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A family loan agreement is a document that outlines the lending of money between individuals with relation by blood or marriage. Instead of simply lending money to a family member without official documentation, this legally binding contract provides a blanket of trust for both the lending and the borrowing party. What are the terms of a family loan agreement? Family loan agreements follow the same principles as other lending contracts and can be created with nearly any. That are agreed upon by both parties. Included in these agreements are name and information of each party, amount of the loan payment schedules, special contingencies, and late payment terms. Since family loans are usually established between individuals that know each other well, they dont always include interest as other loans commonly would like any other legal. This agreement should include full names and addresses for both parties and should be dated, signed, and witnessed by at least two others. Furthermore, it
