Family loan agreement checklist: what to prepare.

A family loan is easier to document when everyone has the same details in front of them. This checklist covers the information PACT asks for, from names and addresses to the amount and repayment dates. It helps turn a conversation into a structured record that can be referred to later.

This is general information only, not advice about anyone's situation. PACT provides no legal, tax or financial advice. PACT is not a lender and never holds or moves money; family members arrange transfers directly.

1. Names, addresses and the relevant state

Have the full names and home addresses of each person lending or borrowing ready, including suburb, state and postcode. PACT also asks how the people involved are related and which state or territory the property or family is based in. PACT covers every Australian state and territory.

2. The amount and what it is for

Note the loan amount in Australian dollars and a short description of its purpose. If it relates to a property, have that property's address ready. PACT asks about the source of the funds and whether the money has already been advanced. For an existing transfer, have the date and transfer record available so the details can be checked.

3. The repayment details being recorded

PACT asks whether the arrangement has monthly repayments, a fixed term or repayment on demand. Depending on the answers, the process asks for amounts and dates, such as the monthly payment and first repayment date. It also asks whether interest applies.

A checklist cannot decide those terms for a family. Where a detail is still undecided, flag it as a question for discussion rather than treating an assumption as an agreed term. Questions about the implications of an arrangement belong with an appropriately qualified independent professional.

4. Other information the process asks about

The guided questions also cover matters such as other siblings, the borrower's relationship status, proximity to Age Pension age and whether a bank has requested a gift letter. These questions provide context for the drafting process. This guide does not assess pension eligibility, tax consequences or how a bank will treat an arrangement.

5. A shared check before signing

Names, amounts and dates are easy places for a typing error or a different recollection to slip in. A shared review gives the people involved an opportunity to spot those differences before signing. Keep the signed document and transfer records accessible, alongside a record of repayments, so the arrangement is easier to follow over time.

See the document before starting

PACT brings the details into a structured drafting and signing process, with a document vault and repayment ledger. The ledger records repayments; it does not collect or transfer them. The sample family loan agreement shows the document format using example details.

Start the guided questions or see PACT's pricing and what is included.