personal loan letter between friends notarized

The Borrower agrees to secure this Agreement by pledging the following collateral: (“Security”). As part of this Agreement, the Borrower agrees to: (check one) The Borrower shall not be charged a late fee.ħ. The Borrower shall be charged a late fee equal to: If a payment is late, the Borrower shall be: (check one) If the Borrower is late by more than days for any payment due, it shall be considered late. Hereinafter known as the “Payment Schedule.” All payments made by the Borrower shall be first applied to any accrued interest and second to the principal balance.Ħ.

The Borrower agrees to repay the Lender, in full, on the Due Date. The Borrower agrees to repay the Lender on the of each month until the Due Date. The Borrower agrees to repay the Lender on the of each week until the Due Date. The Borrower agrees to repay the Borrowed Money to the Lender under the following payment schedule: (check one) The total amount of the Borrowed Money, including principal and interest, shall be due and payable on (“Due Date”).ĥ. The Borrower’s only obligation to the Lender is to repay the principal balance.Ĥ. There shall be no interest associated with the Borrowed Money. The Borrowed Money shall bear interest at a rate of % compounded: (check one) The total amount of money being borrowed from the Lender to the Borrower is $ (“Borrowed Money”).ģ. Lender: with a mailing address of and agrees to lend money to the Borrower under the following terms:Ģ. This Personal Loan Agreement (“Agreement”) made this is between:īorrower: with a mailing address of (“Borrower”) and agrees to borrow money from: The main difference is the personal loan must be paid back on a certain date and a line of credit offers revolving access to money with no end date.ġ. Default Terms (if the borrower doesn’t pay).This lending contract must include several key provisions: Variable Rate – When the interest rate is tied to a third-party such as the current Fed Funds Rate.Although, if the borrower does not pay their personal assets may still be confiscated legally. Unsecured– The borrower is not required to place collateral as part of the loan agreement.Often the collateral is a vehicle or a 2nd mortgage put on a home. Secured– The borrower is required to put collateral down in case of default.Fixed-Rate – The interest rate remains the same during the course of the repayment period.Co-Sign – When the borrower has bad or no credit and needs someone else to be liable in case they do not pay.

The lender may be a bank, financial institution, or an individual – the loan agreement will be legally binding in either case. Interest is the cost of a loan and is calculated annually. The borrower will be responsible for paying the lender back plus interest. Table of ContentsĪ personal loan is a sum of money borrowed by an individual that may be used for any purpose. State Usury Rates – The maximum interest rate allowed in a state.

Personal loan letter between friends notarized