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Personal Loan Contract Or Agreement Form Sample Vatansun Doc Template Word Document Format

Personal Loan Contract Or Agreement Form Sample Vatansun Doc Template Word Document

Uploaded by: Carol Thomas at March 12 2018 05:20:46.

Unsecured Loans – Most standard loans are ‘unsecured’. This means that if the borrower does not pay back the lender then the lender will have to take the borrower to small claims in order to court order for the borrower to pay back the money.

A loan agreement is a contract between a borrowing party and a lending party, such as a bank or other financial institution. There are many different types of loan agreements, but they all follow a similar pattern. This agreement will protect both parties during their financial transaction, whether it is related to real estate, businesses, or other finances.

What, exactly, was the amount of the money owed? Most importantly, a loan agreement makes it clear that the money given was, in fact, a loan – and not a gift. Also, it tidies up the loan by setting out payment requirements. Is the loan to be paid back in installments, or all by a certain date? Is there any interest being charged on the loan, or late charges if the loan is not paid back?

The borrower should read the entire agreement. The borrower is responsible for understanding what is read. If the document is confusing, the borrower must question the document and get clarity before signing. When the borrower signs the document the individual is stating the document is clear, understood, and correct. The borrower and lender should have identification so the notary public can perform the official screening necessary at the loan signing.

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