Friends and family loan agreement
Use this document when you need to record the loan, but where you have a high level of trust with the borrower.
- Solicitor approved
- Plain English makes editing easy
- Guidance notes included
- Money back guarantee
About this document
Lending to friends and family can be a difficult.
A written agreement may seem too formal or raise questions of trust. But not using one can result in confusion about the terms, or mistaking the loan as a gift. After considering whether you want to be a lender, working out how to protect your money without seeming to question the integrity of the borrower can be challenging.
This agreement is simple in order to bridge the gap between not using an agreement at all, and using a longer, more comprehensive one. It is, however, legally binding and enforceable.
It could be used for situations such as short-term lending to a friend or family member to buy a car, or for longer period loans for a deposit on a property, or to fund an event or large purchase.
Either party may be abroad or in the UK, and the loan can be of any size.
This agreement contains no provisions for security or for a guarantor. If you want to bring in a guarantor, this document may be more suitable.
Definition and purpose of the loan
Sum of the loan and advances
Miscellaneous legal matters
This document was written by a solicitor for Net Lawman. It complies with current English law.
"I was really pleased with my recent experience of using Net Lawman. I was able to obtain important legal documents, needed to support my small business. Net Lawman understood my needs and provided fast and efficient service without incurring the significant costs of a traditional law firm. I would both recommend and use Net lawman again"Shireen Arthur
"The document was clear to read, easy and quick to use. I will recommend Net Lawman due to ease of usability."Clive Bonny
"Dedicated and professional .. the very best service I have ever experienced online."David Williams