Loan Agreement Letter and Its Sample

When you want to borrow money, or otherwise you will lend your money to your friend, relative, business partner, or institution, of course, you need to write that agreement in the letter. It is important to write the agreement about borrowing or lending money because if one of the parties violates the rule that has been approved and there is no written document, it will ruin the relationship between all parties.

Artikel 177. Loan Agreement Letter and Its Sample

What is the Loan Agreement Letter?

A loan agreement letter is an important document containing an agreement between the parties which are the borrower or the one who borrows the money, and the lender, the one who lends the money to others. The activity of borrowing or lending money should be written in the document to record the amount of money that is borrowed and the exact date to repay the money, so there will be no misunderstanding in the future.

What Should be Included in Loan Agreement Letter?

The main things that should be written in the loan agreement letter are:

  • The name of both parties who are included in the agreement, which is the borrower and the lender
  • The amount of money that is borrowed, and the amount that will be repaid
  • The exact date of borrowing transaction and the date of money will be repaid
  • The consequences of the parties who violate the rule

The Sample of Loan Agreement Letter

If you are in the situation to borrow money or to lend your money, you must need a loan agreement letter, and here we provide an example of a loan agreement letter that you can use as a reference.

This is the sample

Dear, Mr. Billy

Based on the application you send, it has been reviewed by our company, and we are pleased to let you know that we have approved your loan request for $6500. Thank you for six years of personal business with us in the past, and I wish you the best of luck with your new project. Please review the term of our agreement and don’t hesitate to ask any questions.

Cambridge Financial Service Ltd, the lender, will provide a loan of $6500 to JSY.Co, the borrower. The borrower agrees to repay the loan with interest at the rate of $600 in monthly installments from May 12, 2018, to March 12, 2020. The loan will be distributed on March 12, 2018. Payment will be accepted by online transfer into Account #29837230-04.

Promise to pay: The borrower promises to pay the loan amount with interest within two years of this agreement going into effect.

An online business account with Cambridge Financial Service for JSY.Co will be provided upon receipt of this signed letter. We provide the reconsideration loan term that can be up for four months from the date of this letter. Please sign below to receive your loan as a bank transfer. Thank you for being our loyal business partner, wish it will continue in the future.




Gerald Arnold

Business Account Director

Cambridge Financial Service



I understand the agreement of this loan contract and agree to repay the borrowed amount under this term.



Billy Smith

Founder & CEO


Date ________________________


That is all about the Loan Letter Agreement between the borrower and the lender that you may need. It is very important to write everything that becomes the agreement between both parties.



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