How to Write a Loan Agreement Between Friends
Meet in person.. Discuss your friend's financial history and her needs.. Set an interest rate.
Steps
1
Meet in person.
Meet in person.
2
Discuss your friend's financial history and her needs.
Discuss your friend's financial history and her needs.
3
Set an interest rate.
Set an interest rate.
4
Decide on a repayment schedule.
Decide on a repayment schedule.
5
Iron out any other issues or conditions.
Iron out any other issues or conditions.
6
Talk about penalties for late payments.
Talk about penalties for late payments.
7
Consider using a loan administration company.
Consider using a loan administration company.
8
Search for forms.
Search for forms.
9
Date the agreement.
Date the agreement.
10
Identify the parties.
Identify the parties.
11
State the purpose for the loan.
State the purpose for the loan.
12
Include a repayment schedule.
Include a repayment schedule.
13
Set forth the consequences of nonpayment.
Set forth the consequences of nonpayment.
14
Write your closing.
Write your closing.
15
Review the agreement with your friend.
Review the agreement with your friend.
16
Sign your agreement.
Sign your agreement.
17
Make copies of the signed agreement.
Make copies of the signed agreement.
18
Consider having the agreement recorded.
Consider having the agreement recorded.
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