Document background
The Friendly Loan Agreement is designed for situations where individuals wish to formalize a loan arrangement while maintaining the informal nature of their relationship. This document, governed by Danish law, provides a clear framework for documenting loans between friends, family members, or close associates. The agreement includes essential elements such as loan amount, repayment terms, and any applicable interest rates, while complying with Danish legal requirements, particularly the Danish Contracts Act (Aftaleloven) and Interest Act (Renteloven). It's particularly useful for protecting both parties' interests while avoiding the complexity and formality of commercial loan agreements. The document can be customized to include or exclude interest payments, specify flexible repayment terms, and add optional provisions such as early repayment or third-party guarantees.
