When it comes to borrowing or lending money between friends, it`s always a good idea to put everything in writing. A loan agreement can help to ensure that both parties are on the same page and minimize any potential misunderstandings or conflicts in the future.
If you`re considering drafting a loan agreement between friends, here`s a sample template to get you started:
[Date]
Borrower Information:
Name:
Address:
Phone Number:
Email:
Lender Information:
Name:
Address:
Phone Number:
Email:
Loan Details:
Amount of Loan:
Interest Rate:
Repayment Schedule:
Terms and Conditions:
1. The Borrower hereby acknowledges that they owe the Lender the Amount of Loan, plus any interest as set forth in the Loan Details section.
2. The Borrower agrees to pay back the loan according to the Repayment Schedule outlined in the Loan Details section.
3. If the Borrower fails to make a payment on time, they will be subject to Late Fees as set forth in the Loan Details section.
4. This loan agreement may be amended or modified only by written agreement signed by both the Borrower and the Lender.
5. This agreement shall be binding upon and inure to the benefit of the parties hereto, their heirs, executors, administrators, successors, and assigns.
6. Any and all disputes arising out of or in connection with this agreement shall be resolved by binding arbitration in accordance with the rules of the American Arbitration Association.
By signing below, I acknowledge that I have read and understand the terms and conditions of this loan agreement.
______________________________________________________________
Borrower Signature Date
______________________________________________________________
Lender Signature Date
Note that this is just a sample template, and you may want to modify it to suit your specific needs. It`s also a good idea to have a lawyer review the agreement before signing. By taking a few extra steps to formalize your loan agreement, you can help ensure a smooth and stress-free borrowing or lending experience between friends.