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When it comes to borrowing or lending money between friends or family, it`s important to establish a clear and concise agreement. A personal loan agreement outlines all aspects of the loan, including the loan amount, interest rate, repayment terms, and any other relevant details. Here`s a sample agreement for a personal loan that can help make the process smoother:

Loan Agreement between [Lender Name] and [Borrower Name]

Date: [Insert Date]

Loan Amount: [Insert Amount in Dollars]

Interest Rate: [Insert Interest Rate in Percentage]

Repayment Term: [Insert Term in Months or Years]

Payment Schedule: [Insert Schedule, e.g. Monthly or Biweekly]

1. Loan Terms

Lender agrees to lend the borrower the loan amount as outlined above, and borrower agrees to repay the loan amount plus interest according to the terms outlined in this agreement.

2. Interest and Payment

The interest rate on this loan will be [Insert Interest Rate in Percentage], which will be calculated from the date of the loan until the final payment is made. The borrower agrees to pay the loan amount plus interest in [Insert Term in Months or Years] equal installments over the course of the loan term. The payment schedule will be [Insert Schedule, e.g. Monthly or Biweekly].

3. Prepayment

The borrower may prepay the loan at any time without penalty.

4. Default and Late Payments

If the borrower fails to make a payment on or before the agreed payment date, the loan will be considered in default. In the event of a default, the borrower will be responsible for any legal or collection fees incurred by the lender.

5. Governing Law

This agreement shall be governed by and construed in accordance with the laws of [Insert State].

6. Entire Agreement

This agreement contains the entire understanding between the lender and borrower and supersedes any previous agreements or understandings.

7. Signatures of Parties

By signing this agreement, both parties agree to the terms outlined above.

Lender`s Signature: _____________________________________________

Printed Name: __________________________________________________

Date: __________________________

Borrower`s Signature: __________________________________________

Printed Name: __________________________________________________

Date: __________________________

By having a personal loan agreement in place, both the lender and borrower can rest assured that the loan will be repaid on time and in full. It`s always a good idea to consult with a legal professional to ensure that the agreement is legally binding and meets all applicable laws and regulations.