Friends and family loan agreement
This is a simple loan agreement suitable for lending to friends or family. It is intended to make clear to the borrower that the arrangement is "for real" and that the lender intends that the money should be repaid on time as agreed. It is ideal for lending in situations such as large one-off purchases, funding of events, and consolidation of other debts.
- Solicitor approved
- Plain English makes editing easy
- Guidance notes included
- Money back guarantee
About this loan agreement
Lending to friends and family can be difficult.
Not using a written agreement can result in confusion about when the money should be repaid and with how much interest, or a loan could be mistaken as a gift, either by the borrower or other family members or friends.
A written agreement may seem too formal - especially if it is written in a legalistic style. It may prompt the borrower to question your relationship and whether you trust him or her.
This loan agreement is a simple agreement that aims to bridge the gap between not using an agreement at all, and using a longer, more comprehensive one.
When to use this agreement
This is a simple agreement. It contains no provisions for security or for a guarantor. If you need these, look at our other Loan agreement templates or see the most likely alternatives below.
However, it is a legally binding document and you can take action against the borrower if he or she doesn't pay you on time, or uses the loan for a reason not agreed.
Use this agreement when you need to record the loan, but where you have a high level of trust with the borrower.
It is suitable for situations such as:
- lending to a friend to buy a car or other high priced item
- lending to a child for a house deposit
- lending to a child to fund a wedding
Either party may be abroad or in the Commonwealth of Australia, and the loan can be of any size.
Alternatives to this document
If you need a more comprehensive agreement, but are happy for the loan to be unsecured, see our standard Unsecured loan agreement: person to person; private or business.
If you need a guarantor, then see Loan agreement: person to person; secured by guarantee.
The law in this document
There is little specific statutory law relating to personal lending, so you are free to agree the terms you want with the borrower. We give you options for different situations.
Drawn outside the National Consumer Credit Protection Act 2009, this agreement is not suitable for companies in the business of lending or providing credit to consumers.
The contents of the agreement
- Definition and purpose of the loan
- Sum of the loan and advances
- Repayment conditions
- Interest payable
- Miscellaneous legal matters
This template is supported by drafting notes so that you will know whether you can safely delete some provision. It is most unlikely that you will want to add new provisions, but if you do, it is easy. Our layout and use of plain English also make it very easy to edit by deletion.
This document was written by a solicitor for Net Lawman. It complies with current Australian law.
How other customers rated this document
Average customer rating
By Robert Kent 11 December 2016
Hi Andrew. I found the document very useful for my requirements. The document was easy to use and I deleted or added anything that I needed to. Whilst I could have done the transaction via "goodwill", using the document gives both parties something to refer to and takes out any future confusion.
By Don Winterford 25 November 2016
Clear concise document, well laid out and therefore easy to use. Our business has benefited from using the document as it is fit for purpose and we saved time and money. We recommend Net Lawman online service to others.
By Daniel Wilkie 01 November 2016
The loan document is was very helpful and just what I needed. Thanks
By DEnnis Macnamara 24 June 2016
It was simple and quick to use and a reasonable price. The template was easy to adapt.
By Debbie Martin 20 May 2016
Was just what I needed.
By Deborah Walter 03 April 2016
Receipt of document was very prompt and the form was ideal for my circumstances. I highly recommend Net Lawman to others requiring similar advice and assistance.
By Eric Saxon 01 January 2016
I had no concerns using Net Lawman.
I was seeking a simple document,that was simply set out ,your document met these requirements and the explanations were clear and concise. It was perfect for my requirements. I would recomment Net Lawman to others seeking an uncomplicated process.
By Deborah Ashby 24 November 2015
Being an "un-Lawful" person with just a bit of nous, I found the document (and guidelines) provided the necessary information for a "reasonable person" to configure it to suit and execute.
By Barry Dean 05 July 2015
The document covers everything I needed and would recommend Net Lawman to others.
By Merrilyn Williams 12 May 2015
We knew what we wanted. The document facilitated the capacity to word the loan contract in legal language. We took the document to a solicitor who ratified it along with changes pertinent to our situation.
By Dona Graham 25 July 2014
Clarity, Phrasing, Suitability.
By Michael Smith 12 April 2014
I found Net Lawman's document to be excellent, the service offered very easy to follow and well priced. I would rate both as 5 out of 5, I would not hesitate to recommend the site to others, and will certainly revisit it if I have further requirements.
By Steve Hambrecht 08 December 2016
Simple and easy to follow.
By Mary Roberts 31 October 2016
Excellent service, but didn't use the document in its current format. I used another one from a different website and this one together to fit my needs better.
By Genevieve Rechner 07 March 2016
It was fast and easy. I am happy with the content.
By Barbara Lees 08 November 2015
It looked like it coveret everything
By DENNIS O'MEARA 02 September 2014
The document was easy to use.The ability to add text without greatly altering the layout would be an improvement.
By Lesley Skinner 26 January 2017
I had to edit heavily but was OK when i finished. Not much available, so as glad to find yours
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