Division 7A Loan Agreement Template
Turn company-loan particulars into an editable agreement draft, with a term schedule and a list of incomplete fields.
Prepare the agreement draft
Term schedule and incomplete fields
| Particular | Entered term |
|---|---|
| Lender | Example Company Pty Ltd (Completion required: Company ACN or ABN), Completion required: Company address |
| Borrower | Example Borrower, Completion required: Borrower address |
| Principal | $100,000.00 |
| Loan date | Completion required: Loan date |
| Term | 7 years |
| Final repayment date | Completion required: Final repayment date |
| Interest | the Division 7A benchmark interest rate for the relevant income year plus 0 percentage points |
| Security | No security is created by this pattern. |
| Payment administration | Completion required: Payment method and repayment administration |
| Agreement date | Completion required: Actual agreement date |
| Lodgment day for review | Completion required: Company lodgment day |
| Company execution | Completion required: Company signing capacity and execution details |
| Borrower execution | Completion required: Borrower execution details |
| Governing law | Completion required: Governing state or territory |
Fields requiring completion
- Company ACN or ABN
- Company address
- Borrower address
- Loan date
- Payment method and repayment administration
- Actual agreement date
- Company lodgment day
- Company signing capacity and execution details
- Borrower execution details
- Governing state or territory
Your particulars stay in this tab. Reloading clears changes. Download your work before leaving.
Fill the Loan Particulars
Enter payment method, account and payment dates within the annual requirement.
Enter the company’s legal identity and the borrower’s name and capacity. The draft repeats your particulars in its term schedule.
The example records a $100,000 loan over seven years. Replace its example names and complete the blank fields before using the draft.
Blank fields remain marked “Completion required” in the draft and appear in a separate list. An invalid amount, date or term disables copy and download.
Use the earlier of the company’s tax return due date and its actual lodgment date as lodgment day. Enter actual agreement and signing dates.
Read the Agreement Pattern
The fixed pattern records one advance, a repayment obligation and annual benchmark-linked interest. It permits up to seven years for a general loan.
A term up to 25 years needs a registered mortgage over real property securing the whole loan. Net property value at inception must cover at least 110% of the loan.
This pattern charges daily interest from the loan date and resets the rate each income year. Annual repayments begin in the company income year after the loan year and reference section 109E. The margin adds interest above the benchmark.
This populated draft records your inputs. It does not establish the loan’s tax treatment or replace the mortgage documents and execution formalities.
Check the Draft Against the Records
Match the lender’s identity and signatories to corporate records. Reconcile the principal and loan date to the director loan account, bank statements and any earlier agreement.
For mortgage security, retain title and registration evidence, the inception valuation and prior-ranking liabilities. Confirm that the relevant people can execute the agreement in their stated capacities.
Record the actual agreement and signing dates. A newly populated draft cannot prove an agreement existed earlier. Review timing against the company’s lodgment day and retain the original execution record.
The ATO’s Division 7A calculator identifies the records needed to calculate minimum yearly repayments. Sections 109N and 109E of the Income Tax Assessment Act 1936 govern the term and repayment rules.
For repayment estimates, use the Division 7A loan calculator. Keep its calculation with the reviewed agreement and payment records.
Reconcile the single advance to the company ledger and bank records. Review any amalgamated loans, refinancing or other arrangements separately.