Simple Loan Agreement for Friends and Family

Minimize confusion and preserve relationships by outlining basic loan terms between individuals. This page offers a template for documenting amount, repayment schedule, and terms for personal loans outside the banking system.

Important Elements

• Loan Amount: Specify the exact sum being lent.

• Repayment Terms: Define payment schedule and interest (if any).

• Consequences of Late Payment: Include late fees or alternative dispute resolution steps.

FAQs: Personal Loan Agreements

• Is a witness necessary?
  Not always, but it can add credibility.

• Should I notarize it?
  Optional for informal agreements but advisable for larger sums.