In the event of a default, a written agreement can help prove to the courts that you were waiting for a repayment and intend to enforce the debt repayment. Please note that if both parties are individuals (for example. B family members or friends), a certificate should be used instead of a loan contract. Debt release – Once a bond has been paid in its entirety, this document must be established as proof that the borrower has met his debts. Delayed payment – If the borrower feels that he is delaying his payment, he must contact the lender and enter into agreements. Late surcharges may be charged. Interest is a way for the lender to calculate money on the loan and offset the risk associated with the transaction. 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. 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. This is important because there are details about when the loan contract is active and prevents it from moving elsewhere in case of dispute or non-payment on the contract. Has a friend, relative or colleague borrowed money from you? Read our article with smart strategies that will help you get your money back. Interest (Usury) – The costs of borrowing money.