Family Loan Agreement
Our Family Loan Agreement template:
- UK lawyer drafted for reliability
- simple to edit and complete
- ideal for use between family members
- can be completed within 15 minutes
How Does It Work?
- 1. Download
- 2. Edit
- 3. Print
- 4. Sign
This family loan agreement is a version of our standard loan agreement template that has been customised for use between family members. It does not provide for the giving of any type of security against the loan. For this reason it is recommended for use only between close family members, where you trust they will have the wherewithal to repay the loan when it is due. The template is in the form of a short agreement, which you will find easy to use. (This template should not be used for a loan to a family-owned company – instead use one of our standard, guaranteed or secured loan agreements for that – you can find links to those to the right.)
Using this Family Loan Agreement template
Once you have bought the family loan agreement template, you can download it in Word format. The document can then be easily edited to your own requirements.
The template contract has been drafted in a flexible manner to provide for a range of situations. For example, you may decide to charge interest or not to. The agreement is designed to accommodate both options.
A copy of the template will be stored in your Legalo account. When we update the template, a copy will automatically be available to you in your account free of charge. This ensures that if you ever need to use the agreement again, you will always have an up-to-date copy at no further cost to you.
Why put in place a written contract?
Even if a loan is being made between members of a family it is prudent to record the loan in writing. One benefit of this is that the money can then be proven to be a genuine loan rather than income.
Another advantage is that when a loan is made between people within a family it is sometimes done in a very flexible manner. For example payment may not be asked for for many years. In such circumstances a written record of the loan will make sure that you all remember what was originally agreed. This can assist unnecessary arguments later on.
Guide to this Family Loan Agreement template
When you buy the template, it comes with a helpful guide to completing it – a walk-through of all its clauses. This makes it very easy for your to complete. For a preview of a very similar guide, please have a look at our guide to our standard loan agreement. Please note the family loan agreement template does not include the clause 6 covenants that are mentioned in that guide and does not include references to making the loan to a company.