Formal promissory note between family members documenting a personal loan, interest rate, and repayment schedule. Helps establish bona fide loan treatment for tax and estate-planning purposes.
The Family Loan Agreement is a ready-to-use finance & investment template you can send for signature in minutes. It is written for 2 signers (lender and borrower) and, by default, expires 30 days after it is sent if left unsigned. It covers family, personal loan, promissory note, irs afr. Like every Abundera Sign template it is a convenience draft structured for ESIGN Act and UETA compliance, not a substitute for legal advice. Each signed copy is sealed with PAdES-LTA digital signatures, dual RFC 3161 timestamps, and a tamper-evident evidence package in WORM storage.
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# Family Loan Agreement This Family Loan Agreement ("Agreement") is entered into as of ___________ by and between: **Lender:** ___________, residing at ___________ ("Lender"); and **Borrower:** ___________, residing at ___________ ("Borrower"). Relationship of Borrower to Lender: ___________ --- ## 1. Loan Amount Lender agrees to loan Borrower the principal amount of ___________ (the "Principal"), which shall be advanced ___________. --- ## 2. Purpose of Loan The purpose of this loan is: ___________ --- ## 3. Interest Rate 3.1 **Rate.** This loan shall bear interest at the rate of ___________% per annum on the outstanding Principal balance, calculated on the basis of a 365-day year. 3.2 **Applicable Federal Rate Note.** The parties have set the interest rate above with awareness of the IRS Applicable Federal Rate (AFR) published monthly under 26 U.S.C. § 1274(d). Setting the rate below the AFR for the applicable term may result in imputed interest income for Lender and potential gift tax consequences. The parties are encouraged to confirm the current AFR with their tax advisors. 3.3 **Interest Accrual.** Interest shall begin accruing on the date funds are disbursed. --- ## 4. Repayment Terms 4.1 **Repayment Schedule.** Borrower shall repay the loan as follows: ___________