FRIEND LOAN AGREEMENT
This Friend Loan Agreement ("Agreement") is entered into on this [Day], by and between [Your Name], hereinafter referred to as the "Lender", and [Borrower's Name], hereinafter referred to as the "Borrower".
1. PURPOSE
The primary purpose of this Agreement is to formalize a loan arrangement between the Lender and Borrower who are friends. This Agreement serves to provide clarity and understanding by detailing the terms and conditions of the loan, which includes the borrowed amount, repayment terms, and interest charges if applicable. It offers legal protection by documenting the loan agreement, and peace of mind for both parties knowing the terms and conditions of the loan are enforceable.
2. PARTIES INVOLVED
The parties involved in this Friend Loan Agreement are the Lender and the Borrower. The Lender provides the loan to the Borrower for varying reasons such as covering expenses, supporting a business venture, or aiding with personal finances. The Borrower, on the other hand, is responsible for repaying the borrowed amount according to the terms established in this Agreement.
3. LOAN AMOUNT
The Lender agrees to loan the sum of [Amount] to the Borrower under the terms and conditions outlined in this Agreement. The Borrower acknowledges the loan amount and promises to repay said amount in full.
4. TERMS OF REPAYMENT
The Borrower will repay the loan amount to the Lender in [number of payments] mequal installments over [number of period], commencing on [start date]. Each amount will be paid on (specified date) of every month until the loan is paid in full. In the event of any missed payments, the Borrower agrees to make up for it no later than thirty (30) days from the scheduled payment date.
5. INTEREST CHARGES
An interest of [number] percent will be imposed on the unpaid balance of the borrowed amount. This interest will be collected together with the principal amount during the repayment period. The interest is computed from the date the loan is released until it is fully repaid.
6. LEGAL AGREEMENT
This Agreement is considered a legally binding document and can serve as evidence of the terms agreed upon by both parties in case of any disagreements or disputes in the future.
Agreed by:
Lender:
[Your Name]
Borrower:
[Borrower's Name]
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