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This agreement is used if you are assigning a loan to or taking from someone and want to avoid any misunderstanding by laying down the terms and conditions beforehand.
Borrowing and lending money involves various rights and liabilities.
For the lender, it involves risk. Therefore, it is necessary to enter into this agreement to avoid any future troubles.
For borrower, the agreement lays down the details of the sum, the interest and other provisions so the lender cannot change the repayment scheme at his/her will.
To make it legally binding, the agreement should be printed on a non-judicial stamp paper, sealed (if any) and signed by the borrower, the lender and the concerned witnesses.
Use this agreement if
You wish to take a loan and want to lay down the terms in writing.
You wish to lend money to someone and want to let the borrower know the terms in writing.
Users who create Loan Agreement often require the following list of additional agreements.