Are you thinking of lending your friends and family members money? Let’s discuss some things to consider first before going ahead with your lending plan.
It is rather convenient to get a private loan from family or friends than going to institutions or organizations that provide commercial loans. It’s cheaper and more flexible, plus it is quicker to process than going to banks.
Most people would definitely approach friends or family members first if ever they would need to loan. It is easier for the borrower to get a private loan because the requirements are not that strict when compared to a commercial loaning company.
Write a loan agreement letter
It is important for both parties the loaner and the borrower to sign a loan agreement between individuals. The sample loan agreement between two parties will include every pertinent details of the transaction including of course the amount of the loan, duration, the interest rates, the date of each payment, if there are collaterals it will also be indicated in the loan agreement letter. Please visit this site to get a sample loan agreement in Maryland.
If it is your first time to write a family loan agreement template, then it is recommended to go online and look for websites that offer instructions on how to write a loan agreement or there are also websites that lets you download a template with pre-written loan agreement, all you have to do is customize it to your liking and download.
For more information about getting a loan agreement in South Carolina, please visit this website.