Most credits, often personal credits, are often made on a verbal agreement. This puts the lender at risk and many have often had the disadvantages. This underlines the importance of a manageable loan contract and involvement in the loan process. Not only is a loan contract legally binding, but it also guarantees the lender`s money during the loan repayment period. The money is loaned for a period of six months. Both the borrower and the lender agreed on the terms of payment. Therefore, the payment must be made for a period of six months on the 12th of each month. The first payment date is March 12, 2014, and the last payment date is August 12, 2014. The money is borrowed at an interest rate of 6%. Therefore, the monthly payment amount is $1767. As a result, litigation is less likely to arise from litigation and, if there is a dispute, the agreement may be what the court relies on to decide. In addition, it is preferable to have signed the letter to a notary, although it may require a small amount in most cases. If this is not possible, at least have the letter signed to the witnesses.
It is also important that both parties have a copy of the agreement. A loan agreement has the name and contact information of the borrower and lender. This loan agreement will be concluded on February 12, 2014 between:- The promisor, the friend who lends the money, receives assurances that the beneficiary, the friend who lends the money, will not claim that the loan was in fact for a much larger amount. Default – If the borrower is late due to default, the interest rate is applied in accordance with the loan agreement set by the lender until the loan is fully repayable. A loan agreement is a written contract between two parties – a lender and a borrower – that can be obtained in court if a party does not maintain its end. The letter is intended to protect both parties who enter into the agreement. It is best to have legal proof of who borrowed the money, when they borrowed it, and specific terms of repayment. The legal proof of all parties protects the bank accounts of one of the two parties as well as the friendship. A lender can use a loan contract in court to obtain repayment if the borrower does not comply with the contract. Payee and Promisor both agree with the payment agreement defined above.
After that, you have to mention how the money is repaid, there is interest on it or it is interest-free. If the money is borrowed for a number of periods, include the date of each period for which the rate of borrowed money must be paid with interest or interest-free. In addition to the date, you must also include the payment method such as cheque, cash, draft application and traveller`s cheque. It is also worth mentioning the amount of the fine if the borrower does not pay the money back on the due date. For those who do not have a good credit history or if you do not entrust their money to them, because they have a higher risk of default, a co-signer will be included in the credit contract.