A bank loan contract is an official document which is drafted when an individual or an organization takes a loan from a bank. There can be various different reasons for taking the loan like to buy a new house, for further education or to buy a new car etc. The contract states the loan amount, the interest rate to be paid and the term in which the borrower has to repay the loan amount.
Sample Bank Loan Contract
Bank Loan Contract Number: HG 521
Date of registering the contract: 24th of April 2011
This bank loan contract has been drafted between Earl Gray referred to as the borrower and residing at:
41 Cool Deal Road
New Lee New Pee 4124
And I See Bank referred to as the bank with main branch located at:
41 Hot Pot Road
New Lee New Pee 4136
As per the contract the borrower has taken a personal loan to get married from the bank which he promises to pay back within a period of five years. The loan amount is $50000.
Terms and conditions to be followed by both the parties:
- The interest rate on the loan will be 12% per annum. Even if there is an increase in the market interest rate within the loan period, the interest rate of this loan will remain same.
- If the borrower goes bankrupt and is unable to pay his loan, the bank has the right to cease all the properties of the borrower.
Signature of the borrower: Signature of the bank:
Earl Gray Joy Paul
(Branch Manager, Bank Loan)