Lending money to a friend can be a tricky situation, and it`s important to have a clear agreement in place to ensure that both parties are protected. A lending agreement template can help you outline the terms of the loan, so that you and your friend can avoid any misunderstandings down the line.

Here are some key points that should be included in your lending agreement:

1. Loan amount and repayment terms: Be specific about how much money you are lending and when it will be repaid. This should include the amount of the loan, the interest rate (if any), and the repayment schedule.

2. Collateral: Will the loan be secured by collateral, such as a car or property? If so, make sure that you include details of the collateral in the agreement.

3. Late fees and penalties: If your friend is not able to make repayments on time, you should include a clause outlining any late fees or penalties.

4. Use of funds: If the loan is for a specific purpose, such as to pay for a car or medical expenses, make sure that you include this in the agreement.

5. Signatures: Both parties should sign the agreement to indicate that they understand and agree to the terms of the loan.

Creating a lending agreement template can be a valuable tool for anyone who is considering lending money to a friend. It helps to ensure that both parties are on the same page and that there are no surprises or misunderstandings down the line.

While a template can be a good starting point, it`s important to remember that each loan agreement is unique, and the terms of your agreement should be tailored to your specific situation. If you`re not sure how to create a lending agreement, it`s a good idea to consult with a lawyer who can provide guidance and ensure that the agreement is legally binding.