A Sample of loan agreement between two parties is a type of contract between any individuals. They can be lender and borrower or among the family individuals. There are many types of loans signed by parties, mainly revolvers, term loans, working capital loans, facilities agreement loans etc. sample loan agreement between two people are also a culprit in destroying any relationship. As money will come and go but once the relationship is destroyed it can’t be rebuilt. So make agreements securely and thoughtfully.
Loan agreement between individuals
Writing a simple loan agreement template free is a legal agreement in the written way. This describes the terms and conditions in
which loan is extended or pain. Some tips are given for writing agreement as follows:
1. PURPOSE OF LOAN AGREEMENT SHOULD BE UNDERSTOOD: an agreement is legal documents which
should be understood properly that why this is issued or why to sign and what will be its outcomes. The
agreement should be clearly explained also that why and what amount it is based on.
2. CONFIRMATION: get confirm to both the parties that if you are signing this Sample of loan agreement between two parties you will
definitely lend money to borrowers. You have to trust your instincts. Also, collect and keep credit details
of that person with you. Keep the proof of income or work references.
3. DISCUSS WITH OTHER PARTY ABOUT AGREEMENT: it’s important to decide everything about
the agreement between parties. Know everything about the draft. Talk about the agreement and discuss repayment and loan.
STEPS FOR WRITING LOAN AGREEMENT
Consider the following format for writing the loan agreement between individuals as it plays a crucial role in mentioning
every detail in your letter in a sequence way.
1. SUITABLE TITLE: mention the title on the top of your letter in the centre. Make it in bold. You can mention it according to your ideas but for the simple title even ‘loan agreement between individuals’ is suitable for your letter.
2. KNOW THE PARTIES: while mentioning any person in letter or agreement, identify him as a borrower
or lender. And mention their contact details, address, amount correctly.
3. MENTION DATE: adding the date on the top of your letter is also important. It will keep the date as a
proof in future.
4. MENTION THE AMOUNT AND RATE OF INTEREST: identifying the loan is an important method that how
much and by whom the amount is going to be paid. Borrower and lender should be aware of it.You should also mention that when the amount is added it will be given interest on that about, either
annually or monthly. Also, describe how one can calculate the rate of interest on their amount.
5. INSERT ABOUT LATE FEES AND PREPAYMENT CLAUSE: in order to make your amount to be paid on
time without any delay, make sure that you can add some fine for late payment so that you can receive
everything on time. Mention whether the prepayment for this Sample of loan agreement between two parties is applicable or not. If yes, don’t
forget to mention its details.
Simple loan agreement template free
Click Here To Download Sample of loan agreement between two parties
CONCLUSION
Lending or borrowing money is important and sometimes also funny thing especially when it is exchanged
between our families or loved ones. Borrowing or lending sometimes become crucial as when someone
becomes unemployed for a long time or in critical illness, especially in a family. Buying a car, paying a rent,
going to have the house, buying technical gadgets for income, education in best university etc also makes
someone to go for it. It is also helpful when done in a legal way.