A payment plan agreement is a legal document outlining how a borrower agrees to pay back a lender over time. Payments are commonly made on a weekly or monthly basis until the debt is paid.
A payment plan agreement is a legal document outlining how a borrower agrees to pay back a lender over time. Payments are commonly made on a weekly or monthly basis until the debt is paid.
PDF DownloadA payment plan agreement is a legal document outlining how a borrower agrees to pay back a lender over time. Payments are commonly made on a weekly or monthly basis until the debt is paid.
4.5 | 99 Ratings Downloads: 13,993To create a more robust and effective agreement, the following conditions can be added to the agreement:
PAYMENT PLAN AGREEMENT
1. THE PARTIES. This Payment Plan Agreement (“Agreement”) is entered into on [DATE] , by and between:
Borrower: [BORROWER’S NAME] with a mailing address of [BORROWER’S ADDRESS] (“Borrower”), and
Lender: [LENDER’S NAME] with a mailing address of [LENDER’S ADDRESS] (“Lender”).
2. AMOUNT BORROWED. It is acknowledged that the Lender has given a loan to the Borrower in the amount of $ [AMOUNT] at an annual interest rate of [#] % for the purpose of: [REASON FOR LOAN]
3. PAYMENT SCHEDULE. Borrower agrees to make payments equal to $ [AMOUNT] towards the total debt to be made: (check one)
☐ – Weekly. Payments are to be made every [WEEKDAY] .
☐ – Monthly. Payments are to be made every [DAY OF THE MONTH] .
☐ – Other. [DESCRIBE]
Payments shall be due in accordance with the payment scheduled herein until the amount borrowed is paid.
4. LATE PAYMENTS. Payments not made within [#] day(s) after the due date may incur a late fee of: [DESCRIBE LATE FEE]
5. PRE-PAYMENT. Regarding pre-payment, the Borrower is: (check one)
☐ – Allowed to Pre-pay. Borrower can pre-pay the amount borrowed, in-full, at any time and without penalty.
☐ – Not Allowed to Pre-pray. Borrower cannot pre-pay the amount borrowed without a penalty of: [DESCRIBE PRE-PAYMENT PENALTY]
6. DEFAULT. Failure to make payments as agreed will result in a default, allowing Lender to take legal action to recover the debt. This Agreement shall be governed under the laws in the State of [STATE] .
Borrower’s Signature: _______________________ Date: __________
Print Name: _______________________
Lender’s Signature: _______________________ Date: __________
Print Name: _______________________