If you are going to borrow money from a friend or lend money to someone you know, be sure to document it in writing. Our personal loan agreement template can help. Here are some quick benefits:
For the Borrower
- Get the Loan. Provides greater leverage to the borrower when asking for a loan. If you have a loan agreement in hand for both parties to sign, this increases the chance of getting the loan.
For the Lender
- Get paid back. A written agreement provides a greater level of comfort to the lender that they will get paid back.
- Eliminate confusion. It’s easy to forget what has only been verbally agreed to. A written document keeps the arrangement clear.