Fill Out Legal Pennsylvania Loans Lending Forms For Free

At a minimum, your loan contract should include: Your name and the borrower's name. The date the loan was granted. The amount of money being lent. Minimum monthly payment. Payment due date. Interest rate, if you're charging interest. Consequences for defaulting on the loan.

What a personal loan agreement should include Legal names and address of both parties. Names and address of the loan cosigner (if applicable). Amount to be borrowed. Date the loan is to be provided. Repayment date. Interest rate to be charged (if applicable). Annual percentage rate (if applicable).

If you lend the money at no interest, the IRS can consider the loan a gift, making you liable for gift taxes. The repayment schedule that the borrower must follow. State whether you'll require periodic payments, a balloon payment or some combination.

A loan agreement is any written document that memorializes the lending of money. Loan agreements can take several forms. The most basic loan agreement is commonly called an "IOU." These are typically used between friends or relatives for small amounts of money, and simply state the dollar amount that is owed.

Wiedman suggests putting everything involving the loan in your written agreement: "The date of the loan, loan amount, repayment terms, interest rate, payment due dates and so forth." That said, putting everything in writing can make things awkward, but it's a safe move if you want to ensure repayment.

Loaning friends and family money is a hotly-debated topic, but one thing that is always a given ? the threshold after which the IRS gets involved. ing to the U.S. Code, that figure is $10,000. It's referred to as the ?de minimis exception? ? referring to small loans from the tax agency's perspective.