Lending Money Agreement Sample
When it comes to lending money, it’s always important to have a clear and concise agreement in place. This not only protects both parties involved, but it also ensures that there are no misunderstandings or miscommunications down the line. In this article, we’ll take a closer look at what a lending money agreement should cover, as well as provide a sample template for reference.
What to include in a lending money agreement:
1. Names and contact information of both parties
2. Loan amount and repayment terms (including interest rate)
3. Payment schedule and due dates
4. Consequences for late or missed payments
5. Collateral, if applicable
6. Termination clause
7. Signature lines for both parties
Sample lending money agreement:
[Insert Date]LENDING MONEY AGREEMENT BETWEEN [Insert Lender Name] AND [Insert Borrower Name]
Loan Amount: [Insert Loan Amount]
Interest Rate: [Insert Interest Rate]
Repayment Term: [Insert Repayment Term]
This agreement (the “Agreement”) is made and entered into on [Insert Date] by and between [Insert Lender Name] (the “Lender”) and [Insert Borrower Name] (the “Borrower”).
1. Loan Amount: The Lender agrees to lend the Borrower the sum of [Insert Loan Amount] (the “Loan”) on [Insert Date].
2. Interest Rate: The Loan shall accrue interest at a rate of [Insert Interest Rate] per annum.
3. Repayment Term: The Borrower shall repay the Loan in full on or before [Insert Repayment Term]. Payments shall be made in [Insert Payment Schedule] installments.
4. Late Payment: If the Borrower fails to make any payment on or before the due date, a late fee of [Insert Late Payment Fee] will be charged. If payment is not made within [Insert Number of Days] days after the due date, the entire Loan shall become due and payable, and the Lender may exercise any rights and remedies available under applicable law.
5. Collateral: There is no collateral for this Loan.
6. Termination: Either party may terminate this Agreement upon [Insert Termination Notice] days written notice to the other party.
7. Governing Law: This Agreement shall be governed by and construed in accordance with the laws of [Insert Governing Law].
8. Signature: This Agreement may be executed in counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument.
Lender: _____________________________ Date: _____________________________
[Borrower Name], Borrower: _____________________________ Date: _____________________________In conclusion, a lending money agreement is a crucial document for any borrowing or lending situation. It’s important to ensure that all terms are clearly outlined and understood by both parties. The sample agreement provided can be used as a starting point for creating your own personalized document.