Common Contracts
1 similar Individual Loan Agreement contracts
Individual loan agreementIndividual Loan Agreement • June 13th, 2021
Anyone can run into a financial crunch from time to time and need a loan to bridge the cash-flow gap. Even if the person who needs the loan is a close friend, you should always draft a loan agreement to protect yourself from problems in the future. If the friendship sours before you collect, the loan agreement serves as the legal proof you need that the money you provided was not a gift and your friend intended to repay the funds. Without a loan agreement, people can find themselves on the short end of the collection stick. Construct the first sentence to identify yourself as the lender and your friend as the borrower. Include the amount of money you are lending and the date the loan was made. For example, “John Smith made a loan to Sally Fields on May 5, 2010, in the amount of $1,200.” Write the interest rate for the loan into the document and the method you will use to compute interest due on the loan. If you do not intend to charge interest on the loan, make that clear in the loan a
