Uploaded by: Victoria Person at March 12 2018 05:10:14.
A personal loan agreement template is a document that anyone can use to protect themselves as a lender. Filling out a simple loan agreement ensures that there is no confusion between the lender and the person in need of funds. A loan contract template takes the difficulty out of designing a concise and precise document. If the document is to be worth anything at all in a court of law, it must be accurate and define every aspect of the loan in question.
Late fees: Many borrowers frown at paying more than they already must for a loan. Adding late fees to the agreement’s wording can help in preventing potential overdue payments in the future. The wording can allow for the late fees being something the lender applies at his or her discretion.
A simple loan agreement is a legal document that allows a lender to give access to money to a borrower with the intent on being paid back, at a specific particular date, and with interest. The amount of interest, usually described as a percentage (%) and compounded over a yearly basis, should be negotiated by the parties and may not be over the State’s usury limit. Once signed by the borrower and lender and all funds have been disbursed the agreement is legally binding and if the borrower defaults the lender may pursue legal action through small claims courts.
If a Lender is a company, and the Loan is being provided to a shareholder of that company, parties should be aware of division 7A of the Income Tax Assessment Act 1936 (Cth). Where the parties believe that division 7A applies to the Loan, they may wish to use an alternative agreement – the Division 7A Loan Agreement.
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