Loan Agreement Templates- loan between family members

Happibunni

Evening All,

Apologies if this has been asked before but can anyone recommend website for templates for loan agreements? One relevant to Scots law would be helpful.

Thanks :beer:

HappyMJ

Loans are supposed to be regulated so any agreement you make will just be an informal agreement to pay X on day X every month for X months. if the person you made the loan to does not pay you would have to take them to court for the unpaid capital...but you won't get any further interest. The court will look at their financial capability to pay and you might find you only get a few pounds each month from their benefits/wages...even if that means paying for decades.

Would you consider getting a solicitor involved to witness the agreement? An agreement signed after both parties have taken legal advice would hold up much better in court.

My advice...don't do it. Situations change they may not be able to repay but you want your money back and in the process of demanding that money back you might find your relationship at an end.

forgotmyname

As above if this is a friend or even family then you REALLY NEED to search this site where people ask for help when it all goes wrong and they dont payup.

Only do it if your willing to lose the money.

Happibunni

Thanks for the replies.

Interesting that you have both made the point of being careful who I lend to - I am actually the recipient and just wondered if there was a way of putting this on a more formal footing without going to a solicitor.

Apples2

There is, by borrowing from a bank.

What is your plan if you cannot make the repayments (please don't try to convince anyone there will be no problem or everyone would be borrowing at a low apr).

Thrugelmir

Happibunni wrote: »

I am actually the recipient and just wondered if there was a way of putting this on a more formal footing without going to a solicitor.

And if a dispute arose on the agreement itself, i.e. it's interpretation?

Happibunni

Thrugelmir wrote: »

And if a dispute arose on the agreement itself, i.e. it's interpretation?

So, better to formalise through a solicitor then. Thanks for that.

PeacefulWaters

Happibunni wrote: »

So, better to formalise through a solicitor then. Thanks for that.

Better not to borrow from family at all.

chanz4

unless the person lending has a credit license its not valid the same as a bank loan

Sandpiper49

Leaving aside the pros and cons of lending within the family, does anyone know where I can find a FREE personal loan agreement form. Every site advertisng FREE legal forms I have been on over the last hour ends up with me being asked for my credit card details. This doesn't seem FREE to me! Thanks.

Happibunni

Found the same problem. Ended up copying a document from the net and typing out myself.