Agreement Letter for Lending / Borrowing Money

[Lender’s Name]
[Lender’s Address]
[City, State, ZIP Code]
[Date]

[Borrower’s Name]
[Borrower’s Address]
[City, State, ZIP Code]

Subject: Agreement Letter for Lending/Borrowing Money

Dear [Borrower’s Name],

This Agreement Letter (the "Agreement") is made and entered into on [Date], by and between [Lender’s Name] (hereinafter referred to as the "Lender") and [Borrower’s Name] (hereinafter referred to as the "Borrower"). This Agreement outlines the terms and conditions of a loan provided by the Lender to the Borrower.

1. Loan Details

• Loan Amount: $[Loan Amount]
• Purpose of Loan: [Optional – specify purpose, e.g., "to cover medical expenses" or "for business expansion"]
• Date of Disbursement: [Loan Disbursement Date]

2. Repayment Terms

• Repayment Schedule: The Borrower agrees to repay the loan in [Number of Payments] equal installments of $[Installment Amount] each.
• Payment Frequency: Payments will be made [e.g., monthly, bi-weekly].
• First Payment Date: [First Payment Due Date]
• Final Payment Date: [Last Payment Due Date]

3. Interest Rate

• [Choose one of the following:]
  • Interest-Free: No interest will be charged on this loan.
  • With Interest: An interest rate of [Interest Rate] % per annum will apply. Interest will be calculated and included in each installment payment.

4. Payment Method

• Payments will be made via [Specify Payment Method, e.g., bank transfer, check, cash] to the Lender’s account as follows:
  • Bank Name: [Bank Name]
  • Account Number: [Account Number]
  • Routing Number: [Routing Number]

5. Collateral (if applicable)

• The Borrower agrees to provide the following collateral to secure the loan:
  • Collateral Description: [Description of Collateral, e.g., vehicle, property, jewelry]
• The Lender reserves the right to claim the collateral if the Borrower defaults on the loan.

6. Default Terms

• If the Borrower fails to make a payment within [Number of Days] days of the due date, a late fee of $[Late Fee Amount] will be charged.
• If the Borrower fails to make [Number of Missed Payments] consecutive payments, the loan will be considered in default, and the Lender reserves the right to take legal action to recover the outstanding balance.

7. Early Repayment

• The Borrower may repay the loan in full at any time without incurring penalties.

8. Governing Law

• This Agreement shall be governed by and construed in accordance with the laws of [State/Country].

Signatures

By signing below, both parties agree to the terms and conditions of this Agreement.

[Lender’s Name]
Signature: ___________________________
Date: _______________________________

[Borrower’s Name]
Signature: ___________________________
Date: _______________________________

[Lender’s Name]
[Lender’s Address]
[City, State, ZIP Code]
[Date]

[Borrower’s Name]
[Borrower’s Address]
[City, State, ZIP Code]

Subject: Loan Agreement Between Lender and Borrower

Dear [Borrower’s Name],

This Loan Agreement Letter (“Agreement”) is made and entered into on [Date], by and between [Lender’s Name] (the “Lender”) and [Borrower’s Name] (the “Borrower”), for the purpose of formalizing the terms and conditions under which the Lender agrees to provide a loan to the Borrower.

1. Loan Details

• Loan Amount: $[Loan Amount]
• Loan Purpose: [Optional – Briefly describe purpose, e.g., “for educational expenses” or “to start a small business”]
• Date of Loan Disbursement: [Date of Disbursement]

2. Repayment Terms

• Installment Amount: $[Installment Amount]
• Payment Frequency: [e.g., Monthly]
• Repayment Schedule: The Borrower agrees to repay the loan in [Number of Installments] equal installments beginning on [First Payment Date] and continuing on the [specific date, e.g., 15th] of each subsequent month.
• Grace Period: A grace period of [Number of Days, e.g., 5 days] will apply to each installment payment. Payments made within this period will not incur penalties.

3. Interest

• The loan will carry an annual interest rate of [Interest Rate, e.g., 5% per annum], calculated on the outstanding balance.
• Interest is included in each installment as part of the total payment.

4. Late Payments and Penalties

• If the Borrower fails to make a payment by the end of the grace period, a late payment fee of $[Late Fee Amount] will be charged.
• If payments are more than [Number of Missed Payments] installments overdue, the loan will be considered in default, and the Lender reserves the right to take legal action.

5. Collateral (if applicable)

• As security for this loan, the Borrower agrees to provide collateral as described below:
  • Description of Collateral: [Detailed description, e.g., “2018 Toyota Corolla, VIN 123ABC” or “gold necklace valued at $X”].
• The Lender may take possession of the collateral if the Borrower defaults on the loan.

6. Co-Signer Agreement (if applicable)

• A co-signer is required for this loan to provide additional security. The co-signer will be legally obligated to repay the loan in the event the Borrower is unable to do so.
  • Co-Signer Name: [Co-Signer’s Full Name]
  • Co-Signer Contact Information: [Address, Phone Number]

7. Early Repayment

• The Borrower may repay the loan in full at any time without penalty. Early repayment will reduce the total interest owed.

8. Default Conditions

• The Borrower will be considered in default if:
  • Payments are overdue by [Number of Days] days beyond the grace period.
  • The Borrower breaches any other terms of this Agreement.
• In case of default, the Lender has the right to recover the outstanding balance, late fees, and any legal costs incurred.

9. Dispute Resolution

• Any disputes arising under this Agreement will first be resolved through mediation. If mediation is unsuccessful, disputes will be resolved in accordance with the laws of [State/Country].

10. Governing Law

• This Agreement is governed by the laws of [State/Country].

Signatures

By signing this Agreement, the Lender and Borrower agree to the terms outlined herein.

Lender’s Signature
Name: ___________________________
Signature: ________________________
Date: ___________________________

Borrower’s Signature
Name: ___________________________
Signature: ________________________
Date: ___________________________

Co-Signer’s Signature (if applicable)
Name: ___________________________
Signature: ________________________
Date: ___________________________

Witness Signatures (Optional)

Witness 1:
Name: ___________________________
Signature: ________________________
Date: ___________________________

Witness 2:
Name: ___________________________
Signature: ________________________
Date: ___________________________