While the borrower needs money and is in a friendly term with the lender, the lender has made a loan of 10,000/- (only ten thousand dollars) to the borrower. It is highly recommended that the notary`s agreement be certified and signed, or at least by an impartial third party. A model may contain the terms of payment that the lender wishes to have as a provision in the document. There are four repayment provisions that the borrower can offer to a lender. The credit contract may contain more than one repayment provision. Repayment plans include: Acceleration – A clause within a loan agreement that protects the lender by requiring the borrower to repay the loan immediately (both principal and accrued interest) in the event of specific conditions. Guarantee (personal) – If someone does not have enough credit to borrow money, this form allows someone else to be liable if the debt is not paid. Borrowing money can sometimes be the culprit of a friendship that dissociates between two friends. So if you`re hungry for money or you`re lending money to a friend, think about your relationship first. Money will always come and go, but once a friendship is destroyed, it sometimes disappears forever. In other words, it must be clearly presented as a legal loan letter.

It will make the agreement more serious as a whole. After that, you have to mention how the money is repaid, there is interest on it or it is interest-free. If the money is borrowed for a number of periods, include the date of each period for which the rate of borrowed money must be paid with interest or interest-free. In addition to the date, you must also include the payment method such as cheque, cash, draft application and traveller`s cheque. It is also worth mentioning the amount of the fine if the borrower does not pay the money back on the due date. The money is loaned for a period of six months. Both the borrower and the lender agreed on the terms of payment. Therefore, the payment must be made for a period of six months on the 12th of each month. The first payment date is March 12, 2014, and the last payment date is August 12, 2014. The money is borrowed at an interest rate of 6%. Therefore, the monthly payment amount is $1767.

As a result, litigation is less likely to arise from litigation and, if there is a dispute, the agreement may be what the court relies on to decide. In general, a loan agreement is more formal and less flexible than a change of sola or an IOU. This agreement is generally used for more complex payment agreements and often provides the lender with increased protection, for example. B borrower representatives, guarantees and borrower alliances. In addition, a lender can normally speed up the credit in the event of a default, which means that the lender can make the total amount of the loan, plus interest due and immediately, if the borrower misses a payment or goes bankrupt. 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. In addition, the written agreement allows the recipient to prove that the service provider has a well-defined payment schedule and has not met the schedule. The lender should read the draft loan agreement to check whether all provisions and writings are correct. The lender`s signature makes it clear that the document is read, understood and accurate. Depending on the loan chosen, a legal contract must be drawn up by specifying the terms of the loan agreement, including: interest rates are not always part of these agreements.