Make a family loan agreement that’s clear, complete, and properly signed — built for loans between family and friends, not a generic legal form. Free to draft, both of you e-sign on your phones, done in minutes.
A loan between family or friends is a binding contract in Canada — but only if it's clear enough to enforce. A vague "I'll pay you back" or a free template missing key terms is where things fall apart. A solid family loan agreement spells out:
LendRight builds all of this as you answer a few plain-language questions, and flags common statutory issues for your province as you go.
Who's lending, how much, and how it's paid back. The agreement writes itself as you type.
The borrower gets a secure signing link — they can sign from their phone whenever they're ready.
A clear, signed record — so the loan stays a loan and the relationship stays whole.
Free templates and generic legal-form sites give you a one-size-fits-all document. The trouble is the things that make a family loan agreement unenforceable are invisible unless you know Canadian statute — an interest rate that quietly breaks the criminal cap, missing repayment terms, no proper signatures. LendRight is purpose-built for the family/friend case and flags these for you. If you want a broad library of every document type, a general service like LawDepot makes sense — but for a family loan done right, a focused tool is faster and simpler.
Free to draft. Both sign on your phones. Done in minutes.
Create my loan agreement →Yes. A loan between family or friends is a binding contract if it identifies the parties, the amount, and the repayment terms, and both sides agree. Putting it in writing and having both parties sign makes it far easier to enforce if there's ever a dispute.
No, for an ordinary personal loan. A guided, plain-language agreement covers what's needed. Complex situations — loans secured against property, or large business loans — are worth a lawyer's review.
Yes, within limits. The effective annual rate must stay under the criminal interest cap of 35% APR. Many families use the CRA prescribed rate to avoid tax complications, or lend interest-free.
LendRight supports loans between residents of Canadian provinces and territories outside Quebec for now. Quebec's civil-law system differs, so it isn't supported yet.
Who runs this: LendRight is a product of RULE8 Inc.
Last reviewed: July 3, 2026 by the LendRight Editorial Team.
Sources: Criminal Code s. 347 (35% APR criminal interest cap); provincial limitation and electronic-commerce legislation (varies by province); CRA prescribed rate (3% for 2026).
Scope: self-help document automation for ordinary personal loans between individuals — not legal or tax advice, and no lawyer-client relationship is created. Quebec is not yet supported. Get a lawyer for secured or business loans, separations, estates, or disputed intentions.
Electronic signing: e-signatures are recognized for ordinary contracts across supported provinces; each agreement is a locked PDF with a tamper-evident certificate of signers and timestamps. A signed agreement is strong evidence — enforceability always depends on the facts of the loan.
LendRight provides self-help document automation, not legal advice, and no lawyer-client relationship is created. For complex situations, consult a licensed lawyer in your province.