The letter must clearly state a “loan contract” in order for it to have legal value. The use of this formal mandate would also make the agreement serious. The borrower will also understand the seriousness of the agreement and will endeavour to stick to it. Finally, ask your friend to sign the agreement and give him a copy. The signature must be attested before a notary. You can also design the agreement by specifying your full name and residence address, such as this example. Gcg/wp/tt/pl/personal loan/01-14 version 1.8 ref. gcg/wp/tt/pl/personal loan/01-14 Nationality: Please note that to process your personal credit application quickly, you must lend all necessary documents and the SMS application (I, Name Payee) to the date of credit 1,000 Dollars of Promiseor Name (“Promisor”). By signing this agreement, Payee and Promisor confirm that Payee Promisor will repay with the following payment schedule. Before you write the agreement, talk to your friend and ask him how he will repay the amount you are lending. This will contribute to the development of contractual terms. Start the letter by mentioning the amount borrowed.
Since you borrow money from your personal account, you must use “I” and the borrower`s name. Avoid using a nickname for your friend. Check his Social Security number or driver`s license for his correct and full name. You must also include your name in the letter at the beginning after “I.” Renewal contract (loan) – extends the maturity date of the loan. In addition, it is preferable to have signed the letter to a notary, although it may require a small amount in most cases. If this is not possible, at least have the letter signed to the witnesses. It is also important that both parties have a copy of the agreement. I, Andrew Jones, on April 2, 2019, borrowed $2,500 from Ben Bradley.
I will repay the loan in a lump sum if I receive my income tax refund after the agreement, if the lender pays the funds to the borrower. The borrower will be tried in accordance with the agreement signed with all sanctions or judgments against them if the funds are not fully repaid. The loan agreement should clearly state how the money is repaid and what happens when the borrower is unable to repay. For example, the friend who lends the money may require the borrower to rem bourse with a cash check, while prohibiting the use of a personal cheque. A loan agreement is broader than a debt and contains clauses on the entire agreement, additional expenses and the modification process (i.e. to amend the terms of the agreement). Use a loan contract for large-scale loans or from several lenders. Use a debt note for loans from non-traditional lenders such as individuals or businesses rather than banks or credit unions.
While loans can be made between family members – a family credit contract – this form can also be used between two organizations or companies that have a business relationship.