Create Legal Personal Loans Templates For Free

A personal loan agreement should include the following information: Names and addresses of the lender and the borrower. Information about the loan cosigner, if applicable. Amount borrowed. Date the loan was provided. Expected repayment date. Interest rate, if applicable. Annual percentage rate (APR), if applicable.

Be Firm and Concise For example, ?I'd love to help, but I'm just not in a position to lend you the money right now.? This is short and to the point and does not give your friend or relative much room for argument. If your friend or relative has your best interests at heart, this should be the end of the discussion.

Put the agreement in writing A written loan agreement can offer some protection for both parties, as you can use it as evidence in case one person breaches the terms. For smaller loan amounts, a relatively informal written agreement signed by both parties may be sufficient.

The IRS mandates that any loan between family members be made with a signed written agreement, a fixed repayment schedule, and a minimum interest rate. (The IRS publishes Applicable Federal Rates (AFRs) monthly.)

How to make a family loan agreement The amount borrowed and how it will be used. Repayment terms, including payment amounts, frequency and when the loan will be repaid in full. The loan's interest rate. ... If the loan can be repaid early without penalty, and how much interest will be saved by early repayment.

Personal loan agreements are legally enforceable documents that hold both parties responsible for fulfilling their obligations under the contract. Failure to meet these obligations could result in legal action or damage to credit scores.