Does a standard Loan Agreement need to be notarized?


When you become part of an agreement, it gives you an opportunity to earn a varied interest on the invested sum. So, does a loan agreement need to be notarized? Well, the answer is not as simple as you’d think. Here’s the thing, when you set up a dedicated loan document with someone else, it is more of a standard to notarize the documents that make them official.

However, you don’t have a legal obligation to notarize the loan document. The idea of notarizing personal loans is to ensure there’s no legal issue or direct conflict in the foreseeable future. Once you’re ready to notarize your personal loan agreement, you can reach out to a public notary to guide you through the process and offer professional assistance.

Break down the complexity of a Loan Agreement

When it comes to terms of a loan agreement, make sure to find out the expiry of notarized documents. Not to mention, people usually get confused when it comes to the loan signing agent vs notary agent.

Typically, there is a lot of paperwork involved when it comes to the personal loan agreement. This is a piece of document that includes all the details about your deal with the lender. It also includes your and the lender’s responsibilities and rights.

Mostly, it is a complex and extensive document. However, you can ask a professional to break down the segments to better understand the details of the document.

Keeping that in mind, let’s dive into the basics of a loan agreement, how to notarize it, and how it is simpler and easier to notarize documents via PandaDoc Notary.

Do you need to notarize a Loan Agreement?

First and foremost, understand that personal loan agreements fall into the classification of contracts. Technically, you don’t have to notarize these documents. But if you want to make this document legally binding, then notarization is the best course of action.

Notarizing a loan agreement is a matter of signing the document in the presence of a notary public. However, before you move forward with notarizing a loan agreement, make sure to check the terms and conditions of the document.

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Why is it important to notarize Loan Agreements?

A loan agreement works as a protective piece of document, and it makes logical sense to notarize it so that the borrower and the lender legally agree to terms and conditions. If one of the parties fails to meet the agreement’s requirements, there should be immediate action.  

In short, notarizing any type of loan document works in favor of the lender and the borrower. It makes both parties responsible to uphold the requirements of the personal loans. If the borrower fails to pay back on the payment schedule, it would trigger legal action to pay back the lump sum.

What loan documents need to be notarized?

When it comes to documents notarized, the promissory note and the loan agreement are two essential documents that the principal party notarizes at the time of applying for a required loan. In most cases, your lender may ask you to present other documents to support your claims and information in the application.

For instance, borrowers often opt for a deed of trust that helps them secure a dedicated loan. The lender as well as the borrower signs the deed of trust. Practically, if the borrower defaults or for any reason is not able to pay off the lending money, the lender can foreclose on his property.

Another legal document is the mortgage which helps the borrower secure a loan. In this case, both the lender and the borrower sign the document on agreed-upon terms and conditions. And if the borrower is not able to repay the amount of the loan, the lender can foreclose on his property.

For borrowers’ sake, there are usually questions to ask before applying for a mortgage. But whether it’s a mortgage or deed of trust, both documents need proper notarization to become legally binding documents.

How to notarize a Loan Agreement?

Schedule a meeting with a public notary

First, reach out to a notary public so that you can get all the help you need to notarize a loan agreement. You can get in touch with a notary public in person or virtually.

Meet with the public notary

Second, get in touch with a public notary in-person or virtually. Oftentimes, people go directly to the workplace of the public notary. But in some cases, you can count on the public notary to come to your spot for the scheduled meeting.  

Provide proper identification

Third, provide relevant identification to the public notary so that he can confirm your ID. You can provide a photo ID card, like a student ID, passport, or driver’s license. Leave it to the notary public to confirm and validate your identity.  

Sign the Loan Agreement

Fourth, sign the loan agreement in the presence of the assigned or selected public notary. Make sure to sign all the signature fields in front of your public notary. After the public notary witnesses your signatures, he’ll add a stamp or seal to the document.

Pay notary’s fee

Last but not least, once the loan document is notarized, take care of the public notary’s fee. Usually, you won’t have to pay more than a nominal fee for a public notary’s service.

Where to get a loan document notarized?

For loan agreement notarized, like promissory notes, people find a public notary at their local bank, library, county office, courthouse, shipping store, photocopy shop, real estate agency, or law firm. You can also ask an administrative assistant for help. On the other hand, you can use a remote online notarization platform where you can schedule an appointment similarly and get assigned an online notary agent. The main difference between the two is that communicating with an online notary agent works through an audiovisual conferencing solution.

Notarize Loan Agreements online with PandaDoc Notary

PandaDoc Notary is a cloud-based platform that makes it possible for millions of individuals and businesses across the U.S. to notarize documents online. Remote online notarization is on the rise and PandaDoc Notary is helping people notarize documents in minutes.

You can schedule a variety of documents, including a loan agreement on the PandaDoc Notary platform. Interestingly, the platform also has built-in features that make remote online notarization simpler and easier for people.


Does a personal loan agreement need to be notarized?

Technically, no – but if you want to make the document legally binding, you will need to notarize it.

Does your loan agreement need to be witnessed?

For documents notarized, as long as the lender is charging interest, the loan agreement will need a witness’ signature. But if the lender cuts out the interest from the terms, then there is no need to have a witness signature.

Is the loan agreement valid without notarization?

While without notarization a loan agreement is valid, notarization makes it legally binding and enforceable.

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