Sample Agreement Letter between Two Parties Lending Money

When two parties are entering into a financial agreement, it is crucial to have a written agreement that outlines the terms and conditions of the loan. A sample agreement letter between two parties lending money can help ensure that both parties understand their obligations and responsibilities.

Here is an example of what a loan agreement might look like:


[Name of Lender]

[Address of Lender]

[City, State Zip]

[Name of Borrower]

[Address of Borrower]

[City, State Zip]

RE: Loan Agreement Letter

Dear [Name of Borrower],

This letter serves as a loan agreement between [Name of Lender] and [Name of Borrower] for the sum of [Amount of Loan] USD. The loan shall be used for [Purpose of the loan].

The terms of the loan are as follows:

1. Loan Amount – [Amount of Loan] USD.

2. Interest Rate – The interest rate for this loan shall be [Interest Rate] percent per annum. Interest shall be computed on the outstanding principal balance of the loan and shall be paid monthly.

3. Repayment Terms – The loan shall be repaid by [Date of Repayment]. The borrower shall make monthly payments of [Amount of Monthly Payment] USD until the loan is repaid in full.

4. Security – The borrower shall provide security for the loan in the form of [Type of Security]. The security shall be held by the lender until the loan is repaid in full.

5. Default – The borrower shall be in default of this agreement if any of the following occur:

(a) Failure to make a payment on time.

(b) Failure to comply with any of the terms of this agreement.

(c) Any misrepresentation or omission of material facts.

In the event of default, the lender may declare the entire outstanding balance of the loan immediately due and payable.

6. Governing Law – This agreement shall be governed by and construed in accordance with the laws of [State or Country].

Please sign and return a copy of this agreement to indicate your acceptance of the terms and conditions.


[Name of Lender]

[Signature of Lender]


I hope this sample agreement letter helps guide you in creating a thorough and effective loan agreement between two parties. Remember, it is important to have a written agreement in place to protect both parties and ensure the loan is repaid in a timely and satisfactory manner.

याे सामग्री सेअर गर्नुहाेस्