Things You Need to Know About Loan Agreement
Deciding to borrow money from someone, a bank, or even a financial institution is such a huge decision to be made since you have to think about many things from the payment detail to the agreement. To document the process of agreement, you will need a written loan agreement. It is a legal statement between the lender and the borrower where the outline is the borrower promises to pay back the loan in the period given whether it is by using a schedule or in a lump sum. The documents serve as proof and protect both parties.
For you who decide to borrow money especially, it is important to know more about the loan agreement where the document is used to protect you. if the transaction of borrowing money has been done and there is no document as proof, the possibility to pay the loan they get is zero because they can avoid the payment. After all, there is no proof about it. Well, the detail that should be included in the agreement draft can follow the basic standard. You can also go with the simple form as like input the borrower and lender information correctly, the amount of money that should be paid back, how to pay the loan (by credit card, transfer, or cash), interest, due date, and term and condition.
Samples of Loan Agreement :
Further, loan agreement detail can be added to some important things. These additional elements also play an important rule to avoid something bad happen in the future. First is acceleration which means it is the consideration about moving up the payment date and immediate repayment if some following conditions arise: bankrupts, fails to make payments, pass away or dissolves, wants to pay off early, and many more. Amendment, collateral, governing law, joint and several liabilities, late charges, prepayment, and right to transfer are another additional detail can be included. At the bottom of this page, you will be able to download this type of template for free too.
Loan Agreement Template | Word – download
