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Skaityti lietuviškai →Loan agreement template - so the money comes back
Lending to a friend or family member in Lithuania? A written agreement is not a sign of distrust but protection for both. Where the sum exceeds 3,000 EUR and is paid in cash, Lithuanian law simply requires a written form - without it the debt cannot be proven by witnesses.
What must a loan agreement contain?
The parties' identities (names and personal codes), the amount and how it is transferred, interest (or an explicit “interest-free” entry), the repayment date and method, and default interest for late payment. A guarantor can be added - a person from whom the debt can be recovered if the borrower fails to pay.
Cash limits in Lithuania
From 5,000 EUR cash settlement is prohibited - larger loans must be transferred by bank. A transfer always leaves a trail and is therefore the safest way both to lend and to repay.
What default interest is lawful?
Lithuanian case law treats about 0.05% per day (roughly 18% per year) as reasonable. Substantially higher default interest may be reduced by a court.
Signed with a qualified electronic signature
Sign with Smart-ID or mobile signature. A qualified electronic signature has the same legal force as a handwritten one; the signing service is provided by Mark ID, UAB, whose information-security management system is certified to ISO/IEC 27001.
Frequently asked questions
Is a written agreement mandatory when lending money in Lithuania?
Where the amount exceeds 3,000 EUR and is paid in cash - yes, the law requires written form; without it the debt cannot be proven by witnesses in court. For smaller sums a written agreement is still strongly recommended.
Can I lend interest-free?
Yes. Interest-free loans between individuals are common; the agreement records it explicitly so no dispute arises later.
What default interest is lawful?
Case law treats about 0.05% per day (about 18% per year) as reasonable. Much higher rates may be reduced by a court.
Do I need a guarantor?
Not required. But for a large sum a guarantor greatly improves the odds of recovery: the full debt can be demanded from them without first pursuing the borrower. The agreement supports both options.
Do I have to declare interest received?
Yes. Interest received by an individual is taxable income and must be declared to the Lithuanian tax authority.
Every clause is explained in plain language inside the tool; the document can be edited, extended with your own clauses and signed with a qualified e-signature. This is not legal advice.