Personal loan contract is the contract which has obtained the major place in the business. The daily transactions are often carried out between two parties. Sometimes, the agreement is also written in order to secure the financial position of both parties. Getting personal loan is not a decision of any individual person but anyone who is involved in it whether borrowing or lending the money should be involved in this process and should be given equal importance while designing the personal loan agreement.
Without personal loan contract, there can be very tough and complicated problems such as late payments, lack of trust or disagreement between two parties. In order to prevent all such situations, it is better to write a personal loan contract in a formal way. The main purpose of using this contract is to inform all the parties that the borrowed money will have to be paid after a specified time period.
The loan contract cannot be signed unless all the parties involved in the contract have clearly understood the terms and conditions of the contract. There must be an inclusion of the sections describing the amount of money being provided as well as the way by which the other party will pay it back.
All the conditions related to the loan are also very important to be mentioned in the contract. The interest which has been charged as well as the repayment schedule and the warranties of other parties also make the contract more authentic and useful. Following is given a sample of a loan agreement that can be used as guidance only and for all legal matters it is advisable to consult your attorney.
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