Family Loan Agreement Template

The family loan agreement is a document that is made between relation by blood or marriage with one 1 acting as borrower and the other a lender.

Family loan agreement template. The payment terms in the loan agreement template. When you borrow money from your cousin or a friend for personal use is completely different when you need money for your business and you get a loan from a company or bank. A loan agreement is a written promise from a lender to loan money to someone in exchange for the borrowers promise to repay the money lent as described by the agreement. The family member that is asking for the money may be required to pay an interest rate defined as a percent compounded annually by the lending party.

Download these 9 free sample loan agreement templates to assist you in preparing your own loan agreement. The family loan agreement is a template that allows two 2 family members construct a legal contract for the lending of money to a borrower in exchange for being paid back at a later time with interest. Family loan agreement is a legal binding agreement between two family members that clearly spells out the terms of lending money to a family member with an aim or being paid back after a given duration of time with an accrued interest. A template can include the payment terms the lender wants to have as a provision in the document.

This agreement can also apply to lending money to close friends with an aim of getting back your money with an interest after a certain duration of time. Tidyform provides a large number of free and hand picked simple loan agreement template which can be used for small medium and large sized enterprises. Considering the person that is borrowing the money is family the loan is unsecured which means there are no assets behind the paper agreement. If funds are for personal use a loan contract keeps loan requirements clear.