When it comes to borrowing money, whether from a friend, family member, or financial institution, it`s important to have a written agreement in place. A loan agreement serves as a legal document that outlines the terms and conditions of the loan, and helps to protect both the borrower and lender.

Creating a loan agreement from scratch can be a daunting task, which is why using a template can be helpful. Here are the key elements that should be included in an agreement for borrowing money template:

1. Names and contact information of the parties involved: This includes the borrower and lender, along with their addresses and phone numbers.

2. Loan amount and repayment terms: State the amount of the loan, the interest rate (if applicable), and the repayment schedule. This should include the frequency of payments, the due date for each payment, and any late fees or penalties for missed payments.

3. Security for the loan: If the loan is secured, clearly state what asset is being used as collateral (such as a car or property). If there is no collateral, indicate that the loan is unsecured.

4. Default provisions: Specify what happens if the borrower fails to repay the loan. This may include accelerating the remaining balance of the loan, charging late fees, or taking legal action.

5. Governing law: Indicate which state laws will govern the loan agreement.

6. Signatures: Both parties should sign and date the agreement. If there are witnesses, their signatures should also be included.

Using an agreement for borrowing money template can save time and ensure that all necessary information is included. However, it`s important to tailor the agreement to the specific loan being made. If you have any questions or concerns, consult with a legal professional.