Document background
A Loan Repayment Agreement Between Friends is essential when private individuals in Singapore wish to formalize a lending arrangement with clear, legally binding terms. This document helps prevent misunderstandings and provides legal protection for both parties by clearly stating the loan amount, repayment schedule, interest rates (if applicable), and consequences of default. While more informal than commercial loan agreements, it still maintains compliance with Singapore's legal framework while preserving the friendly nature of the arrangement. It's particularly useful for significant loan amounts or longer repayment periods where clear documentation is crucial.
