An interest contract is the legal understanding document which is commenced between the lender and the borrower in order to fix the rate of interest and clauses to confirm the deal.
Sample Interest Contract:
Contract Number: 123/ IC
Effective date of the contract: October 14th, 2010
This interest contract is made by and between:
Name: Hudson Finance & Company Pvt. Ltd
Address: 45/ K, Office Number: 12,
Wing- C, Carlike Road,
Contact Number: 6859 583 5829
Hereinafter considered as the lender
Name: Mr. Jack Peterson
Address: 56/ J, Blue Apartments
Red Hill Area, Toronto, Canada
Phone Number: 2939 879 5738
Hereinafter known as the borrower
This contract is starting on October 22nd, 2010 and is terminating on October 22nd, 2012.
Hereby, following mentioned are the Promissory Interest Contract terms & Conditions:
The borrower party is agreed to pay a fixed rate of interest of 5% on the principal amount $ 45690. This rate of interested will be paid for two years.
The borrower will submit the monthly instalment of $ 1230 to the lender and will collect the receipt for the same.
The lender will issue a receipt on every instalment and will keep a record of total paid instalments. If the borrower keeps a clean record during all transactions, the lender can exceed the limit of the contract.
The termination can take place only when any of the parties raise an issue due to monetary reasons.
Therefore, both the parties are requested to signature in order to accept the interest contract:
Sign of the lender:
Sing of the borrower: