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Loan Contract Between Friends for Indonesia

Loan Contract Between Friends Template for Indonesia

A legally binding loan agreement template designed for use between individuals in Indonesia, typically friends or acquaintances, who wish to formalize a personal lending arrangement. The document complies with Indonesian Civil Code (KUHPerdata) requirements and includes essential provisions for loan amount, repayment terms, and default scenarios. It balances legal compliance with accessibility, using clear language while maintaining necessary legal protections for both lender and borrower. The agreement includes witness provisions as required under Indonesian law and can be notarized for additional legal security.

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What is a Loan Contract Between Friends?

A Loan Contract Between Friends is a crucial document for formalizing personal lending arrangements in Indonesia, ensuring legal protection for both parties while maintaining the informal nature of friendly agreements. This document type is particularly relevant when individuals wish to lend money to friends or acquaintances while maintaining clear terms and legal enforceability under Indonesian law. It includes essential elements required by the Indonesian Civil Code (KUHPerdata), such as loan amount, repayment schedule, any applicable interest, and default provisions. The agreement helps prevent misunderstandings and provides a clear framework for dispute resolution while maintaining the social relationship between parties. It's especially useful for significant loan amounts where verbal agreements would be insufficient for legal protection.

What sections should be included in a Loan Contract Between Friends?

1. Parties: Identification of the lender and borrower with their complete legal names and addresses

2. Background: Brief context of the friendly loan arrangement and relationship between parties

3. Definitions: Key terms used in the agreement including 'Loan Amount', 'Interest Rate' (if any), 'Repayment Date'

4. Loan Details: Specific amount being lent, purpose of the loan, and disbursement method

5. Repayment Terms: Payment schedule, method of repayment, and any applicable interest

6. Default Provisions: Consequences of missed payments and process for handling defaults

7. Representations and Warranties: Basic statements confirming parties' legal capacity and authority to enter agreement

8. Governing Law: Confirmation that Indonesian law governs the agreement

9. Signatures: Execution block for both parties with date and witness provisions

What sections are optional to include in a Loan Contract Between Friends?

1. Interest Provisions: Include when the loan carries interest - specifying rate and calculation method

2. Early Repayment: Include when early repayment is allowed, specifying any conditions or penalties

3. Security: Include when any assets are provided as security for the loan

4. Insurance: Include when requiring life or other insurance to secure the loan

5. Dispute Resolution: Include when parties want to specify mediation or other dispute resolution methods

6. Assignment: Include when transfer of rights needs to be addressed

7. Force Majeure: Include when parties want to address unforeseen circumstances affecting repayment

What schedules should be included in a Loan Contract Between Friends?

1. Schedule 1 - Repayment Schedule: Detailed breakdown of payment dates and amounts

2. Schedule 2 - Loan Disbursement Details: Bank account or other payment details for loan disbursement

3. Schedule 3 - Security Details: If applicable, details of any security/collateral provided

4. Appendix A - Proof of Identity: Copies of official ID documents of both parties

5. Appendix B - Witness Details: Information about witnesses to the agreement signing

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Indonesia

Publisher

Ƶ

Document Type

Loan Agreement

Sector

Banking

Cost

Free to use
Relevant legal definitions





















Clauses




















Relevant Industries

Personal Finance

Private Lending

Financial Services

Legal Services

Real Estate

Small Business

Education

Healthcare

Retail

Relevant Teams

Legal

Compliance

Risk Management

Personal Banking

Wealth Management

Document Processing

Advisory Services

Private Client Services

Relevant Roles

Financial Advisor

Legal Counsel

Personal Banking Manager

Wealth Manager

Risk Management Officer

Compliance Officer

Small Business Advisor

Private Client Manager

Legal Document Specialist

Notary Public

Personal Finance Consultant

Industries






Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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