Document background
The Friends And Family Loan Agreement is essential when individuals wish to formalize monetary lending arrangements with close relations or friends in England and Wales. It provides a clear framework for the loan terms while maintaining the informal nature of the relationship. This document helps prevent misunderstandings by clearly stating the loan amount, repayment schedule, any interest charges, and default provisions. It offers legal protection for both parties while being less rigid than commercial loan agreements. The agreement is particularly useful for substantial sums or when the loan period extends beyond a few months.
