I Payee Name Payee borrowed 1000 from Promisor Name Promisor on Loan Date.

Sample letter of a loan agreement. This Agreement shall be binding upon and inure to the benefit of. State your intent to borrow a specific amount of money. In order to make sure that both the borrower and lender understand each others rights and obligations they sign a contract.

When it comes to a personal loan. This letter is basically a contract created by two parties the borrower and the lender wherein they list down mutual promises. You can only then make it permanent when you and your borrower have agreed on the terms written in the contract.

Payments must be paid on-time and per the instructions of the agreement. The borrower should send two copies of the letter by certified mail with a return requested and keep a copy for his or her records. The repayment period for the loan is _____ mention the no.

This contract is known as the Loan Agreement. While drafting the loan agreement you have to decide on how you want the loan to be repaid. Explain in detail the reason for borrowing money.

How to Write a Loan Agreement. Try It For Free. The exact day you signed the contract is the date of the contracts effectivity.

Full legal name of Payee Full legal name of Promisor. A loan agreement has the name and contact information of the borrower and lender. In this request letter you should give a detailed explanation of what you intend to do with the money and a clear outline of how the loan will be used.