When two or more people need to borrow money from each other, a personal loan agreement between friends is often drawn up to ensure that everyone understands the terms and conditions of the loan. This sample template can be used as a guide when creating your agreement. The document lists the names of both the lender and the borrower, the amount of money being borrowed, and the repayment date. It also stipulates that late payments will incur a penalty fee. This agreement can be modified to fit the specific needs of your loan situation.
Personal Loan Agreement Between Friends
[Full, legal name of Payee]
[Full, legal name of Promisor]
[Loan Date]
[Total Amount of Loan]
[Final Due Date for Repayment]
Agreement Terms:
This personal loan agreement is made and entered into as of the date set forth above by and between [Borrower Name] and [Lender’s Name].
The borrower desires to borrow from a lender, and the lender is willing to lend the borrower the sum of [amount] on the terms and conditions set forth herein. The loan will be repayable in monthly installments as set forth below. All communications between the parties relating to this agreement will be in writing.
This agreement sets forth the entire understanding of the parties concerning the subject issue hereof and substitutes all prior agreements, whether written or oral.
This agreement may not be altered except in writing, signed by both parties. Each party has received self-reliant legal advice before entering into this agreement.
Both Payee and Promisor consent to the payment agreement depicted above.
Signed:
[Signature of Payee with Date]
[Signature of Promisor with Date]
[Signature of Witness or Notary with Date]