New Personal Loan Agreements
These very short agreements are intended for use in the most straightforward situations, for example, where one family member loans money to another, or where money is loaned between colleagues or friends. The loan will be provided in one lump sum, and paid back on a fixed date. However, the lender can demand repayment of the loan at any time (subject to a notice period to allow the borrower to find the funds to repay).
The Personal Loan Agreement (With Interest) provides for interest to be paid on the loan. Under the Personal Loan Agreement no interest is payable. These are not intended to be sophisticated agreements, and the main purpose is to formally record the debt to avoid any misunderstanding between the lender and borrower.
The contents of this Newsletter are for reference purposes only and do not constitute legal advice. Independent legal advice should be sought in relation to any specific legal matter.