Document background
The Friend To Friend Loan Agreement is essential when individuals wish to formalize a personal loan arrangement with a friend in Belgium. This document is particularly relevant when friends want to ensure clear terms and protect both parties' interests while maintaining their relationship. The agreement should be used whenever a significant sum of money is being lent between friends, regardless of the purpose of the loan. It includes crucial details such as the loan amount, repayment terms, any applicable interest, and default provisions, all structured to comply with Belgian law. While less formal than commercial loan agreements, it still provides legal protection and clarity for both parties. The document becomes particularly important for tax compliance, as Belgian law requires declaration of personal loans above certain thresholds.
