Simple Family Loan Agreement Template – UK

Disclaimer

The information provided is intended solely as a general example for setting up a personal agreement between family members regarding a loan. It does not constitute legal advice and should not replace consultation with a qualified solicitor experienced in UK financial or contractual matters. Laws and regulations may vary depending on the jurisdiction, and adjustments may be necessary to ensure compliance with local legal requirements. The use of this example is entirely at the user’s own risk, and we accept no liability for errors, omissions, or any consequences resulting from its implementation without professional legal review.

Please note: This is a sample Family Loan Agreement template for the UK, provided for illustrative purposes only. Actual terms may differ based on specific agreements and applicable laws.

Simple Family Loan Agreement UK Sample

Parties:

Lender: [Lender’s Name]
Address: [Lender’s Address]

Borrower: [Borrower’s Name]
Address: [Borrower’s Address]

Loan Details:

The lender agrees to lend the borrower the sum of £[Loan Amount], which the borrower agrees to repay under the terms specified in this agreement.

Repayment Terms:

The borrower shall repay the loan in [Number of installments] installments of £[Installment Amount], due on the [Due Date] of each month, commencing on [Start Date].

Interest:

The loan shall bear interest at a rate of [Interest Rate]% per annum, calculated on the outstanding balance.

Collateral:

This loan is unsecured / secured by [Description of Collateral], if applicable.

Governing Law:

This agreement shall be governed by the laws of England and Wales. Disputes shall be resolved within the jurisdiction of the courts of England and Wales.

Additional Provisions:

• The borrower agrees to use the loan solely for the purpose specified in this agreement.
• The agreement may be amended only in writing signed by both parties.
• Failure to repay the loan as agreed may result in legal action and recovery of owed amounts.

Location: ______________________

Date: ______________________