Family Loan Agreement Template

This Family Loan Agreement, hereby known as the “Agreement,” is entered into and made on this day of (Start.Date), hereby known as the “Effective Date,” by and between:

​[Borrower.FirstName][Borrower.LastName], with a mailing address of [Borrower.StreetAddress][Borrower.City][Borrower.State][Borrower.PostalCode], hereinafter known as the “Borrower,” and

​[Lender.FirstName][Lender.LastName], with a mailing address of [Lender.StreetAddress][Lender.City][Lender.State][Lender.PostalCode], hereinafter known as the “Lender,” who will collectively be referred to as the “Party” or “Parties.

On the Effective Date, the Borrower agrees to accept and repay the “Family Loan” given by the Lender, in full on or by the Final Loan Delivery date as pursuant to the entire terms of this Agreement.

Terms

Subject to the terms and conditions set forth herein, the Lender agrees to loan the Borrower the principal sum of $(Enter amount) (the “Loan”). The Loan shall be provided to the Borrower in the form of a check, cash, or bank transfer at the Lender’s discretion.

Repayment

The Borrower agrees to repay the Loan, plus any applicable interest, in full by (Enter.Date).

The Borrower may also prepay the Loan in full at any time without penalty.

Interest

The Loan shall bear interest at a rate of (Insert percentage)%, calculated on a monthly basis and due at the time of repayment.

Late Payments

Payment shall be considered late if not made by (Enter time) on the (Enter day) calendar day of each month. All late payments are subjected to a late fee of $(Enter amount) OR (Enter percentage)%.

Default

If the Borrower defaults on the repayment of the Loan, the Lender shall have the right to take legal action against the Borrower to recover the amount of the Loan, plus any applicable interest and late fees.

Governing Law

This Agreement follows the governing laws of the State of [Borrower.State].

Execution

IN WITNESS WHEREOF, the Parties agree that this Agreement will come into effect on (Start.Date).