Lenders may require borrowers to submit a financial letter of hardship which explains the circumstances causing them to require a loan deferment. Hardship letters are usually required with federal student loans and real estate transactions such as loan modifications.
The final fourth sections contains standard text including details such as contract information, the relationships that exist between the finance parties - in the event of more than one tender and more than one law that apply to the agreement.
To sum up, the loan agreement contains the terms and the conditions that are pointed out so that the borrower can draw out a loan. The terms and conditions are set by the lender, which can be a bank, or another type of financial institution. In fact, the loan represents a type of "facility" that is offered by the lender, and that is why the agreement on the conditions under which a loan can be taken out is also referred to as a facility agreement. The agreement comprises four sections.
Loan agreements fall into two main types, according to the type of lender, and according to the type of facility. With respect to the type of lender, there are bilateral loans and syndicated loans. Syndicated loans are provided by groups of lenders, and their structuring and arrangement, as well as their administration, are carried out by more than one bank, commercial or investment ones, and the lending banks are also referred to as arrangers.