Simple and Friendly Loan Agreement Format

Parties Involved:

This Loan Agreement ("Agreement") is made and entered into on [Date] by and between:

1. Lender: [Lender's Full Name], residing at [Lender's Address].
2. Borrower: [Borrower's Full Name], residing at [Borrower's Address].

Loan Details:

1. Loan Amount: The Lender agrees to loan the Borrower the sum of [Loan Amount] (the "Loan").
2. Purpose of Loan: The Loan is provided for [Specify Purpose of Loan].

Repayment Terms:

1. Repayment Schedule: The Borrower agrees to repay the Loan in [Number] installments of [Installment Amount] each, starting on [Start Date] and ending on [End Date].
2. Interest Rate: The Loan will accrue interest at an annual rate of [Interest Rate]%.

Late Payments:

1. Late Fee: If the Borrower fails to make a payment within [Number] days of the due date, a late fee of [Late Fee Amount] will be applied.

Prepayment:

1. Prepayment Option: The Borrower may prepay the Loan in full or in part at any time without penalty.

Default:

1. Definition of Default: Default occurs if the Borrower fails to make any payment within [Number] days of the due date or breaches any other term of this Agreement.
2. Remedies for Default: Upon default, the Lender may declare the entire remaining balance of the Loan due and payable immediately.

Governing Law:

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

Signatures:

Lender: Signature: _______________________________ Printed Name: [Lender's Full Name]

Borrower: Signature: _______________________________ Printed Name: [Borrower's Full Name]

Witness (Optional): Signature: _______________________________ Printed Name: [Witness's Full Name]