Family Loan Agreement Template

Disclaimer

The content provided is intended solely as a general example for informational purposes related to personal loan agreements within families. It does not constitute legal advice and should not be relied upon as a substitute for consulting a qualified attorney specializing in family or contract law. Laws and regulations vary based on jurisdiction, and adjustments may be necessary to ensure compliance. The use of this example is the user’s responsibility, and we accept no liability for errors, omissions, or consequences resulting from its use without professional review.

This sample Family Loan Agreement is for illustrative purposes only. Specific terms and conditions may vary depending on individual circumstances. Adjust details accordingly.

Family Loan Agreement Sample

Parties Involved:

Lender: Michael Johnson
Address: 789 Maple Street, Springfield, IL 62704

Borrower: Sarah Johnson
Address: 789 Maple Street, Springfield, IL 62704

Loan Amount and Terms:

The lender agrees to loan the borrower the amount of $5,000, which shall be disbursed on __________________. The borrower agrees to repay the loan in full by __________________, in installments or as a lump sum, as mutually agreed upon.

Interest:

The loan shall bear interest at a rate of ____% per annum, calculated on the outstanding balance and payable __________________.

Repayment Terms:

The borrower shall make payments of $____ on the ____ day of each month, until the full amount, including interest, is repaid. Early repayment is permitted without penalty.

Security:

This loan is unsecured / secured by ________________________________ (describe collateral if applicable).

Parties’ Obligations:

The lender agrees to disburse the funds as specified and to provide receipts and documentation as needed. The borrower agrees to repay the loan as agreed and to notify the lender of any changes affecting repayment.

Governing Law:

This agreement shall be governed by the laws of the State of Illinois. Any disputes shall be resolved in the courts of Sangamon County.

Additional Provisions:

• Any modifications to this agreement must be made in writing and signed by both parties.
• The borrower agrees to provide any necessary documentation or security if required in future.
• Failure to repay as agreed may result in legal action or collection efforts.

Springfield, ______________________