Sample Letter of Loan Repayment Agreement

19 May 2022 gruyeredistrictcc

When it comes to borrowing money, it`s essential to have a clear understanding of the terms of repayment. A loan repayment agreement is a legal document that outlines the agreed-upon terms between the lender and borrower for paying back the loan. It`s an essential piece of documentation for both parties to ensure that there are no misunderstandings or disputes in the future.

Here is a sample letter of loan repayment agreement that can be used as a guide for creating your own:

[Date]

[Name of Lender]

[Address]

[City, State ZIP Code]

Dear [Name of Lender],

I am writing to confirm our agreement regarding the repayment of the loan you provided to me on [Date]. The loan amount was [Amount in Dollars] and carries an interest rate of [Interest Rate] percent per annum.

The repayment schedule is as follows:

1. The loan will be repaid in [Number of Payments] equal installments.

2. The first payment will be due on [Date of First Payment].

3. Subsequent payments will be due on [Date of Subsequent Payments], [Date of Subsequent Payments], and so on, until the final payment is made on [Date of Final Payment].

4. The payments will be made in the amount of [Amount of Each Payment]. This amount includes the principal amount of the loan plus the accrued interest.

5. I will make the payments on the agreed-upon dates via [Payment Method].

6. In the event of late payment, I agree to pay a late fee of [Late Fee Amount] dollars for each day that the payment is late.

I understand that failure to make the payments as agreed may result in legal action on your part to recover the amount owed. I also understand that this agreement becomes a legally binding contract once it is signed by both parties.

Please let me know if there are any changes or modifications to the above terms that you would like to discuss.

Thank you for your cooperation.

Sincerely,

[Your Name]

[Your Address]

[City, State ZIP Code]

[Your Email]

[Your Phone Number]

In conclusion, having a loan repayment agreement in place is essential for both the lender and borrower to ensure that they are on the same page regarding the repayment terms. By using the above sample letter as a guide, borrowers can create their version of the document and ensure that they are not caught off-guard by any unexpected fees or consequences.