What if someone borrows money from you and never pays back? Or what if you borrow some money and the lender increases the amount later? It gets problematic. Doesn’t it? This is why it is suggested to never lend or borrow money without written agreements.
Loan agreement letter is a legal document that helps you record the loan agreements and its details in order to save you from possible headaches if your borrower or lender is a dishonest or otherwise forgetful person.
These headaches can follow you even if you write a letter but write it inappropriately. To save your Disprin tablets, we have some tips for you;
- Before writing a loan agreement letter, make sure what are the terms and conditions on which the agreement is being made.
- Write the details of lender and borrower with utmost care as this can otherwise cause problems.
- Don’t make even a minute mistake while writing about the amount of loan.
- Mention the repayment schedule.
- Add in the agreement letter, the consequences borrower will have to face if he doesn’t pay the money back by the due date.
- Signature proof of both the lender and borrower has to be there on a loan agreement letter.
- It is always recommended to attest your letter from an attorney or notary public especially if you’re dealing with a huge amount.
Since we know that writing a loan agreement letter is a tricky job, we’ve tried to make it easy for you with our loan agreement sample letter because we desperately want to save you from headaches and Disprin.
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Loan agreement letter between two parties
Dear [Name of 2nd Party],
Please address this letter as a confirmation for the agreements discussed in our last meeting on [Date], regarding the loan. We have read through the contract and are pleased with the details mentioned on behalf of both parties.
Please contact us on our provided contact details to confirm our next meeting appointment. We would like to move forward with the contract signing to verify the deal. Awaiting your reply.
Loan agreement letter between two individuals
Dear [Name of Individual],
I am sending this letter to you as a confirmation of our loan agreement. I have thought long and hand over the loan agreement and have come to the decision of confirming the agreement.
However, I would like to discuss the details of the loan with you in person, before we proceed with the lending. Please reply with a date and time, when you will be available to meet up. Looking forward to your reply.
Money lending agreement document between two people
Dear [Name of Receiver],
I am sending this letter to you so I can confirm the contract details. I have created a legal document in which the details regarding our discussed agreement have been listed. You will find the rough draft of the document attached to this letter.
If you have any queries regarding the document, please let me know so I can make any required changes to the document. Looking forward to your reply.