What is a item loan agreement?
Lending something valuable to a friend, relative or neighbour is generous — and it's also how friendships get strained when the item comes back scratched, late or not at all. An item loan agreement settles the questions before they come up: exactly what was lent and in what condition, when it comes back, how it should be looked after, and who pays if something goes wrong.
This template records the item, its serial number or marks, accessories lent with it, its condition at handover and an agreed replacement value. It sets the handover and return dates, how it's returned and, optionally, what it will be used for. The loan can be free or for a hire fee, with an optional deposit and a daily charge for late return. The borrower agrees to use it carefully, not lend it on, sell or modify it, and to report problems straight away, plus any rules you add for the particular item. You choose how cleaning works on return. If it's damaged, the borrower pays for repair; if it's lost or stolen, the agreed value — but not for normal wear or faults that weren't their doing. Ownership always stays with the lender. Both sign and initial each page, and the borrower's signature confirms they received the item as described.
- Best for
- Cameras, formal wear, tools, instruments, sports and camping gear
- Signed by
- The lender (owner) and the borrower
- Money
- Free or a hire fee, with an optional deposit and late charge
- Length
- 2 pages, initialled on every page
When to Use a item loan agreement
- Lending a camera and lenses to a friend for a wedding or trip
- Lending a dress, suit or costume for an event
- Lending power tools or a ladder to a neighbour
- Lending a musical instrument to a student or bandmate
- Lending camping, ski or sports equipment for a holiday
What You Fill In
20 blanks, then the name and email of each person who signs: lender, borrower.
1 The people
- Lender's full name*
- Lender's phone or email*
- Borrower's full name*
- Borrower's phone and address*
2 The item
- The item*
- Serial number or identifying marks
- Accessories and extras lent with it
- Condition when lent*
- Currency*
- Agreed replacement value*
3 The loan
- Handed over on*
- Return by*
- What it will be used for
- How it is returned*
- Particular care or use rules
- On return* Returned clean, as lent · Borrower pays for professional cleaning · Lender cleans it
4 Money
- Hire fee (if any)
- Deposit held by the Lender
- Charge per day late
- Governing law
5 Who signs
- Lender signature and date, initials on every page · The owner of the item.
- Borrower signature and date, initials on every page · The person borrowing the item.
What the item loan agreement Covers
- The item
- The loan period
- Money
- Looking after the Item
- Damage, loss and theft
- General
Using the item loan agreement, step by step
1 Describe the item precisely
Name the item and model, add the serial number or distinctive marks, and list every accessory. Record its condition honestly, including existing scratches — and take dated photos at handover.
2 Agree the value
Enter what it would cost to replace with an equivalent item in similar condition. That caps what the borrower pays if it's lost, so agree it together.
3 Set dates, money and care
Enter the handover and return dates and how it comes back. Add a hire fee, deposit or daily late charge if you want them, any special care rules, and choose how cleaning works.
4 Sign at handover
Send it for signature when you hand the item over. The borrower's signature confirms they received it in the condition described.
Tips Before You Send It
- Photos at handover and return are the best way to avoid arguments about damage.
- Check your home or gadget insurance — some policies don't cover items while someone else has them.
- For clothing, agree cleaning up front: many formal garments need professional dry cleaning.
- A deposit concentrates minds. Return it promptly with a written note of anything you keep.
Sign It Online In Minutes
- Fill in the blanks. Names, dates and amounts go straight into the agreement — the preview shows exactly where.
- Name who signs. Tick “This is me” for your own part. VergeHR builds the PDF with every signature, date and initials box on the right line, and you can check or move anything before sending.
- Send it. Each signer gets a secure link and signs from any device — no account needed. The signed PDF, with an audit trail and a Certificate of Completion, is filed in Files and emailed to everyone.
Item loan agreement: frequently asked questions
What does the borrower pay if the item is damaged?
The reasonable cost of repairing it to its condition when lent. If it's lost, stolen or not worth repairing, they pay the agreed replacement value (less any repair costs already paid) or replace it with an equivalent item you accept.
Is the borrower responsible for normal wear?
No. Normal wear from careful use, and faults that were already there or arise without misuse, are excluded.
Can I charge for the loan?
Yes — enter a hire fee, and optionally a deposit and a daily late-return charge. Leave them empty for a free loan between friends. For regular rentals as a business, an equipment rental agreement fits better.
Is an electronically signed loan agreement valid?
Electronic signatures are generally valid for ordinary agreements like this in the US (ESIGN Act and UETA), the UK, the EU (eIDAS) and Canada. VergeHR keeps an audit trail and a Certificate of Completion with the signed PDF.
Is this template free?
Yes. The template is free to use with the eSignature app in VergeHR, and the borrower doesn't need a VergeHR login to sign.