Person to Person Loan Agreement Template

When it comes to borrowing money from a friend or family member, it`s important to have a written agreement in place. A person-to-person loan agreement template can help ensure that both parties are on the same page and that the loan is repaid according to the agreed-upon terms.

Here are a few key elements to include in a person-to-person loan agreement:

1. Loan amount: Clearly state the amount of money being borrowed.

2. Interest rate: If applicable, include the interest rate that will be charged on the loan.

3. Repayment schedule: Specify when the loan will be repaid, in what increments, and over what period of time.

4. Late payment penalties: Consider including penalties for late payments to incentivize on-time repayment.

5. Collateral: If the borrower is putting up collateral (e.g. a car) to secure the loan, be sure to detail what that collateral is and how it will be handled if the loan is not repaid.

6. Signatures: Both the borrower and lender should sign the agreement to make it legally binding.

By using a person-to-person loan agreement template, you can ensure that you have a clear understanding of the terms of the loan and minimize the risk of any misunderstandings or disagreements down the line. Whether you`re borrowing or lending money, taking the time to create a formal agreement can help protect your interests and ensure a smooth transaction.