This template is a Personal Loan Agreement for use by individuals and is especially suitable for family members and friends.
Commonly, private loans between family members and friends are not documented at all or are poorly documented. This can create misunderstandings and problems if things should go wrong.
This template sets out the obligations of the Lender and the Borrower and regulates how the loan and repayment of the loan are to work.
It is suitable for an interest only loan but not for a principal and interest loan.
It provides for simple interest and not for compound interest, payable monthly in arrears for a fixed period of time.
It makes no provision for security for the borrowing or for any guarantee by a third person.
This template is provided by LegalRocket to the Lender and for the Lender’s benefit. It is provided free of charge and on the terms and conditions set out on the LegalRocket website.
It has been drafted by an incorporated legal practice registered under the Legal Profession Uniform Law in Australia.