3 Lend Money To Friends Templates That Preserve Friendships

Lending money to friends can be a sensitive and complex issue, necessitating a careful approach to ensure clarity, mutual understanding, and to preserve the relationship.



Below are three detailed templates that cater to different scenarios: a formal agreement, a casual but clear arrangement, and a gentle reminder for repayment.

Template 1: Formal Loan Agreement

Subject: Formal Loan Agreement Between [Your Name] and [Friend’s Name]

Dear [Friend’s Name],

I hope this message finds you well. As discussed, I am willing to lend you the sum of [Loan Amount] to assist with [Reason for Loan, e.g., home repairs, medical expenses]. This formal agreement outlines the terms of the loan to ensure both parties are clear on the expectations and commitments.


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Loan Details:

  • Amount: [Loan Amount] to be paid to [Friend’s Name] by [Your Name].
  • Purpose: The loan is intended for [Brief Description of Loan Purpose].
  • Repayment Terms: [Friend’s Name] agrees to repay the total amount in [Number of Installments] monthly installments of [Amount per Installment], starting from [Start Date] and ending on [End Date], or a lump sum by [Lump Sum Payment Date].
  • Interest: [Specify if there is interest. If yes, include the rate and how it will be applied].
  • Late Payment: In the event of a late payment, [specify any late payment fees or conditions].

Agreement: Both parties agree to the terms outlined above. This agreement serves as a commitment to repay the loan under the specified conditions and timeframe.

Signatures: 

[Your Name] [Date]

[Friend’s Name] [Date]

Please review the terms and sign below to acknowledge your agreement. Feel free to discuss any questions or concerns you might have before signing.

Best regards, 

[Your Name]

Template 2: Casual Loan Arrangement Email

Subject: Loan Arrangement

Hey [Friend’s Name],

I’m glad I can help out with the [Loan Reason]. Just to make sure we’re both on the same page, here’s a quick summary of what we talked about:

  • Amount: I’ll lend you [Loan Amount].
  • Payback Plan: You mentioned paying it back by [Repayment Date or Schedule]. That works for me.
  • Use of Funds: The money’s for [Brief Description of Purpose].

No formalities are needed, but I thought it’d be good to have this in writing so we both remember what we agreed on. Let me know if you see things differently or if your situation changes.

Catch up soon, 

[Your Name]

Template 3: Gentle Reminder for Repayment

Subject: Friendly Reminder on Loan Repayment

Hi [Friend’s Name],

I hope you’re doing well. I just wanted to drop a quick note regarding the [Loan Amount] loan from [Date of Loan]. As per our agreement, the repayment was due [Repayment Due Date]. I understand life gets busy, and things can slip our minds.

If you’re in a position to start the repayment, could we discuss a plan that works for you? If things are tight right now, I’m open to hearing about it, and we can figure out a way forward together.

Appreciate your understanding and looking forward to resolving this in a way that works for both of us.

Best, 

[Your Name]


These templates are designed to address the nuances of lending money to friends, ranging from formal agreements to friendly reminders, ensuring clarity and preserving the relationship.

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