Getting to know loan agreement : A loan agreement is a document wherein the terms and agreement of the lender and debtor is put into writing. It is the documentation that binds both lender and debtor to the terms of the loan. The agreement is also deemed as a protection for both parties if any of the said parties cannot deliver the obligation as agreed.
Prior to entering into a loan agreement, the "borrower" first makes representations about his affairs surrounding his character, creditworthiness, cashflow, and any collateral that he may have available to pledge as security for a loan. These representations are taken into consideration and the lender then determines under what conditions (terms), if any, they are prepared to advance money.
If you are planning to build your own home, the entire process can be extremely overwhelming. There are very few projects you or anyone else can take on that are more stressful and more prone to problems. One of the most dizzying aspects of building your own home is having a grasp on all of the legal agreements and contracts that you will need to enter into to get the job done.
A loan agreement is a contract between a borrower and a lender which regulates the mutual promises made by each party. There are many types of loan agreements, including "facilities agreements," "revolvers," "term loans," "working capital loans." Loan agreements are documented via a compilation of the various mutual promises made by the involved parties.
loan agreement format
loan agreement template
sample loan agreement between two people