Can I create a legally binding contract?

Published on: 18 July, 2022

Updated: 17 May, 2023

Yes, you can!

Pigeon allows you to generate a contract for your loan that can be signed and kept on file to show that both parties entered a binding agreement - it's called Contract Protection!

Adding a contract through Contract Protection gives Lenders and Borrowers the option to quickly generate a written loan agreement (i.e. a ) for both parties to sign before finalizing their loan on Pigeon.

When you use this feature, Pigeon will create the contract based on the loan terms and repayment schedule you entered when creating the loan (you can view or download the agreement template here). Both parties will then add their address and digital signature before proceeding to activate the loan & begin moving funds.

Once your loan is active, both parties will be able to view and download a PDF copy of their signed contract on their Loan Details page.

Adding a contract does not mean that Pigeon will provide you with any security, guarantee, or protection against loss in the event that your loan arrangement doesn't work out as planned, or enters default. Pigeon will not be a party or a signatory to any loan agreement, nor will Pigeon Loans have any duties or powers as a guarantor, arbitrator, or mediator. Our promissory notes are also generated as a best effort and should be reviewed by professional legal counsel in the scenario of enforcement.

Why would I want to add a contract?

There are plenty of reasons why clearly documenting your loan agreement may be a good idea. Check out some of our blog posts on the matter to learn more:

Was this article helpful?