A loan contract agreement is a document created whenever an individual or a company takes loan a financial organization or a company.
This document mentions the amount of loan taken and also the interest rate that the borrower needs to pay and also the time period in which he needs to return the loan. This document is made so that there is no default in terms of repayment by the borrower.
Sample Loan Contract Agreement:
This specific loan agreement has been made on the 24th of October,2010 between Chris Bale, who is the Borrower and Gold Bank who is the Lender as per the laws of the state of Arizona. Both the borrower and the lender together will know as the ‘Parties.
This agreement states the terms and conditions to be followed by the Lender and the Borrower.
For the amount received, the Borrower promises to pay the Lender the total amount of $50000 at an interest rate of 5% per annum within a stipulated time period of 5 years. If the Borrower fails to make the payment within the stipulated time period, he will be considered as the defaulter.
Additional Loan terms
- The Borrower needs to make a payment of $1000 on a monthly basis till the loan period ends. The payment due date will 30 days after this agreement is executed.
- The Borrower needs to make payments by cheque at the following address:
Lily Street, Detroit
- If the Borrower fails to make payment on three consecutive due dates, he will be considered as the defaulter.
The signatures of both the Borrower and the Lender are below as a sign of witness:
Chris Bale. Jack Woo
Branch Manager, Gold Bank
Dated:24th October,2010 Dated:24th October,2010