Free Loan Agreement between Friends [Sample]

A friend-to-friend loan agreement is made between a borrower and a lender who are both friends. It’s designed to be a straightforward agreement between the parties that spells out the amount borrowed and the terms of repayment. 

Learn how to draft a friendship loan arrangement. For your agreement letter, use our sample loan agreement between friends as a template.

Sample 1 - Loan Agreement Between friends

The undersigned agrees to pay to [Robert and Janet Calhoun] the principal sum of Five thousand, six hundred and seventy five dollars and no cents. [$ 5,675.00] This note also includes interest of six percent [6%].

The principal amount, including interest, is payable in payments as follows: [two hundred and seventy five dollars and no cents ($275.00)] on the 1st day of [MONTH] and one hundred and seventy five dollars and no cents ($175.00) due the 15th of [MONTH] and every month thereafter until this loan is paid in full. All installments are due on the 1st and 15th day of each and every month thereafter until this Note is fully paid.

The only exception is the final payment, if not paid at an earlier date, which will be due on 21st day of [MONTH] in the amount of [thirty nine dollars $39.00]. All payments made will be first applied to interest and then principal balance.

Payments are to be by mailing to [ADDRESS]. The lenders reserve the right to change the address in writing if necessary. It may become necessary for the lenders to secure the amount of said note. 

The undersigned agrees that this note may be revocable due to non-payment of any collection costs, such as court, and other collection activities will be added to the balance. 

Should the lender exercise this option, the entire unpaid balance of the loan and interest becomes due and payable immediately. Reasonable collection activities may include attorney fees and obtaining a judgment.

By signing this document, both parties agree to the terms and guidelines laid forth.

___________________________
Borrower

___________________________
Borrower

____________________________
Lender

____________________________
Lender

Sample 2 - Loan Agreement Between friends

Full, legal name of Payee
Full, legal name of Promisor

Loan Date

Total Amount of Loan
Final Due Date for Repayment

Agreement Terms:

On Loan Date, I, Payee Name (“Payee”), borrowed $1,000 from Promisor Name (“Promisor”). By signing this agreement, Payee and Promisor agree that Payee will repay Promisor according to the payment schedule below.

Beginning January 1, 20__, Payee undertakes to return Promisor with a personal check for $100 on the first of each month for a period of ten months. The final payment will be made on October 1, 20__, and the debt will be entirely returned at that time.

The payee also agrees to pay a $35 late fee for each week that payment is late after the first of the month. For periods of less than seven days, the $35 late fee may be prorated as a $5 per day charge for each day the payment is late.

Both Payee and Promisor agree to the payment agreement defined above.

Signed:
Signature of Payee with Date
Signature of Promisor with Date
Signature of Witness or Notary with Date

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