A repayment letter template, also known as a payment agreement letter template, is a customizable document that allows a person to outline the specific details of loan repayment schedule. The letter is a legally binding contract that outlines the exact terms of the loan, such as amount and due date.
The main purpose of a payment agreement letter is to outline the terms of a loan that includes a promise of repayment from the party borrowing the money, known as the promisor, and the person or institution lending the money. In most cases, a loan repayment agreement begins with a section that states the names of both parties involved with the loan and acknowledges the purpose of the document. The letter then proceeds to list the specific terms, such as the total amount of the loan, the date by which the promisor must repay the lender, the amount of any interest the promisor is to pay on the loan and any additional details.
A repayment agreement letter template often includes blank or place holder sections for the important aspects of the form, such as the names and contact information of the parties. Some templates may also include several sections that outline each aspect of the loan with sample numbers and dates. If this is the case, it is important to modify such values to reflect the actual terms of the lease and avoid agreeing to incorrect details.