The Zebra Legal Loan Agreement is simple, fast and easy to conclude. I legally recommend Zebra and all their great legal documents. Save time and money, use Legal Zebra! Great Barry, I`m glad Legal Zebra was able to help you with a template for your loan contract. (There is no security, as it is a family loan.) You can check a box in the loan agreement to say whether the borrower can prepay the loan (and can avoid new interest payments) or not. A friend asked to borrow money. I want to make a basic loan deal. A great model at an incredible price. Thank you! I just needed a simple document for a family credit contract, and it got the job done quickly. You should establish a great payment plan and a credit plan that works for you. If your family or friend doesn`t agree with the schedule, don`t lend them the money. This agreement was signed and dated to the date - to indicate the basic interest rate of the loan and the frequency of payments (e.g. B quarter).

They can also set a higher late interest rate if the borrower does not pay on time. One of the most neglected areas of family credit contracts is tax implementation. This is because most people neglect the fact or do not know that family credits are also taxed on the basis of interest. It is therefore of absolute importance for individuals to lend amounts that do not exceed the IRS tax threshold. While interest rates may conflict with the original intention of offering the loan to a family member, they are a necessary evil to maintain professionalism. First of all, like all other institutions, you will be doing your money a favour by calculating an interest rate, because it would have earned a decent interest if it could have been used in a different way. In this way, you can compensate for any losses that may occur during the term of the loan. However, it is important not to set credit limits beyond the IRS thresholds. This is because you have to pay a tax as soon as that threshold is reached.

To avoid this, use the current federal tariff, which is offered directly by the government. This will not only ensure that you get a decent interest rate, but also, you will not be subject to any form of taxation. Provision for loan repayment guarantee in the event of the borrower`s default. Credit contracts usually contain information about: I lend money to a company, but I`m afraid they will go bankrupt.