An agreement letter for loan payment is signed between the lender and the borrower. It states the terms and conditions of the loan and the time period by which the loan will be paid. Writing a payment agreement letter is not difficult at all. You just have to be really clear about the terms and conditions of the entire process.
Here are some tips on how you can write a payment agreement letter.
1. Take Help from a Lawyer
You can take help from a lawyer in drafting out the letter. If you don’t want to do that, you can look for a sample letter over the internet and take help from that.
2. Write Down the Names of the Parties
You should add the names of both parties in the beginning of the letter along with the date the letter will be signed on
3. Mention the Consideration
If the lender is keeping something in return for giving the loan, it should be mentioned in the letter as well.
4. Write Down the Terms of the Loan
You should mention the proper terms and conditions under which the loan is being given. Mention the amount which is being borrowed as well, so as to avoid any conflict in the future.
5. Write Down the Payment Schedule
This is very important, so that both the parties would know when to pay and receive the certain amount on a specific date. If the lender and the borrower agree, you can add the term that the borrower is allowed to pay the loan early if he is capable of that.
6. Mention the Late Fee
If there is any late fee on the delayed payment, then it should be mentioned in the letter as well.
7. Finalize the Agreement
You can finalize the agreement by making both the parties sign it at the end.