The letter is intended to protect both parties who enter into the agreement. It is best to have legal proof of who borrowed the money, when they borrowed it, and specific terms of repayment. The legal proof of all parties protects the bank accounts of one of the two parties as well as the friendship. You just want to know what you need. Be sure to do it politely. You need to specify a precise amount of what you need and what you need it for. This loan is an unconventional loan, but you still have to explain what it is for. As you would if you were lending loans from a standard lender. If you speak to your family member or friend, you should, if possible, ask for it personally. If you are unable to do so, call them personally to give them a thorough explanation. Tell them what you need and why you need it. I wrote a full blog here on “How to ask friends and family for money.” If you decide that you are asking a family member or friend for money, you should treat this credit with as much professionalism and courtesy as you would with a professional lender.
Be sure to ask for a contract. If you ask for the money and the friend or family member accepts the loan, your interview must cover the following: If you set an interest rate on the money lent to a relative, you may conflict with the values and relationships of the family, because the transaction looks like a business conclusion, just as in the case of a parent-child loan contract. But sometimes there is no choice but to borrow from a family member. Payee and Promisor both agree with the payment agreement defined above. They need to know when they want the money to be refunded. Do you give yourself six months? Eighteen months? Maybe two or three years? Whatever the time frame, you must first find out. If you would know when you want and if it is possible even because of your own financial situation. If you are the lender in the case of a family member or a personal credit friend, you need to consider several scenarios if you are borrowing money in an unconventional way. Describe in detail the terms of repayment of the loan. Often, these types of credits are repaid immediately after the borrower receives a substantial amount of capital as a result of a financial event such as the transaction.
B of a transaction or tax refund. An individual or business may use a loan agreement to set conditions such as an interest rate amortization table (if any) or the monthly payment of a loan. The biggest aspect of a loan is that it can be adjusted as you deem it correct by being very detailed or just a simple note. Regardless of this, each loan agreement must be signed in writing by both parties. There are free models for loan contracts between friends and family. I Owe You (IOU) – The acceptance and confirmation of money lent by one (1) party to another. There are usually no details on how or when the money is repaid or lists interest rates, payment penalties, etc. Student Module 7.1 Loan 7.1 Page 1 Standard 7: The student will identify procedures and analyze the responsibilities of the money loan. Remember Mom`s interests, it`s not fair. if the bill can have a new truck, why not let me… If you have to borrow money from a friend, it is best to put aside your friendship and simply consider it as a business contract with friends and design an official money loan contract with all the details surrounding the transaction.