Friendly loan agreement
A written record of a personal loan and how it will be repaid.
Opens Dastavo with this paper ready to fill, on this computer or in the app. No account needed.
iPhone and iPad: coming to the App Store · Android: coming to Google Play
Not yet reviewed by a lawyer. Check every line before it is signed.
How the paper begins
With Dastavo's sample details; the people and places are fictional. The words in blue are the ones you fill in.
LOAN AGREEMENT
This agreement is made and executed at Amarnagar on 12 October 2026 by and between:
Vikram Singh son of Shri Harbans Singh, aged about 52 years, resident of House No. 45, Gulab Colony, Amarnagar, Tehsil and District Amarnagar, Punjab (hereinafter called the "LENDER", which expression shall, unless repugnant to the context, include his heirs, legal representatives and assigns) of the FIRST PART.
AND
Kabir Sharma son of Shri Dev Sharma, aged about 44 years, resident of House No. 7, Basant Vihar, Amarnagar, Tehsil and District Amarnagar, Punjab (hereinafter called the "BORROWER", which expression shall, unless repugnant to the context, include his heirs, legal representatives and assigns) of the SECOND PART.
NOW THIS DEED WITNESSETH AND THE PARTIES HEREBY AGREE AS UNDER:
1.That the Lender has today lent ₹3,00,000 (Rupees Three Lakh only) to the Borrower by bank transfer, the receipt of which the Borrower acknowledges.
2.That the loan carries simple interest at 9 per cent a year.
3.That the Borrower shall repay the loan in 10 monthly instalments of ₹30,000 from 01-12-2026, with interest on the balance. The Borrower may repay earlier without any penalty.
The rest of the paper is in Dastavo.
What to bring
Papers to bring
- Identity proof and PAN of the lender and the borrower (photocopies; the originals to show)
- Proof that the money was paid: the bank transfer record, or the cheque or draft number and date
- The repayment plan agreed (instalments, dates and interest), and the numbers, dates and bank of any post-dated cheques given as security
- Two witnesses, each with an identity proof
Where to go
Signed by both before two witnesses, usually on e-Stamp paper of the value the state fixes; the lender keeps the original. It is not registered and notarising it is optional, but land or a house given as security needs its own registered mortgage deed.
Fee
The e-Stamp duty follows the state's schedule (some states charge a loan agreement by its amount); ask the e-Stamp centre for today's amount. The Notary's fee, if you have it attested, is paid at the counter.
Good to know
- Lend and repay by bank transfer or cheque: the income-tax law bars taking or repaying a loan in cash above a limit.
- Get a receipt for every repayment, or see that it shows in the bank record.
- Someone who lends money as a business may need a licence under the state's money-lenders law; a one-off loan to a friend usually does not.
- If it is not repaid, send "Notice for recovery of a friendly loan" and do not wait long: the time to sue is usually three years.
Papers and fees can change. Check with the office before you go. Guidance only, not yet reviewed by a lawyer.
Stamp paper
Deeds and agreements carry stamp duty that depends on the state, the document and its value; some must be registered with the Sub-Registrar. Check the current duty and registration rules before printing on stamp paper.