Document background
The Loan Agreement Between Friends is designed for use in Belgium when individuals wish to formalize a lending arrangement with someone they know personally. This document becomes particularly important when significant sums are involved or when parties want to ensure clarity and avoid future misunderstandings. It complies with Belgian Civil Code requirements regarding loan agreements (Articles 1874-1914) and general contract law principles. The agreement includes essential details such as loan amount, purpose, repayment schedule, interest (if any), and default provisions. While maintaining a less formal tone than commercial loan agreements, it still provides legal protection for both parties and can be used for enforcement if necessary. The document is particularly relevant in situations where traditional bank loans might not be suitable or when parties prefer to keep their lending arrangement within their personal network.
