A simple loan agreement is prepared when an individual takes loan from another individual rather than taking loan from a financial organization. The loan can also be granted by a business for another business. A simple loan agreement is also known as personal loan agreement.
Sample Simple Loan agreement:
The Simple Loan Agreement has been drafted on the 21st of November, 2010 by and between Jack Woo and Robert Brando in accordance to the laws of the state of Los Angeles. Jack Woo, the lender will grant Robert Brando, the borrower a sum of $50,000.
Additional terms and conditions:
The Borrower has to pay the lender a monthly installment of $1000 till the time period of the loan is over.
The time period of the loan is five years.
The Borrower will have to pay the total outstanding amount within thirty days if there is any written demand by the Lender.
The Borrower needs to make the payment through checks at the residential address of the Lender which is: 234 Hut road, Nevada, Los Angeles 1256.
The Borrower will be considered as defaulter if he misses payment for three consecutive months or he becomes insolvent.
As a sign of acceptance of the terms and conditions, both the parties affix their signature below: