Loan agreement
Borrowing between private individuals is very common.
Before reading further, you should understand that private contracts in Spain can be written in any language. Contracts or loan agreements written in other language also have legal effect. So if people are not good at Spanish, they can also write in English or any other language.
Simple loan agreement template
Hereby you can a find a simple example of a loan agreement in Spanish:
CONTRATO DE PRESTAMO
Part I: Date, address and information about the parties.
En …… , a …… de …… de ……
En (Madrid), XX/XX/XXXX
REUNIDOS (both parties)
De una parte Don/ña …… (Mr./Ms. XX), mayor de edad (adult), con domicilio (address located) en …… , calle (street) …… nº (number) …… y DNI/NIE (ID or residence number) …… En adelante el PRESTAMISTA (hereinafter referred to as the lender )
De una parte, Don/ña …… (Mr./Ms. XX), mayor de edad (adult), con domicilio (address located) en …… , calle (street) …… nº (number) …… y DNI/NIE (ID or residence number) …… En adelante el PRESTATARIO (hereinafter referred to as borrower )
Ambas partes intervienen en su propio nombre y derecho (Both parties exercise their rights on their own behalf) y han convenido otorgar CONTRATO de PRÉSTAMO , con arreglo a las siguientes (Decide to sign this loan contract and be bound by the following terms)
CLÁUSULAS (Terms and Conditions)
Primera (first): El Prestamista entrega en este acto en concepto de préstamo a Prestatario , que reconoce haberlo recibido, un capital de XX euros , cuyo destino es la adquisición de vivienda (The Lender lends to the Borrower XX euros for the purchase of the Property at the time of signing this Contract. The lender indicates that it has received the principal amount)
Segunda (second): El capital prestado ha de devolverse en un plazo máximo de …… . (The principal should be returned in X amount of time)
Tercera ( third): El presente préstamo no devenga interés alguno. (This loan will not incur any interest.)
Y en prueba de conformidad los otorgantes firman por duplicado el presente contrato. (Both parties agree to the above terms and sign this contract in duplicate)
Lender’s signature
(Firma del prestamista)
Lender’s signature
(Firma del prestatario)
The loan contract can be a very simple contract. As long as the wishes of both parties are clear and there are no complicated terms, it can usually be written in several paragraphs.
The above template is a very simple version. The template may not be suitable for all transactions, please add modifications according to the specific situation.
Related article: Transfer tax in case of loans: tax return instructions (form 600)
