Writing a letter to a friend or family to borrow money can be fairly intimidating and nerve racking for anyone, as the thought of any future dispute over amount or repayments can be unnerving when dealing with people close to your heart. For this reason, it is best to write out a contract that both parties can look over and refer back to when needed. It also helps create a paper trail for any attorneys to look over, should they need to. This contract is straightforward and concise.
Loaned amount: £250
Final repayment date: 27/10/2016
Terms of loaned money:
On the 27th August 2016, I, John Doe, borrowed 250 GBP from the checking account of one Jane Doe. These funds will be expressly used for a car repayment at the start of the next month, September, as my work wages are clearing two weeks later this month as a result of a payroll error. I am going to repay £125 on the 27th of September, and another £125 on the 27th October via direct debit from my checking account. These funds will come from my two paychecks expected this month.
We have both agreed to these terms in full.