Sample Agreement between Lender and Borrower

Sample Agreement between Lender and Borrower

When it comes to borrowing money, having a clear and concise agreement between the lender and borrower is essential to ensure both parties are on the same page and understand their obligations. A sample agreement can be a useful tool for both lenders and borrowers to reference during the borrowing process.

Here is a sample agreement between a lender and borrower:

Agreement between Lender and Borrower

This agreement (“Agreement”) is made on [date] between [Lender’s Name], (“Lender”), located at [Lender’s Address], and [Borrower’s Name], (“Borrower”), located at [Borrower’s Address].

1. Loan Amount: Lender agrees to loan Borrower the sum of [Loan Amount] (“Loan”) on [Loan Date].

2. Interest Rate: The interest rate on the Loan will be [Interest Rate] percent per annum.

3. Term: The term of the Loan will be [Loan Term] months.

4. Payment: Borrower will make payments on the Loan on the [Payment Date] of each month in the amount of [Payment Amount] until the Loan is paid in full.

5. Prepayment: Borrower may prepay the Loan without penalty.

6. Default: If Borrower fails to make a payment on the Loan when due, or if Borrower breaches any other term of this Agreement, Lender may declare the entire unpaid amount of the Loan immediately due and payable.

7. Governing Law: This Agreement will be governed by and construed in accordance with the laws of the State of [Governing Law].

8. Entire Agreement: This Agreement constitutes the entire agreement between the parties and supersedes all prior negotiations, representations, and agreements between them.

9. Amendment: This Agreement may not be amended, except in writing signed by both parties.

10. Binding Effect: This Agreement will be binding on and enforceable against the parties and their respective heirs, executors, administrators, successors, and assigns.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.

[Lender’s Name]

[Lender’s Signature]

[Borrower’s Name]

[Borrower’s Signature]

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