Money contract?

Question

How do you create a loan contract for a friend?

I known this man for 10 years and he really need my help with paying a attorney. It's not much, but he needs it by Thursday. I know if I was in the same situation, he would help me.

I need a website that create a loan contract or give me some examples. Thanks

Answer 1

There's a website www.circlelending.com that helps formalize and administer private loans between friends and family. I'd check it out.

I hope that helps.

Answer 2

well since it's a written document it is practically legal, all you have to do is pay a lawyer to notarize it. It could say:

I (Your name), am loaning the amount of (amount) to (person's name) to be paid in monthly installments of (amount) by the (day number you want the money -example: 30th). Failure to do so by this time will incur in a (small amount-example: $10) penalty fee per every (day,week).
Failure to make a payment towards the pending balance by the time indicated, will result in legal action. By signing this contract you agree to all of the above terms an will comply with the payments stipulated.

(Your signature)
Finacial Lender

(His signature)
Payee

Answer 3

It doesn't need to be too complicated or fancy.

I, (insert name) agree to loan (insert name) $(insert amount). The loan to be repaid (specify date/terms)

Spell out details on the repayment terms. If it's $x per month for y months to be paid in full not later than a specific date.

Both of you sign it -- get it notorized or at least get a witness to sign as witness.

Make a copy for each of you. Keep track of loan payments, date and amounts.

Answer 4

One thing to consider is depending on how much money we are talking about, you might consider just giving him the money. Trust me when I say that when you loan money to friends/family, your relationship with that person is very likely to deteriorate. So if it is an amount you can give him, just do it with the expectation that he help someone else out later when he can.

Also, if it is a larger amount that you expect to be repaid, do you think he will be able to repay it? If he was good with money, he wouldn't be in the situation he is in now.

Answer 5

At the site below you'll find a form you can use. You may not need the entire form, but use what portion you feel is necessary. Smart of you to put it in writing. Not just to protect yourself, but to keep things clean and without the possibility of misunderstanding. Some might think that requiring a written contract would threaten a friendship; I think it protects one.

Answer 6

in most states you only have to write up a document that states the terms of the loan and have it notarized. in my state anything under 3k can be handled in small claims court.

I name here agree to a loan of x dollars. the loan shall be paid back on so and so terms

signed

joe the loaner