Borrower – The person or company that receives money from the lender, who then has to repay the money according to the terms of the loan agreement. Acceleration – A clause in a loan agreement that protects the lender by requiring the borrower to repay the loan immediately (both principal and accrued interest) if certain conditions occur. ☐ The loan is guaranteed by guarantees. The borrower agrees that the loan will be granted until the loan is fully paid by – A loan contract, also known as a change of funds, loan contract or fixed-term loan, can be used for loans between individuals or businesses. In case the borrower is late in the loan, the borrower is responsible for all fees, including all legal fees. Regardless of this, the borrower is still responsible for paying principal and interest in the event of default. All you have to do is seize the state in which the loan was taken out. Use the LawDepot credit agreement model for business transactions, student education, real estate purchases, down payments or personal credits between friends and family. Once you have information about who is involved in the loan agreement, you must describe the details of the loan, including transaction information, payment information and interest rate information.
In the transaction section, you indicate the exact amount owed to the lender after the agreement is executed. The amount does not include interest over the life of the loan. They will also detail what the borrower must pay in return for the amount of money they promise to pay to the lender. In the „Payment” section, you`ll find out how the loan amount is repaid, how payments are made (p.B monthly payments, on demand, a lump sum, etc.) and information on acceptable payment methods (p. B for example, cash, credit card, payment order, bank transfer, debit payment, etc.). You must include exactly what you accept as a means of payment, so that no questions are allowed about payment methods. In terms of legal forms and models, the credit contract model is valuable. Whether you are the person lending money or the lender, a contract is a necessity. The use of a loan agreement is prudent in such cases because it protects the borrower. The pre-defined terms of the loan are clear in the document.
The paperwork also provides protection for the lender. This is because the document serves as proof of the terms of the loan and what the borrower is willing to pay. 2. Interest rate. The parties agree that the interest rate on this loan is equal to the monthly rate. In addition, you must include a section describing all warranty information if you have one. A guarantor is also known as a co-signer. This person or company agrees to repay the loan in the event of a late payment from the borrower. They can add more than one guarantor to the loan agreement, but they must accept all the terms stipulated in the loan, just like the borrower.
Just as you have registered the borrower`s information, you must include the information of each guarantor and he must sign the agreement. They must provide their full legal name and address. If you don`t include a deposit, you don`t need to include this section in the loan agreement. Finally, you must include a section containing the date and place of the signing of the agreement. In this section of the loan agreement, you need to provide different information, for example. B the effective date of the agreement, the state in which a judicial procedure is to take place and the particular county within that state.