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The family loan agreement is a template that allows two (2) family members construct a legal contract for the lending of money to a borrower in exchange for being paid back at a later time with interest. Considering the person that is borrowing the money is family, the loan is unsecured which means there are no assets behind the paper agreement.

If the borrower does not repay the debt, the lender’s only route to get their money back will be to go through legal action or small claims court.

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