Sample Contract for a Family Loan – Easy Yet Legal

In my article about lending money to a boyfriend, a reader asked for a sample contract for a family loan. Whether you’re lending money to a boyfriend or a family member, you need to get the details of the financial agreement in writing.

Here’s what my reader wrote on What to Do When Your Boyfriend Asks to Borrow Money

“Thank you for this article. May I ask if you could give me tips or a sample of a contract? I lent my boyfriend 12,000 pesos (Philippine peso) from my savings and 6,000 pesos from a loan to start a computer shop business. I have not talked this about with my relatives and friends. Just with one trusted friend, who also advised me to have a contract. Thank you and more power!”

Sample Contract for a Family Loan

Getting the details of the family or boyfriend loan in writing is NOT a mean thing to do. It’s actually loving and kind! Why? Because everyone has faulty memories. For instance, how much money was your last power bill? When was the last time you took money from the bank machine? What was the last argument you and your boyfriend had?

The reason you need a contract if you’re loaning your boyfriend or family member money is so you both remember what you agreed on.  You need to separate love from money. Don’t let your boyfriend or family member emotionally manipulate you into not putting your agreement in writing.

Put the details of the loan at the top of the contract

Here’s what you need to put on your financial agreement:

  • Your name
  • Your boyfriend or family member’s name
  • How much money you’re lending
  • The reason he’s borrowing money from you
  • The date you loaned your boyfriend or family member money
  • The date he will repay you

If you and your boyfriend decide that he will pay your money back a little bit at a time, then get the exact amount and dates that he will repay you.

Keep your financial proof

Make sure you save the proof of your financial transaction, such as withdrawals from your savings account, Visa or other credit card account, or checking account. You need to protect yourself while loaning your boyfriend money by making sure you can prove that you actually had the money that he wanted to borrow. You might even make this financial proof part of the sample contract for a boyfriend or family loan, just to keep it all in one place

Don’t make the financial contract complicated

See how simple the sample contract for a family loan can be? You don’t need an expensive legal document. You don’t even need paper and a pen – you could use toilet paper and crayons to write who is loaning money to whom, when, and when it will be repaid.

Remember that loans to boyfriends or relatives can cause problems

I wouldn’t expect the boyfriend or family loan to be a problem in your relationship, but I encourage you not to be naïve.

Sample Contract for a Family LoanMoney is a very touchy subject and causes all sorts of weird and even nasty things to happen between loving couples or families. If you decide that lending your boyfriend money is a smart thing to do, just be aware that “it seemed like a good idea at the time” is a leading cause of relationship mistakes! And financial mismanagement.

Give yourself permission to say no if someone asks to borrow money

You might love your boyfriend or family member with all your heart, and still say no if you’re asked to lend money. This sample contract for a family loan isn’t a blanket approval of all financial loans between boyfriends or family members! Most of the time, I actually discourage girlfriends from lending money to boyfriends because of the potential problems.

If your gut tells you to say no when your boyfriend asks to borrow money, then follow your instincts.

Tell your friends and family about the loan

Are you embarrassed or ashamed to tell your loved ones that your boyfriend or a family member is borrowing money from you? That’s a sign of a possible problem with the loan. Your reluctance to talk about it could mean that you know it’s a bad idea and you don’t really want to loan your boyfriend or family member money. Before you lend money, do some soul-searching. Trust your gut.

If your boyfriend or family member gets mad or upset because you refuse to lend them money, then you know you’re doing the right thing. If they’re emotional now, they’ll be emotional later. Their emotions will negatively affect their ability to repay the loan.

If your boyfriend or relative isn’t working, read 10 Highest Paying Jobs for College Students.

I welcome your thoughts on this sample contract for a family loan below. I can’t give you advice about lending your family members or boyfriend money, but it may help you to share your experience.


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