Dear…
RE: Terms of Loan to__(Full Name)__
With reference to our discussions regarding a personal loan from myself to you, please find outlined below the Terms of Agreement for this loan.
- Lender - Loan Agreement: I, __(Full Name)__, do hereby offer a loan in the amount of __($amount)__ to __(Full Name)__, for a period of __(length of time)__. This __(number)__-month loan is based on the principle amount of __($amount)__, plus (an annual/a monthly)__ rate of interest of __(__%)__, which brings the total of the loan repayment amount to __($amount)__.. Date of loan to be effective __(date)__.
- Borrower -Terms of Repayment: __(Full Name)__ agrees to make __(number)__ consecutive monthly payments in the amount of __($amount)__ in repayment of this loan. The first loan payment is due on __(date)__, and thereafter on the __(date i.e. 24th )__ day of each month until the amount of __($amount)__ is paid in full. Upon execution of this loan, __(Name)__ agrees to provide a series of post-dated checks to cover each of the payments due as listed herein. Note: Early repayment of this loan is acceptable and, in such case, any applicable interest adjustments will be made.
Your signature at the bottom of this letter signifies your agreement to the terms of this loan.
Yours truly,
X________________________
(type Name of Lender here)
SIGNED in the presence of
X_________________________ X__________________________
(type Name of borrower here) (Witness)