Loan Modification Agreement
A loan modification agreement is a contract between an existing lender and borrower that formally changes the terms of an already-existing loan, such as its interest rate, repayment period, or payment schedule, rather than replacing it with a new loan. Use this when a lender and borrower already have a loan in place and want to formally change its terms — for example, lowering the interest rate, extending the repayment period, or resetting the payment schedule — instead of writing a brand-new loan. This is a starting draft only, not tax or legal advice; loan modifications can have tax and lien-priority consequences, so have a lawyer or accountant review the final terms before signing, especially for larger or secured loans.
What's included
A ready-to-use loan modification agreement with signature fields already placed for Lender and Borrower. Fill in the bracketed details (like [Company Name] or [Date]) using Docracy's built-in text editor, then send it out for signature.
This is a general template for informational purposes only and does not constitute legal advice. Consult a qualified attorney to review it for your specific situation and jurisdiction before use.
Key clauses
- Identification of the original loan being modified
- Revised interest rate
- Revised repayment term and/or maturity date
- Revised payment schedule and amounts
- Confirmation that other original loan terms remain in effect
- Conditions and effective date of the modification
What you'll fill in
[Lender Name][Borrower Name][Original Loan Date][Original Principal Amount][Revised Interest Rate][Revised Repayment Term][Revised Payment Schedule/Amount][Effective Date of Modification]Legal summary
Signing a loan modification agreement legally changes specific terms of an existing loan, such as its interest rate or payment schedule, while the underlying loan and any related security remain otherwise in effect except as expressly modified. It does not create a new loan obligation but adjusts the terms of the one already in place between the same lender and borrower. Because modifications can affect tax treatment and, for secured loans, lien priority, the final terms should be reviewed by a lawyer or accountant before signing, especially for larger or secured loans.
Free for up to 2 signers, no account required. Need unlimited? Flat $10/month.
FAQ
Is this Loan Modification Agreement legally binding?
Signing through Docracy uses a simple electronic signature (SES), which is legally recognized for everyday business agreements under laws like the U.S. ESIGN Act and the EU's eIDAS regulation. This is a general template, not legal advice — for high-stakes or regulated agreements, have a qualified attorney review it for your situation.
Who needs to sign this Loan Modification Agreement?
This template includes signature fields for Lender and Borrower — already placed, so you just fill in the details and send.
Can I edit this Loan Modification Agreement before sending it?
Yes — Docracy's editor lets you edit the text, add or remove signature fields, redact sections, and reorder pages before you send it.
Do I need an account to send this Loan Modification Agreement?
No — it's free for up to 2 signers with no account required. Create a free account only if you want to save it to a dashboard or reuse it later.
Try it with an AI assistant
Paste one of these into ChatGPT, Claude, or your assistant of choice:
“Explain what typically changes in a loan modification agreement versus refinancing.”
“Help me understand what to check before agreeing to a modified interest rate and repayment schedule.”
“Generate a filled loan modification agreement using this template that extends a loan's repayment term.”
Why teams start with Docracy
“Docracy is a great product that I have tested and am using. It is easy to use, has good tools, is always up to date, and implements new features. Highly recommended.”— DACH Advisory
Free for up to 2 signers, no account required. Need unlimited? Flat $10/month.