Loan Agreement in New Zealand: Template and Key Clauses (2026)

A loan agreement in New Zealand is the contract under which one party, the lender, gives money to another, the borrower, who agrees to repay it, usually with interest, on agreed terms. It can be as simple as a loan between family members or as detailed as a business facility with security. The agreement covers the amount, the interest, the repayment schedule, any security, and what happens if the borrower defaults. This is general information, not legal advice. Credit and consumer law change, and every loan is different, so confirm the current position before relying on any clause. ## How New Zealand law shapes a loan agreement The law depends heavily on who is borrowing and why. The Credit Contracts and Consumer Finance Act 2003, the CCCFA, regulates consumer credit contracts, where credit is provided to an individual mainly for personal, domestic or household use. It brings disclosure duties, responsible-lending obligations and rules on fees and unreasonable terms. A plain business or commercial loan is generally outside the CCCFA, giving the parties more freedom. The Property Law Act 2007 affects mortgages over land, and the Personal Property Securities Act 1999 governs security over personal property, registered on the PPSR. <!-- [VERIFY] exact CCCFA disclosure and responsible-lending section numbers and which loans are covered before citing them --> ## A clause by clause skeleton Use this as a structure to adapt, not a finished document. ``` LOAN AGREEMENT Parties: [Lender] and [Borrower] Date: [date] 1. THE LOAN The amount lent and the purpose, if any. 2. DRAWDOWN When and how the money is advanced, in one sum or in parts. 3. INTEREST The interest rate, how it is calculated, and whether it is fixed or variable. 4. REPAYMENT The repayment schedule, the final repayment date and any early repayment rights. 5. FEES AND COSTS Any establishment or administration fees and who pays costs. 6. SECURITY Any security given, such as a mortgage over land or a security interest over personal property registered on the PPSR. 7. REPRESENTATIONS AND UNDERTAKINGS What the Borrower confirms is true and promises to do while the loan is outstanding. 8. EVENTS OF DEFAULT What counts as default, such as missed payments or insolvency, and what the Lender can then do. 9. DISCLOSURE (IF CONSUMER CREDIT) The disclosure the CCCFA requires before and during a consumer credit contract. 10. GUARANTEE (IF ANY) Any personal guarantee supporting the loan. 11. GOVERNING LAW AND DISPUTES Governed by New Zealand law; disputes by [the courts / dispute resolution scheme if consumer]. Schedule 1: Repayment Schedule

- **Security registration.** Register a mortgage over land and a PPSR security interest over personal property to protect priority.
- **Unreasonable fees.** For consumer credit, fees must not be unreasonable, and credit fees are regulated.
- **Guarantees.** A personal guarantee should be clearly explained and documented, especially where a consumer guarantor is involved. ## Common mistakes to avoid - Treating a consumer loan as if the CCCFA did not apply, missing disclosure and responsible-lending duties.
- Vague interest terms that do not say clearly how interest is calculated.
- Taking security but failing to register it on the PPSR or as a mortgage.
- No clear events of default, so the lender is unsure what it can do if payments stop.
- A guarantee that is not properly explained to the guarantor. ## Keeping loan documents in one place A lender, or a company that both borrows and lends within a group, often has several facilities, each with its own interest terms, repayment schedule, security, guarantee and maturity date, plus variations over time. When these live across email and folders, it is hard to see which loans are outstanding, what security backs them, and which repayment dates are coming up. Drafting a loan agreement, reviewing an interest or default clause, editing a repayment schedule in plain language and holding every facility with its key dates in one view can live in a single AI workspace tuned to how your company contracts. Adira is built around that workspace, running on Claude, with per-seat pricing shown up front and a 7-day trial, India-first and built to work across jurisdictions. You can read more at [adiralaw.com](https://adiralaw.com). For a single loan the skeleton above is enough on its own. The point worth keeping is that lending is easier to govern when every agreement, its security and its repayment dates stay together and current.