A family loan contract template is a format which describes completely the terms based on which a family loan contract is signed between two or more than two parties. It gives details about the contact information, payment details and other legalities related to the contract.
Sample Family Loan Contract Template:
This family loan contract is made between:
Name: [name of the obligor]
Address: [address of obligor]
Name: [name of obligee]
Address: [address of obligee]
Date: [day], [month], [year]
Location: [address of signing of contract]
The obligor agrees to loan an amount of $[amount] to the obligee on a condition that the obligee must repay the loan on the basis of equal monthly installments through [cash/credit card/other] mode. The installments shall be bearing a rate of interest of [number] % per annum.
The following are the terms and conditions to be obliged by both the involved parties:
- The installment amount must be received by the obligor within the first [number] days of each month.
- Late fee charges will be $[amount] which will increase by $[amount] with every passing week.
- This is a legal document and the obligor and obligee must follow the terms to avoid any breach which might also result in legal actions taken under the federal laws of the state.
- The obligor and the obligee must retain a copy of this document to avoid disputes from the future reference point.
Both the parties agree with the terms of this contract: