Document background
The No Interest Loan Agreement is commonly used in situations where parties wish to formalize lending arrangements without charging interest, whether for personal, religious, charitable, or business purposes. This document is particularly relevant in Canada, where it must comply with federal legislation such as the Interest Act and provincial consumer protection laws. The agreement typically outlines the principal amount, repayment schedule, default provisions, and explicitly confirms the interest-free nature of the loan. It's frequently used in family lending, religious organizations following interest-free principles, charitable organizations, and social enterprise contexts. The document provides legal protection for both lender and borrower while maintaining the ethical or personal choice to avoid interest charges.
