Simple Agreement Letter for Loan – [Edit & Download]
David Thompson
789 Maple Avenue
Dallas, TX 75201
January 12, 2025
Sophia Roberts
123 Pine Street
Miami, FL 33101
Subject: Simple Agreement Letter for Loan
Dear Sophia Roberts,
This letter serves as a formal agreement between David Thompson (the Borrower) and Sophia Roberts (the Lender) regarding a personal loan provided by the Lender to the Borrower.
The terms of the agreement are as follows:
- Sophia Roberts agrees to lend David Thompson the sum of $50,000 for personal financial use.
- David Thompson agrees to repay the loan in full by January 12, 2027, including interest at an annual rate of 7%.
- The loan will be repaid in 24 equal monthly installments of $2,232.50, starting February 12, 2025.
- Payments will be made via electronic transfer to the bank account specified by Sophia Roberts.
- In the event of a late payment, a penalty of $250 will be added to the overdue installment.
- If the Borrower misses three consecutive payments, the entire remaining balance, including accrued interest, will become immediately due.
- The Borrower has the option to prepay the loan amount in full or part without any prepayment penalties.
- Both parties agree to resolve any disputes arising from this agreement under the jurisdiction of the state of Texas.
This agreement is effective as of January 12, 2025, and will remain valid until all obligations outlined above have been fulfilled.
Both parties confirm their understanding and acceptance of the terms by signing below.
Sincerely,
David Thompson
(Signature)
Sophia Roberts
(Signature)