Borrowing and lending money is usual in the society. For every transaction it is better to keep a loan agreement signed by lender and borrower and two witnesses to avoid any future dispute and keep a healthy relation. This also gives a feeling of security to both parties.
Sample Format of Loan agreement to give loan to borrower by the Lender is given below.
LOAN AGREEMENT
This Agreement made and entered into at_________ this______ day of_______ 200_
BETWEEN
Mr. __________________S/o ___________ R/o___________ (Hereinafter called the
Lender) of the ONE PART
and
Mr. ________________S/o_______________ R/o________________
(Hereinafter called "the Borrower" and reference to the parties hereto shall
mean and include their respective heirs, executors, administrators and assigns) of the
OTHER PART
WHEREAS the Borrower is in need in need of money for some urgent requirements
and hence has approached the Lender to grant her an interest-free loan of Rs.________/-
(Rupees ____________________ only) for a period of ____ years;
AND WHEREAS the Lender has agreed to grant a loan to the Borrower, free of interest, as the Lender and the Borrower have known each other since several years;
AND WHEREAS the parties hereto are desirous of recording the terms and conditions of this loan in writing;
NOW THIS AGREEMENT WITNESSETH and it is hereby agreed by and between the parties hereto as under:-
1. The Borrower hereto, being in need of money, has requested the Lender to give him an interest-free loan of Rs.___________/- (Rupees _________________________ only) to enable him to purchase a residential flat, to which the Lender has agreed.
2. The said loan is required by the Borrower for a period of ____ years, commencing from __/__/____ and terminating on __/__/_____.
3. The Borrower hereby agrees and undertakes to return the loan of Rs.___________/- (Rupees ______________________ only), in installments, within the aforesaid period of ____ years and gives his personal guarantee for the same.
4. The terms and conditions of this Agreement are arrived at by the mutual consent of the parties hereto.
WITNESS WHEREOF the parties hereto have hereunto set and subscribed their respective hands the day and year first hereinabove written.
LENDER___________________
Witnesses
1.
BORROWER ___________________
2.
Friendly Loan
A A friendly loan usually giving to some persons with good relations to help him. It is lending money to your friends or relatives for a personal reason like to help them in the time of financial difficulties. If the loan goes bad, the relationship also sours. Moreover, such a loan is usually interest-free. This means you lose money.
Precautions while giving and taking loan
1. All loan transaction should be through bank transfer, account payee cheque or Demand Draft.
2. Interest free loan should be given from your savings, not from your borrowed funds on which you are giving interest.
3. Check the credit worthiness of the Lender
Agreement for Lease of commercial property, Rent agreement for office space
Agreement for License for commercial property, Office space
Agreement for Lease of Residential House, Rent agreement Residential Accommodation
Agreement, Collaboration with builder for construction or developer for construction
Agreement, seasonal job contract, temporary employee appointment agreement
Agreement, Family compromise, Property dispute settlement agreement
Agreement, Employee full and final payment and settlement document.
Agreement to Sell format for Sale of Property
Agreement for Retail Business, Sample
Agreement Between Contractor and Principal Employer for Work outsource
Agreement, Husband and Wife for divorce proceedings and settlement of Disputes
Agreement for reference of dispute to Arbitrator by parties on mutual consent
Agreement for Arbitration by members of HUF and to appoint Arbitrator to solve dispute
Agreement for Arbitration and to appoint sole Arbitrator
Hire Purchase Agreement owner, hirer and dealer for Purchase of Vehicle under Hire Purchase Act 1972
Hire Purchase Agreement owner, hirer and dealer for Purchase of Vehicle under Hire Purchase Act 1972
Hypothecation Agreement between Creditor and Borrower under sarfaesi act 2002
Loan Agreement format to lend money to borrower by Lender with or without interest
Loan Agreement format for Loan with Pledge of shares as security and with interest
Loan Agreement format with Surety and without security
Loan Agreement with Surety and Hypothecation of Property
Memorandum of Understanding between Lender and Borrower to give loan
Bond to issue succession certificate under Section 375 of Indian Succession Act 1925
Administration Bond under Section 291 of Indian Succession Act 1925
Bond to pay decreed amount in installments
Bond by Employee to Employer for not engaging himself with Competitor or pay damages
Agreement for design and development of a website by software company for a client
Confidential information and non disclosure agreement format
Contractor and Service Provider agreement format
Agreement to sell a Business including space
Office facility and Services Business Agreement
Loan agreement between Employer and Employee for loan to Staff
Canteen Agreement format between Company and contractor to provide food to staff
Agreement for Hostel Services between College and Hostel Service Provider
Memorandum of Understanding for Collection of Money from Defaulters
Appointment letter to appoint employee with confidentiality agreement
Consultant Appointment letter to appoint Professional Consultant on retainer ship
Agreement to appoint sole selling agent by Manufacturing Company