Having a loan drafted is important to protect yourself and the money you have lent, even if it is to friends and family that you trust. Particularly when you are loaning a lot of money or where there is some risk associated with the loan you should also consider having the loan secured by an asset such as a vehicle or home, set out clearly in your Loan Agreement. Making the payment schedules and interest clear will protect your personal interests and remove any ambiguity related to the lending of the money.
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