When it comes to personal finances, sometimes we find ourselves in situations where we need to borrow money from family or friends. In such cases, it is essential to have a hand loan agreement in place to avoid any misunderstandings or conflicts in the future.
A hand loan agreement is a legal document that outlines the terms and conditions of the loan agreement between the lender and the borrower. It establishes the amount borrowed, the interest rate, repayment terms, and any other relevant information.
Here is a format for a hand loan agreement in English:
Hand Loan Agreement
This agreement is made on [insert date] between [insert lender name] (hereafter referred to as “Lender”) and [insert borrower name] (hereafter referred to as “Borrower”).
Loan Amount: The Lender agrees to loan the Borrower [insert loan amount] (hereafter referred to as “Loan Amount”).
Interest Rate: The Loan Amount will be subject to an interest rate of [insert interest rate] per annum (hereafter referred to as “Interest Rate”). The Interest Rate will be calculated based on the Loan Amount outstanding at the end of each month.
Repayment Terms: The Borrower agrees to repay the Loan Amount to the Lender in [insert repayment terms] (hereafter referred to as “Repayment Terms”). The Borrower agrees to make the repayments on or before the agreed due dates.
Default: In the event of default by the Borrower, the Lender shall have the right to demand the immediate repayment of the outstanding Loan Amount.
Governing Law: This agreement shall be governed by the laws of [insert governing law].
Amendment: This agreement may be amended or modified only by a written instrument executed by both parties.
Entire Agreement: This agreement contains the entire understanding between the parties and supersedes all prior agreements and understandings, whether written or oral.
In Witness Whereof, the parties have executed this agreement as of the date and year first above written.
Lender: [insert lender name]
Borrower: [insert borrower name]
Overall, a hand loan agreement is a crucial document that protects both the lender and the borrower from any potential issues that may arise in the future. By using the format provided above, you can ensure that your hand loan agreement is clear, concise, and legally binding.