In conducting money lending and borrowing transactions, of course, an agreement is needed which contains an agreement whose contents have been agreed by both parties. That is what is called the Loan Agreement. Loan Agreement is a lending and borrowing contract which regulates the rights and obligations of both parties.
Loan Agreement is a valuable document that has legal strength that must be made when the person borrows or borrows money. This document can also provide protection to lenders and if at any time the borrower does not return the amount of borrowed money.
Loan Agreement Available at Online
If you are in a situation where you have to make a loan agreement with a party, you can use the loan agreement template available online. There is a simple loan agreement that can be used if the contents of the agreement are not too many. Loan agreement template is a fill in the blank so you can fill it in accordance with the agreement that will be done.
Loan agreements can be of various types, it might be a business loan agreement, personal loan agreement, or loan contract. Sometimes you will also find a simple loan agreement.
The amount to be borrowed must be in printed form to avoid disputes due to loan terms. In addition, if both parties agree with the interest on the loan amount, then this must also be written down. And the most important thing is also the repayment period whether a few days, weeks, months or years.
Information that must be in the loan agreement
As previously stated, a loan agreement is a legal document. Therefore, the document must contain clear specific information so that when you take your dispute it will make the differences. The following are things that must be ensured that there are included in a loan agreement:
- Complete information about the borrower: this includes name, address, and contact details of the lender.
- Complete information about lenders: this includes name, address, and details of the contact of the borrower
- Date of ratification of the agreement: The date stated must be in accordance with the date on which the borrower, lender, and witness sign the loan agreement. If it is not, you can specify the date in advance of the date of signature.
- How to return or repay: option for loan repayment. Whether it will be cash or cash or in other forms.
- Cancellation option: is a requirement that allows the cancellation of a loan approved by the lender.
- Benefits of initial payments: provisions for initial payments and whether there will be penalties in repayment of loans.
- Principles of loan details: Amount of loan principal or amount deducted by interest.
- Interest facts: Interest which both parties agreed and also if the borrower must pay interest first.
When a person or group is in a lending and borrowing transactions in large number, a binding agreement is needed to provide comfort for the borrower and the lender. The agreement is called a loan agreement. When you are in a situation requiring a loan agreement format, you can search for a loan agreement template online.