Friends and family loan agreement
This is a simple loan agreement suitable for lending to friends or family.
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.
What other customers thought
Average customer rating
By Janet Claydon 18 May 2017
the document was easy to edit, with sensible options to choose from which fitted my situation well. I also added a few extra sentences. I selected the option to have it professionally checked which was done very promptly with some minor corrections made which do not alter the meaning. The final document looks good, and is easy to understand. I hope it is legally binding as the website says, although as a layman I wouldn't know.
It saved me the time and expense of going to a solicitor but has given me some confidence that the document has been well written and I think it was good value for money.
Net Lawman responds 18 May 2017
The agreement will be legally binding. Although we are not a firm of solicitors, we do have solicitors working for us in-house, and your document was checked by one.
By William Stern 09 May 2017
Straightforward documnet that I was able to adapt easily for the purpose intended.
By Philip Stephenson 20 February 2017
Very useful document. Covers all the somewhat delicate issues involved in making a loan to a relative. Expressed in easy to understand terminology.
By Robin Tarling 24 January 2017
Website was easy to navigate and the document I chose was very easy to download and use. Would definitely use again.
By Marcel Galea 22 December 2016
Strait forward , invaluable and good value service by you people. Thank you.
By David Rogers 22 August 2016
I needed a simple loan document which I wanted to complete offline. Your service met my requirements in that the agreement was short and in plain English that was easy to understand but sufficiently comprehensive in scope.
By Sharon Taylor 27 April 2015
I decided to use your company when a friend of mine told me to download forms for the purpose off a buy to rent..I didn't know you could do such a thing.I read through your details etc and was confident this was what I was looking for.I could understand it all.I would definitely recommend Net Lawman and recommend friends and family documents . I don't think you improve your services everything was plain and simple.Thank you.
By John Winter 20 January 2015
Great Quality & easily understood service. Easy to use and fully understood by both parties.
By Anthony Emmerton 13 December 2014
I was looking for a simple Loan Agreement/Promissory Note template and found many sites where you were asked to enter the details (long winded) then they wanted a large fee to complete the document.
When I found the Friends and Family Loan agreement template for £14.40(inc VAT, less discount via promotion code) I decided to go for that. The agreement was drafted, reviewed, refined, printed and signed by my friend within half a day.
The agreement used simple language and was concise, with useful guidelines.
By Anita Lloyd 04 December 2014
The document and information were just what I needed. The agreement was short, in plain English but encouraged me to include all the points required. It is legally binding and should not offend my friend.
By Nicholas Chettle 20 June 2014
I found a contract that was appropriate to my requirements. It was easy to adapt and was acceptable to the other party too. I would recommend people to use this service because it is so quick and easy.
By Valerie Morton 23 February 2014
The document was exactly what I needed at a very reasonable cost.
By Barrie Sunderland 12 June 2015
"Confusing when first viewed, but became much clearer after consulting notes.
Instructions could be a little clearer.
The document met my needs and I used it
By Ivan Ferri 30 January 2014
Useful document it did it's job.
By Dawn Davidson 23 January 2014
Did what I needed it to do, which was to formalise a basic loan between friends, at a reasonable price.I would use the service again & would recommend to others
By Audrey Hughes 11 January 2014
Very useful for my client who was loaning on short term to his sister.It was easily downloaded and the guidance was good. It covered most eventualities and was suitable for his purposes.
By Richard Main 24 September 2014
It was helpful as I wished to learn and use the issues/provisions the draft made in order to adapt what I learned to a letter tailored to my requirement. May yet use you again in the future.
By GAIL BARNES 22 January 2014
The document gave me an idea of how to set out a agreement however I thought it would look more official and legal binding. In reality I could have typed that up myself.
Net Lawman responds 19 February 2014
We are lawyers, not typists. We write documents to give our buyer the best legal protection – and many good ideas on the commercial elements. However, this document was drawn in soft language so as to avoid upsetting a “friends and family” situation. It is no less binding for that.
"I have used you in the past and am always impressed!"Diane Bantten (Acquit Debt Recovery)
"Great service - a wide choice of comprehensive legal documents at sensible prices. The documents are easy to amend and in plain English. Fantastic!"David Robertson
"Reasonable price. Contained just the layout and info I needed. Saved time in production and of course legal fees."Don Eade