Friends and family loan agreement
This is a simple loan agreement suitable for lending to friends or family. It is intended to make clear to the borrower that the arrangement is "for real" and that the lender intends that the money should be repaid on time as agreed. It is ideal for lending in situations such as large one-off purchases, funding of events, and consolidation of other debts.
- Solicitor approved
- Plain English makes editing easy
- Guidance notes included
- Money back guarantee
About this loan agreement
Lending to friends and family can be difficult.
Not using a written agreement can result in confusion about when the money should be repaid and with how much interest, or a loan could be mistaken as a gift, either by the borrower or other family members or friends.
A written agreement may seem too formal - especially if it is written in a legalistic style. It may prompt the borrower to question your relationship and whether you trust him or her.
This loan agreement is a simple agreement that aims to bridge the gap between not using an agreement at all, and using a longer, more comprehensive one.
When to use this agreement
This is a simple agreement. It contains no provisions for security or for a guarantor. If you need these, look at our other Loan agreement templates or see the most likely alternatives below.
However, it is a legally binding document and you can take action against the borrower if he or she doesn't pay you on time, or uses the loan for a reason not agreed.
Use this agreement when you need to record the loan, but where you have a high level of trust with the borrower.
It is suitable for situations such as:
- lending to a friend to buy a car or other high priced item
- lending to a child for a house deposit
- lending to a child to fund a wedding
Either party may be abroad or in New Zealand, and the loan can be of any size.
Alternatives to this document
If you need a more comprehensive agreement, but are happy for the loan to be unsecured, see our standard Unsecured loan agreement: person to person; private or business.
If you need a guarantor, then see Loan agreement: person to person; secured by guarantee.
The law in this document
There is little specific statutory law relating to personal lending, so you are free to agree the terms you want with the borrower. We give you options for different situations.
Drawn outside the Credit Contract and Consumer Finance Act 2003, this agreement is not suitable for companies in the business of lending or providing credit to consumers.
The contents of the agreement
- Definition and purpose of the loan
- Sum of the loan and advances
- Repayment conditions
- Interest payable
- Miscellaneous legal matters
This template is supported by drafting notes so that you will know whether you can safely delete some provision. It is most unlikely that you will want to add new provisions, but if you do, it is easy. Our layout and use of plain English also make it very easy to edit by deletion.
This document was written by a solicitor for Net Lawman. It complies with current New Zealand law.
What other customers thought
Average customer rating
By Maureen Wempe 17 August 2017
This was so easy. The loan document was exactly as described. I found the descriptions were really useful, especially in explaining the reason for witnesses not being required, which I was able to show to everyone. The price was great and the peace of mind for everyone was worth far more than the document cost. Thank you so much.
By Shane Passfield-Bagley 14 February 2017
As this was my first experience using this type of service, i didn't know what to expect. I was pleasantly surprised with the simple yet complete structure of the form. This service has saved me countless hours and headaches by ensuring i have a leg to stand on legally, should the agreement be encroached on. I will definitely recommend your company to anyone who requires the appropriate information/services.
By Simon Eaton 28 November 2016
Simple, straightforward, clear notes, met my needs perfectly.
By Neil Bennett 20 January 2016
Exactly what I needed - something simple - very cost effective and fit for purpose
By Theresa Markham 23 June 2015
Very fast response once I had paid the fee for the document.
Easy enough to open and read. Nice clear print and set out clearly for non-legal experienced people (like myself) to navigate. - That was my biggest concern!
Good options to remove or personalise clauses as needed.
Yes would recommend this service to others
By Philip Evans 06 February 2017
Although we have not finished using the agreement yet it seems very good and covers all points with a New Zealand law focus. The easy ability to add and remove items as required is an advantage also.
Service was good and the price for the document very good. If there is any comment to make is that the review price for this document is a bit steep at $218.00. It is not very big and is just a private (for us anyway) agreement.
Were the price been more reasonable then we might avail ourselves of it.
By Allan Evans 13 March 2016
Needed a suitable agreement. That one did the trick. Hassle free service.
By Amanda Gordon 12 November 2015
By Brian Yates 11 August 2015
Good service and the document suited my needs well. It wasn't exactly what I was after, but I was able to easily make they required changes.
By Bruce Crawford 25 May 2015
I covers exactly what we needed it to
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Thanks guys, great service/product.
Cheers Dean"Dean Harper
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"...Yes very useful. I understand the terminology etc as I've seen a fair few legal docs before. Notes are very helpful. Gives me some base insight without the expense of a solicitor! "John K