When it comes to borrowing or loaning money, it`s always smart to have a written agreement in place to ensure that both parties are clear on the terms and conditions of the loan. Not only does this help protect the lender`s investment, but it also ensures that the borrower understands their responsibilities and knows what they`re getting into.

If you`re considering loaning money to someone, or if you`re about to borrow money from someone, it`s a good idea to draft a loan agreement that outlines the details of the loan. This agreement should include important information such as the amount being borrowed, the interest rate (if any), the repayment schedule, and any penalties for late payments or defaulting on the loan.

To get you started, here is a sample agreement to loan money:

Loan Agreement

This Loan Agreement (“Agreement”) is entered into on [date] between [lender name] (“Lender”) and [borrower name] (“Borrower”).

Loan Amount

The Lender agrees to loan the Borrower the amount of [loan amount] (“Loan Amount”).

Interest

The Loan Amount shall accrue interest at a rate of [interest rate] percent per annum. Interest shall be calculated on a daily basis and charged to the Borrower on a monthly basis.

Repayment

The Borrower shall repay the Loan Amount to the Lender in [number of payments] equal installments of [payment amount] each, beginning on [first payment date], and continuing on the same day of each month thereafter until the Loan Amount is paid in full.

Late Payments

If the Borrower fails to make any payment on or before the due date, a late fee of [late fee amount] shall be charged. If the Borrower is more than [number of days] days late in making any payment, the Lender may declare the entire Loan Amount immediately due and payable, and may pursue any legal remedies available.

Default

If the Borrower fails to pay the Loan Amount as agreed, or if the Borrower breaches any other provision of this Agreement, the Lender may declare the entire Loan Amount immediately due and payable, and may pursue any legal remedies available.

Governing Law

This Agreement shall be governed by and construed in accordance with the laws of [state or country].

Entire Agreement

This Agreement contains the entire understanding between the Lender and the Borrower, and supersedes all prior agreements and understandings, whether written or oral.

Amendments

This Agreement may not be amended or modified except in writing signed by both the Lender and the Borrower.

In Witness Whereof, the parties have executed this Agreement as of the date first written above.

[Lender Signature]

[Borrower Signature]

By signing below, the Lender and the Borrower agree to the terms and conditions of this Loan Agreement.