Loan Agreement Template Between Friends

Disclaimer

The content provided is intended solely as a general example for informal lending arrangements between friends. It does not constitute legal advice and should not be relied upon as a substitute for consulting a qualified attorney experienced in personal loans or contractual agreements. Laws and regulations may vary depending on the state or jurisdiction, and adjustments may be required to ensure compliance with local requirements. The use of this example is the sole responsibility of the user, and we assume no liability for any errors, omissions, or consequences arising from its use without professional review.

This sample loan agreement between friends provides a general template; actual terms should be customized to fit specific circumstances and legal requirements.

Loan Agreement Between Friends – Sample Template

Parties Involved:

Lender: Alice Johnson
Address: 789 Maple Street, Springfield, IL 62704

Borrower: Bob Williams
Address: 321 Oak Avenue, Springfield, IL 62704

Loan Details:

The lender agrees to loan the borrower the principal amount of $5,000, which will be disbursed on __________________. The borrower agrees to repay the full amount by __________________, with no interest unless otherwise specified.

Repayment Terms:

Repayments shall be made in monthly installments of $________ starting on __________________ and continuing until the full repayment is made. Payments shall be delivered via check, electronic transfer, or other mutually agreed methods.

Conditions and Covenants:

The borrower agrees to use the loan solely for personal purposes. The lender reserves the right to request proof of such use if necessary. Both parties agree to communicate promptly regarding any issues related to repayment.

Governing Law:

This agreement shall be governed by the laws of the state of Illinois. Any disputes shall be resolved in the courts located in Springfield, Illinois.

Additional Provisions:

• Any modification to this agreement must be in writing and signed by both parties.
• The borrower acknowledges that this is a personal loan between friends and not a formal financial institution.
• Both parties agree to keep the terms of this agreement confidential unless disclosure is required by law.

Springfield, ______________________