Personal Loan Agreement between Friends
Personal Loan Agreement Between Friends
This Personal Loan Agreement (the "Agreement") is made and entered into this day of [Date] (the "Effective Date"), by and between [Your Name] (the "Lender") and [Friend Name] (the "Borrower").
1. LOAN AMOUNT AND PURPOSE
The Lender hereby agrees to provide a Loan to the Borrower in the principal amount of [Loan Amount]. This Loan will be used by the Borrower to cover personal expenses including but not limited to medical bills, home repairs, and education expenses.
2. REPAYMENT
2.1 The Borrower agrees to repay the principal amount in full, along with any accrued interest, by [Repayment Date]. All payments under this Agreement shall be made by the Borrower without any deduction or offset of any kind.
2.2 Payment Terms: The Borrower shall make payments in the amount of [Payment Amount] on a [Frequency] basis, beginning on [Start Date], until the Loan is fully repaid.
2.3 Late Payments: Any payment not made within [Number of Days] days of its due date shall incur a late fee of [Late Fee Amount].
3. INTEREST
The Borrower agrees to pay interest on the unpaid principal amount of the Loan from the date of this Agreement until payment in full. The annual rate of interest on the Loan will be [Interest Rate] percent per annum.
4. DEFAULT
4.1 If the Borrower fails to make any payment due under this Agreement by the stipulated due date, the Borrower will be in default under this Agreement.
4.2 Consequences of Default: Upon default, the Lender shall have the right to demand immediate repayment of the entire Loan, and the Borrower shall be liable for any costs incurred by the Lender in enforcing this Agreement, including but not limited to legal fees.
5. PREPAYMENT
The party identified as the Borrower in this agreement is given the right and opportunity to make payments on the Loan either in its entirety or partially at any moment they choose, without having to face any form of financial punishment or penalty for electing to do so.
6. NOTICES
All notices or communications required or permitted under this Agreement shall be in writing and shall be delivered personally, sent by certified mail, or emailed to the respective addresses provided below:
Lender's Address: [Your Company Address]
Borrower's Address: [Friend Address]
7. GOVERNING LAW
This Agreement shall be governed by and construed according to the laws of the state of [State] without regard to its conflict of law provisions.
8. ENTIRE AGREEMENT
This Agreement, along with any schedules or exhibits that are attached to it, represents the complete contract between the respective parties about the particular subject matter that is being discussed or dealt with in this document.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the Effective Date.
[YOUR NAME]
[DATE SIGNED]
[FRIEND NAME]
[DATE SIGNED]
