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Borrowing Money Agreement Letter Template

Put a simple loan agreement in writing with clear repayment terms using this Borrowing Money Agreement Letter Template.

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Borrowing Money Agreement Letter Template

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Borrowing Money Agreement Letter Template


Date: [Date]

From (Borrower): [Borrower Full Name]
[Borrower Address]
[City, State, ZIP]
[Phone] | [Email]

To (Lender): [Lender Full Name]
[Lender Address]
[City, State, ZIP]


1. Loan Confirmation

I, [Borrower Full Name], confirm that I have received $[Amount] from [Lender Full Name] on [Funding Date] as a loan.


2. Repayment Terms

2.1 Repayment Schedule (Select One):
☐ One-time payment of $[Amount] due on [Due Date]
☐ Installments of $[Amount] due on: [Dates]
☐ Other schedule: [Describe]

2.2 Interest: ☐ No interest ☐ Interest at [__]% per year (if permitted).
2.3 Payment Method: ☐ Bank transfer ☐ Check ☐ Cash ☐ Other: [Method].
2.4 Payment Destination: [Account details or address].


3. Late Payment (Optional)

3.1 Payment is late after [] days.
3.2 Late fee: $[
] or [__]% (if permitted).


4. Default

4.1 If I fail to make payments as agreed, the remaining balance may become immediately due, and the Lender may pursue lawful collection options, subject to applicable law.


5. Additional Terms (Optional)

5.1 [Any additional terms, e.g., partial payments allowed, communication method, payment holidays.]

Sincerely,
[Borrower Full Name]


Signatures

Borrower: [Full Name]
Date: [Date]
Signature: ___________________________

Lender (Optional Acknowledgment): [Full Name]
Date: [Date]
Signature: ___________________________


Witnesses (If Required)

Witness Name: [Name]
Date: [Date]
Signature: ___________________________


Notary / Notarization (Optional)

State of [State]
County of [County]

On [Date], before me, [Notary Name], personally appeared [Borrower Name] and [Lender Name], known to me (or satisfactorily proven) to be the person(s) whose name(s) are subscribed to this letter, and acknowledged that they executed it for the purposes stated.

Notary Public Signature: _______________________
My Commission Expires: _______________________
Notary Seal (if applicable): ___________________

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Easy-to-understand jargon

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Borrowing Money Agreement Letter Template

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For quick answers, scroll below to see the FAQ.

Click below for detailed info on the template.
For quick answers, scroll below to see the FAQ.

BORROWING MONEY AGREEMENT LETTER TEMPLATE FAQ


What is a borrowing money agreement letter?

A Borrowing Money Agreement Letter is a simple written document where a borrower confirms they received money from a lender and agrees to repay it under specific terms. It’s often used for informal personal loans between friends or family, or small business loans where parties want a clear record.


What should be included in the letter?

Include: lender and borrower names, amount borrowed, date the money was given, repayment schedule, interest (if any), late fees (optional), payment method, and signatures. This template keeps it readable while still covering key terms.


Should you charge interest?

It depends on the relationship and local laws. If you include interest, keep it clearly stated and ensure it complies with any interest rate limits. If you don’t charge interest, state “no interest” to avoid confusion.


Is this the same as a promissory note?

It’s similar, but a promissory note is typically more formal and structured as a legal instrument. This letter format is intended to be easier for everyday use while still creating a written commitment.


Do you need witnesses or notarization?

Not usually required, but it can help for larger amounts. This template includes optional witness and notary sections, but you can omit them if not needed.


What is AI Lawyer?

AI Lawyer is an AI-powered assistant that helps you create and customize legal and business document templates online. It guides you through key sections, suggests wording, and explains complex concepts in simple language. AI Lawyer does not replace a licensed attorney or provide legal advice, but helps you prepare better documents faster and more confidently.

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