Loan Agreement Template

May 3, 2017




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Loan Agreement Template

 

The Loan Agreement Template: Everything You Need to Ensure Your Transaction Is Legal

Have you been searching for a comprehensive loan agreement template to use for either business or personal reasons? Did you know that there are many different types of templates available online? If not, this information may come as a welcome surprise. Here we will show you the various types of loan agreement forms currently available, and show you what pieces of information are necessary if you want to ensure the agreement is legal and binding.

What Is a Loan Agreement?

Whether the economy is booming or mired in a recession, one thing that seems to remain constant is that people need to take out loans to pay for a variety of higher-priced goods and services. But how do you ensure that the money you are shelling out will be paid back? Are you comfortable with just a handshake and somebody’s word? Probably not, and that is why a loan agreement is so very important.

A loan agreement is a legally binding contract between two parties—the borrower and the lender—that spells out the exact terms of the loan. This could include such items as the amount to be borrowed, the interest you can expect in return, and the repayment schedule. Once the loan agreement is signed by the borrower, he or she has, in essence, made a legal pact with you as the lender that the money will be paid back in full and within a reasonable timeframe. Without a loan agreement, the loan is not deemed binding under the law, making it extremely difficult for you to collect should the borrower default.

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Loan Agreement Template: What Types Are Available Online?

The Internet is a virtual treasure trove for any number of business documents, including all sorts of loan agreements. In fact, if you did a quick search on your favorite search engine you would probably find loan agreement templates for all of the following:

Home or Property Loans
Automobile Loans
Motorcycle Loans
Boat Loans
Loans for Recreational Vehicles
Student Loans
Personal Loans
And Much More…
Loan Agreement Template: What Should Be Included?

While there are many different types of loan agreement forms, they all have a few things in common. Below are a few examples of what should be included on any loan agreement template:

Lenders name, address, phone number and any other contact information
Borrower’s name and information
Total amount to be borrowed
Amount of interest to be paid during the course of the loan
The amount of each monthly payment the borrower will need to make
The date each month when payments are due (for example, the 3rd of every month).
Information on what the loan was for (for example, a home, car or boat).
Signatures of both the borrower and the lender.
Consequences, including legal action that will be taken should the borrower default on the loan.

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The loan agreement is the only legal safeguard available to lenders, which is why a loan agreement template is so beneficial. It contains all the necessary information for you, complete with language that ensures the document will become legally binding once signed by both parties involved.




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