Document background
The Loan Repayment Agreement Between Friends is essential when individuals engage in personal lending arrangements in the Netherlands. This document serves to formalize verbal agreements and prevent future misunderstandings by clearly outlining loan terms, repayment schedules, and consequences of default. While maintaining the informal nature of friendly agreements, it incorporates necessary legal elements from Dutch civil law, particularly from Books 3, 6, and 7A of the Burgerlijk Wetboek. The agreement is particularly useful when lending substantial amounts or when the repayment period extends over a longer term. It provides a clear framework for both parties while offering legal protection should the relationship or circumstances change. The document can be used for various purposes, from helping with property purchases to supporting business ventures, while keeping the arrangement within the bounds of personal lending.
