the lender if the lender cannot repay the loan as stated in the agreement. Usually the collateral offered is a house or a car, but it can also be commercial equipment, copyrights, stocks, insurance policies, or even precious metals like gold.

A secured loan agreement is a legally binding contract between a lender and a borrower. It usually describes the terms of borrowing the money and the responsibilities of both parties involved. In it, the borrower puts a high value item on the line as a form of collateral for the lender, otherwise known as collateral.

Download this template from Lawpath

It is easy to find expert approved secured loan agreement templates online. We have done some hard work for you and found top online legal services with secured loan models. It is important to note that some of these templates will simply be labeled as “loan agreement templates”. However, customizable features will allow you to use them according to your needs.

  • Right path. Among its huge library of legal templates, Lawpath offers users the ability to edit and download a loan agreement template in just a few minutes.
  • Legal deposit. For $ 4.99 / month, you can enjoy unlimited access to LawDepot’s legal templates, including a loan contract template.
  • Live. Get your hands on a legal template specially designed for secured loan contracts for a single fixed amount.
  • Legal Vision. Use LegalVision’s sample loan agreement for $ 49 or enlist the help of a lawyer for legal advice and support.
  • Netlawman. Download a sample loan agreement for $ 29 or have a lawyer draft and review your document for a fixed amount.

It is important to use a model secured loan agreement in Australia whenever a borrower provides collateral as a protection mechanism for the lender. A secured loan can take different forms. These may include:

A secured loan agreement should include a number of key clauses to ensure that both parties are protected throughout the life of the loan. You may find that the legal models available online encourage you to include the following:

  • Personal details. For legal purposes, you’ll want to include the name, address, and contact details of all parties involved in the agreement.
  • Definitions. Any well-written legal document should define all standard terms in a glossary at the beginning of the document.
  • Loan amount and interest. Be clear about how much the borrower is lending and whether interest will be paid on the unpaid amount.
  • Payment schedule. Define how often and how much payments should be made. Here it is also important to indicate an end date when the loan is to be repaid.
  • Collateral. It is important to include what the borrower is offering as collateral to the lender and in what capacity. What is the lender entitled to if the borrower does not make the payments described in the agreement?
  • Responsibilities. Remember to discuss the rights and obligations of the lender and the borrower throughout the life of the agreement.
  • Defaulted payments. What happens in the event of late payment or default? Will the borrower incur any fees or charges in certain circumstances?
  • Third party warranty. For an extra layer of protection, a lender can ask for a third party guarantee. This is where someone other than the borrower agrees to repay the loan if the borrower cannot.
  • Variations and derogations. You may want to include a clause indicating whether changes can be made to the contract in specific circumstances. This has to be agreed upon by both parties involved.

A well-structured loan agreement gives the lender the peace of mind that they will receive their loan repayment in one way or another. It can also help the borrower understand where they stand in a deal and under what circumstances their assets could be foreclosed. This is only possible if you create a tight agreement that details the borrower’s obligations to repay the loan.

It’s up to you to decide. A secured loan agreement can be a complex and important document to understand, which means that it may be worth incorporating legal advice in one way or another. This can ease the burden of drafting the document yourself by using the expertise of a lawyer. Alternatively, you may prefer to seek the help of a legal professional to verify a draft that you have already drafted.

In addition to your secured loan agreement, a lawyer can also help you draft a general collateral agreement. This is a necessary document that allows the lender to foreclose the property if the lender does not pay. To do this, lenders must register the document in the Personal Property Security Registry or PPSR.

It is important to include all of the key features described above in your secured loan agreement. This includes the loan amount, repayment schedule, interest rates, collateral details, and default terms. If you choose to use a secured loan agreement template, you may find that all the essential terms are already included.

Understand the differences between a secured loan agreement and an unsecured loan agreement

As we have seen previously, a secured loan requires the borrower to provide collateral to reduce the risk of the lender. These types of loans are most often used by banks, mortgage lenders, and credit card providers.

An unsecured loan, on the other hand, does not require collateral. Instead, an unsecured loan usually requires a high rate of interest to reduce the risk for the lender. Unsecured loans are generally smaller amounts and are more common among businesses or individuals with an established relationship.

If you are looking for a loan, it is important to weigh the pros and cons when exploring the difference between a secured loan and an unsecured loan. This will help you understand which loan is best for you.

Secured loan

Unsecured loan


  • Reduced risk for the lender.
  • Lenders can offer a lower interest rate to the borrower.
  • The borrower may be able to access higher loan amounts.
  • Available for those with a low credit rating.
  • Little or no risk to personal property and assets.
  • Simpler and faster application process.
  • Generally easier to obtain.

The inconvenients

  • Longer processing times.
  • Risk of losing valuable assets if the borrower cannot repay the loan.
  • Inflexible: The agreement will usually specify what the borrower can spend the money on.
  • Higher interest rate to mitigate risk.
  • The loans are generally for smaller amounts.
  • The lender may still be able to claim personal property if the borrower defaults.

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