http://www.lawyerslegalformsanddocuments.com/business-legal-forms/personal-loan-agreement/ - A loan agreement is a contract between which regulates the terms of the loan. Loan agreements usually related to get cash loans, but also used specific contracts to regulate the securities lending market.
What is a Personal Loan Agreement? There are different types of loans that are available in the market but it is the personal loans that have the maximum number of takers. The main reason for this is the frequency of necessity of funds and also the readiness with which they are available to the borrower too. However, all the loans that are borrowed are made through only after entering into an agreement and the same applies for personal loans too. A personal loan agreement is a binding contract between the creditor and the debtor where borrowing has taken place on specific terms and conditions. It is these terms and conditions that govern the repayment or extension of the loan. Majority of the jurisdictions set out specific rules and regulations which the lenders must definitely comply with so as to grant loans to the borrowers. The major purpose of the Personal Loan Agreement is in identifying and defining the components of a working relationship between the two parties. It is also set out to identify the responsibilities of both the parties involved and this holds good till the duration of repayment of the loan. In most of the countries the loan agreement will have to comply by the standards that are set out by the local laws or the national laws. This is in this manner in order to facilitate an advantageous working relationship between the creditor as well as the debtor. And when there is compliance shown towards these regulations, there is every possibility that one can seek legal redress if there is a failure on the part of the parties involved in honoring the commitment. The personal loan agreement will provide both the parties with legal protections as well as rights should any of them fail in upholding the terms that are laid out in the personal loan contract. There are quite a number of issues which are defined and addressed in the loan agreement. The agreement contains the amount loaned, full contact information of the parties, applicable interest rate and repayment terms too. The responsibilities and rights of both the parties are laid out in the text of the loan agreement. It is therefore, strongly recommended that the debtor goes through the terms and conditions carefully, understands his responsibilities and rights towards the creditor so that he does not feel he is caught unfairly in a lurch. Personal loans may be saviors at all times. So, rather than putting all your savings into a major purchase, you may go in for a personal loan so that you are prepared for a rainy day and at the same time you are meeting your current requirement too.
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