How to Make a Contract to Borrow Money

104 14

    Making a contract to borrow money

    • 1). Approach the person you wish to ask to lend you money. Put together a quick budget showing your monthly expenses, any estimated income, and the amount of time you need financial assistance. Even if you are looking for a one-time infusion of money, it is wise to approach your lender with a basic budget.

    • 2). Discuss conditions of the loan, including any interest you may be required to pay back, and any other terms the lender requests. You also should decide the rate of payment, specific payment dates, the total amount due, the final due date, what happens if you default on the loan, and how collateral may be used to secure it.

    • 3). Prepare a formal contract by typing this information into a document. First, create a section titled "Government Law" that stipulates how the laws in your state shall govern the contract. Second, type "Lender: in another section, followed by the lender's name. Third, type "Borrower" followed by your name and address. Fourth, create a section that includes the principal amount and the payment schedule. Fifth, spell out the details of the payment plan, including any interest or collateral. Finally, both parties should sign and date the document at the bottom.

    • 4). Print two copies of the contract, sign both, and get each one notarized. It is always a good idea to receive a notary stamp for additional security, and will help you leave a professional impression on your lender.

    • 5). Make your payments on time and follow through with your agreement.

Source...
Subscribe to our newsletter
Sign up here to get the latest news, updates and special offers delivered directly to your inbox.
You can unsubscribe at any time

Leave A Reply

Your email address will not be published.