Need to lend money to a friend? You might want a written agreement. A “Sample Letter To Let Friend Borrow Money” is a formal document. It outlines the terms of the loan. This includes the amount, repayment schedule, and any interest.
We understand writing can be tough. That’s why we’re here to help. We’ll share different templates. These are examples of the letter. You can use them as a starting point.
Our goal is simple. We want to make it easy. You can adapt these samples. Create a personalized letter. Protect both you and your friend.
Sample Letter To Let Friend Borrow Money
Sample Letter To Let Friend Borrow Money
[Your Name]
[Your Address]
[Your City, State, Zip Code]
[Your Email]
[Your Phone Number]
[Date]
[Friend’s Name]
[Friend’s Address]
[Friend’s City, State, Zip Code]
Dear [Friend’s Name],
I received your request for a loan, and after careful consideration, I am happy to help you out.
I am willing to lend you $[Amount of Loan].
Here are the terms we’ve agreed upon:
* **Loan Amount:** $[Amount of Loan]
* **Interest Rate:** [Interest Rate]% (if applicable)
* **Repayment Schedule:** [Clearly outline the repayment schedule, e.g., $[Amount] per month starting on [Date]]
* **Final Payment Date:** [Date]
Please sign and return a copy of this letter to acknowledge your agreement to these terms.
I hope this helps you get back on your feet. I trust you will honor our agreement.
Sincerely,
[Your Name]
[Your Signature (if sending a hard copy)]
—
**Acknowledgment**
I, [Friend’s Name], acknowledge and agree to the terms outlined in this letter regarding the loan of $[Amount of Loan] from [Your Name].
[Friend’s Signature]
[Date]
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How to Write Letter To Let Friend Borrow Money
Subject Line: Setting the Stage
- Be direct yet affable. A subject like “Loan Request – [Friend’s Name]” immediately clarifies the letter’s purpose.
- Avoid ambiguity. Cryptic or overly casual subjects can be misinterpreted or overlooked.
- Subtlety is key: Steer clear of demanding language.
Salutation: Establishing Rapport
- Use their preferred name. “Dear [Friend’s Name]” is a solid, amicable choice.
- If you’re exceedingly close, a more informal greeting like “Hey [Friend’s Name]” might suffice, but gauge your relationship first.
- Maintain warmth but avoid excessive effusion.
Introduction: Laying the Groundwork
- Start by acknowledging your friend’s generosity and trustworthiness.
- Briefly explain the situation without delving into excessive minutiae. A concise overview is more impactful.
- Express your gratitude in advance for their consideration.
Body: The Quintessential Details
- State the precise amount of money you need. Clarity is paramount.
- Explain the reason for the loan with circumspection. Be transparent, but avoid oversharing.
- Propose a realistic repayment schedule. Be specific about the frequency and amount of installments.
- Offer collateral, if possible. This demonstrates good faith and provides security.
- Mention any interest, or lack thereof. Being upfront prevents future misunderstandings.
Terms and Conditions: Solidifying the Agreement
- Outline the loan’s terms explicitly. Document everything, from the principal to the interest rate (if any).
- Include a contingency plan. What happens if you’re unable to meet a payment deadline?
- Suggest a formal agreement in writing. While uncomfortable, it protects both parties.
Assurances: Reaffirming Your Commitment
- Reiterate your commitment to repayment. Emphasize your reliability and integrity.
- Express your understanding of the gravity of their decision. Show respect for their position.
- Reassure them that you value their friendship above all else.
Closing: Ending on a High Note
- Thank them again for their time and consideration.
- Use a professional yet friendly closing, like “Sincerely” or “Best regards.”
- End with your full name, followed by your contact information for easy follow-up.
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Frequently Asked Questions: Sample Letter for Borrowing Money from a Friend
This section addresses common inquiries regarding creating a sample letter when requesting a loan from a friend. It provides clarity on the essential elements and appropriate tone for such a sensitive request.
What key information should I include in the letter?
The letter should clearly state the loan amount, the repayment schedule, any interest involved (if applicable), and the purpose of the loan.
How formal should the tone of the letter be?
While it’s a letter to a friend, maintain a respectful and slightly formal tone to emphasize the seriousness of the transaction.
Is it necessary to include a repayment schedule?
Yes, a detailed repayment schedule is crucial to avoid misunderstandings and shows your commitment to repaying the loan.
Should I mention collateral in the letter?
If you are offering collateral, explicitly mention it and describe it clearly in the letter.
What if my friend doesn’t require a formal letter?
Even if your friend doesn’t require it, providing a letter helps ensure you are both on the same page regarding the terms of the loan and can help avoid future disputes.