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Family Loan Agreement Template


This template is an alternative to our personal loan agreement and has been specifically designed for the scenario of lending to family or friends. It allows a loan to be made for a financial expense with clear boundaries and clarity to avoid family conflict and confusion in the future by providing a written record of what has been agreed. 

The template includes various repayment options which can be adjusted if the payments schedule needs to be extended with the inclusion of an amendments clause also in the template.

The template has also been drafted to be with or without interest payable. It may be a good idea to charge at least as much interest as the money would earn in savings as well as to ensure that the loan is seen as a loan and not a gift. However, note that that whether interest is charged, there are likely to be tax implications both as to income earned (interest charged) and inheritance tax gifting (no interest charged). It is important to seek independent advice before making any decision on charging interest.

A prepayments clause as well as an electronic signatures clause are also included.

If you require an agreement with more protection for the lender, please refer to other documents in this folder.

NOTE: This agreement is not intended to be regulated by the Consumer Credit Act 1974 which requires that businesses that lend money to consumers must be licensed to do so or those that engage in regulated activity must be regulated by the Financial Conduct Authority (FCA). This agreement is not intended for consumer purposes. You can be imprisoned and fined if you carry out regulated activities without being authorised. 

Optional phrases/clauses are enclosed in square brackets. These should be read carefully and selected so that they are compatible with one another. Unused options should be removed from the document.

This document is in open format. Either enter the requisite details in the highlighted fields or adjust the wording to suit your purposes.

Family Loan Agreement Template is part of Corporate Documents. Just £35.00 + VAT provides unlimited downloads from Corporate Documents for 1 year.

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