Sample Loan Agreement Letter

Date: [Insert Date]

Parties Involved:

Lender: [Lender's Full Name] Address: [Lender's Address] Contact Number: [Lender's Phone Number] Email: [Lender's Email Address]

Borrower: [Borrower's Full Name] Address: [Borrower's Address] Contact Number: [Borrower's Phone Number] Email: [Borrower's Email Address]

Loan Details:

1. Loan Amount: The Lender agrees to loan the Borrower the principal sum of [Insert Amount] dollars ($[Insert Amount]).

2. Interest Rate: The loan will accrue interest at a rate of [Insert Interest Rate]% per annum. Interest will be calculated on a [Insert Basis: daily, monthly, yearly] basis.

3. Term of the Loan: The loan term will be [Insert Number] months/years, starting from the date of this agreement. The final repayment date will be [Insert Final Repayment Date].

4. Repayment Schedule: The Borrower agrees to repay the loan in [Insert Number] equal monthly/quarterly payments of $[Insert Amount] each, beginning on [Insert Start Date]. Payments will be due on the [Insert Day] of each month/quarter.

5. Prepayment: The Borrower may prepay the loan, in whole or in part, at any time without penalty. Any prepayment will be applied to the outstanding principal balance.

6. Late Fees: If the Borrower fails to make a payment by the due date, a late fee of $[Insert Amount] will be assessed. This fee will be added to the total amount due.

7. Default: In the event of default, where the Borrower fails to make a payment within [Insert Number] days after the due date, the Lender has the right to demand immediate repayment of the entire outstanding balance, including any accrued interest and fees.

8. Use of Loan Funds: The Borrower agrees to use the loan funds for [Insert Purpose of Loan]. The Borrower will not use the funds for any unlawful purposes.

9. Governing Law: This Agreement shall be governed by and construed in accordance with the laws of the State of [Insert State/Country].

10. Amendments: Any amendments or modifications to this Agreement must be made in writing and signed by both parties.

11. Signatures:

Lender: Signature: _________________________ Name: [Lender's Full Name] Date: ____________________________

Borrower: Signature: _________________________ Name: [Borrower's Full Name] Date: ____________________________

Witness (if applicable): Signature: _________________________ Name: [Witness's Full Name] Date: ____________________________

End of Agreement