If you have any queries in future, then you should be able to easily contact the lender. For this purpose, you should ensure that the company name, corresponding address and the phone number are mentioned in the loan agreement than the details about the agent who has been processing the loan for you.
It is important to note that some banks do report deferred payments as delinquent. Therefore, it is crucial to ask lenders how they report to credit bureaus before entering into a contract. Payments reported as past due can reduce FICO scores. Depending on credit scores, a reduction of ten points can place debtors in a lower credit category; making it difficult to obtain credit in the future.
A loan agreement is the document which represents the formal evidence of a loan. The document also includes important details such as covenants, positive or negative ones, the information on the collateral such as loan type and its value, as well as guarantees, the applicable interest rates, fees, the conditions according to which the loan is to be repaid, and the period of repayment envisaged.
Borrowers should create a folder to store loan document records, along with a record of phone and email correspondence. Always keep track of phone conversations by writing down a summary of the call, date, time, and name of the bank representative spoken with. When important documents are mailed, invest in the extra protection of tracking receipts. Certified letters should be sent with a return receipt request in case it is necessary to provide evidence the documents were received.
sample loan agreement between two people
money lending agreement format
simple loan agreement