Sample of Loan Agreement Between Two Parties

A sample of the loan agreement between two parties is a type of agreement or you can say the contract between two individuals. The agreement can be done between two borrowers or lender or it can be among the two-person which belongs to the same family. There are many types of the loan agreement which is signed by the individual like terms loan, working capital loans, facilities agreement loans and many others. The agreement can be a culprit to destroying your all the relationship to make it thoughtful and secure so that your relationship can be saved as the money always will come and goes but your precious relation will never come back once it gets broken.

Loan Agreement Format

loan agreement PDF

The loan agreement between two individuals

Writing the loan agreement is the type of legal agreement which is presented in the written way which describes the many terms and condition for the extension of the loan. Below we have provided you the tips through which you can write the agreement.

1) Purpose of loan agreement should be understood: As you know the agreement is the legal document so before signing it the reason for signing or the outcomes will be known or understood clearly.

2) Confirmation: The confirmation of both the parties’ i.e. lender and borrower for the agreement is important and try to trust your instincts and also collect all the information as well as credit details of the person with you with the proof of both income as well as the work reference.

3) Discuss with other parties about the agreement: You should discuss each and every important information about the agreement with both parties.

Loan Agreement Sample

 

loan agreement PDF

Steps for writing the loan agreement

As you are going to write the legal document for the loan, so, you have to follow the below steps in sequence while writing your agreement.

1) Suitable title: first of all write the title on the top of the letter in bold. You can write the title like “loan agreement between two individual”.

2) know the parties: now you have to mention the person who is the lender or the borrower with their all the name and contacts details.

3) Mention date: date is like the proper evidence on which day you have given or take the money from the individual to write the date on the top corner of the letter.

4) Mention the amount and the rate of interest: all the details of money as who has taken and how much money has given and what the interest will be there on the money and above all the things must be aware by both parties.

6) Insert about late fees and prepayment clause: write the terms like fine for the late payments and other things so that you can receive all the things at the time.

Loan Agreement PDF

Sample loan agreement templates free

Conclusion

When you are lending or borrowing the money from anyone then it’s really a very important thing but the agreement becomes funny when this agreement is done between two families member or between the loved ones. Sometimes the agreement becomes the crucial things when it becomes the agreement for the long time in the reason like unemployed since a long time or in the critical illness or buying a car or paying for rent and the agreement is very helpful as it is done in a legal way.

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