Personal Loan Contract Between Family
PERSONAL LOAN CONTRACT BETWEEN FAMILY
This Personal Loan Contract ("Contract") is made and entered into this [date](the "Effective Date"), by and between [Your Name], whose address is at [Lender's Address] (the "Lender"), and [Borrower's Name], whose address is at [Borrower's Address] (the "Borrower").
1. Loan Amount and Purpose
1.1 Loan Details
The Lender, [Your Name], agrees to loan the Borrower, [Borrower's Name], the principal amount of [Principal Amount] (the "Loan"). The Borrower agrees to use the Loan solely for the stated purpose and shall not use it for any other purpose without the prior written consent of the Lender.
1.2 Loan Usage Restrictions
The Borrower acknowledges and agrees that the Loan shall be used exclusively for home renovation purposes. Any deviation from this purpose requires explicit written consent from the Lender.
1.3 Loan Disbursement
The Loan shall be disbursed to the Borrower's designated bank account within 5 business days from the Effective Date, upon the execution of this Contract.
1.4 Loan Security
In consideration of the Loan, the Borrower may provide collateral as security for the repayment of the Loan. The details of such collateral, if applicable, shall be outlined in a separate agreement between the Parties.
2. Repayment
2.1 Repayment Schedule
The Borrower agrees to repay the Loan amount, plus interest, in [Number of Installments] equal installments. The first installment shall be due on [First Payment Date], and subsequent installments shall be due on [Frequency of Payments] thereafter.
2.2 Late Payment Consequences
In the event of late payments, the Borrower understands and agrees to the additional charges or penalties as per the terms agreed upon in this Contract. The late payment fee shall be $50.
2.3 Early Repayment
The Borrower reserves the right to make early repayments without penalty, provided that written notice is given to the Lender 30 days in advance.
2.4 Payment Methods
Payments shall be made by electronic bank transfer or certified check acceptable to the Lender. The Borrower shall provide timely payment notifications and proof of payment upon request.
3. Interest
3.1 Interest Rate
The Loan shall accrue interest at the rate of 5% per annum. Interest shall be calculated based on the outstanding balance of the Loan.
3.2 Interest Calculation
Interest calculations shall be done monthly/quarterly/annually, as specified in the repayment schedule. The interest amount for each installment shall be provided in the repayment schedule.
3.3 Interest Adjustment
Should there be a situation where the loan is repaid ahead of the agreed schedule, or where a part of the loan is prepaid, the interest applicable on the loan will be revised in appropriate proportion to reflect the reduction in the outstanding balance of the loan.
4. Default
4.1 Default Definition
Should the Borrower fail to meet any payment as stipulated by the terms of this Contract, or should the Borrower violate any other provisions outlined within this Contract, such actions will be deemed as a breach of contract and will consequently result in the classification of a default on the part of the Borrower.
4.2 Lender's Remedial Actions
In the event of default, the Lender may take whatever legal action is necessary to recover the Loan's outstanding balance, including but not limited to, initiating legal proceedings.
4.3 Grace Period
The Borrower shall be granted a grace period of 10 days for any missed payment before it is considered a default, provided that the Borrower notifies the Lender of the delay and provides a valid reason for the delay.
4.4 Default Cure
Upon notification of default, the Borrower shall have the opportunity to cure the default within the grace period by making the outstanding payment along with any applicable late fees.
5. Amendment
5.1 Amendment Process
This Contract may be amended only by a written agreement signed by both Parties. Any amendments to this Contract shall be attached as an exhibit and incorporated herein.
5.2 Notice of Amendments
The Parties agree to provide reasonable notice to each other regarding any proposed amendments to this Contract. Notice shall be deemed effective if delivered via email or certified mail to the respective addresses of the Parties.
5.3 Amendment Record
A complete and detailed record, which includes all the amendments and modifications that have been made to this Contract, should be maintained. This record should then be physically attached or appended to the original Contract. This will facilitate its use as a reference point when it becomes necessary to review or revisit the terms of the Contract.
6. Governing Law
6.1 Jurisdiction
This Contract shall be governed by and construed under the laws of [Jurisdiction].
6.2 Dispute Resolution
Any disputes arising out of or in connection with this Contract shall be resolved through [Arbitration/Mediation/Litigation], as elected by the Parties. The prevailing Party shall be entitled to recover reasonable attorney fees and costs incurred in resolving the dispute.
6.3 Waiver of Jury Trial
The Parties waive their right to a trial by jury in any legal proceedings arising from or related to this Contract.
7. Entire Contract
7.1 Superseding Prior Agreements
This Contract constitutes the entire agreement between the Parties regarding the subject matter hereof and supersedes all prior discussions, agreements, or understandings, whether oral or written.
7.2 Severability
If any provision of this Contract is found to be invalid or unenforceable, the remaining provisions shall continue to be valid and enforceable to the fullest extent permitted by law.
7.3 Counterparts
This Contract may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute the same instrument.
7.4 Effective Date
This Contract shall become effective as of the Effective Date mentioned herein and shall remain in full force and effect until the Loan and all related obligations are fully repaid and satisfied by the Borrower.
IN WITNESS WHEREOF, the Parties have executed this Contract as of the date first above written.
[Your Name]
[Borrower's Name]
