A loan contract is a type of a contract which consists of the points which regulate the conditions of the loan. Loan contract usually relate to loaning of cash. Even though there are cases of oral loan contracts but written contracts are more common. They secure the risks involved and clearly define the responsibilities of the involved individuals or parties on paper.
The first kind of a loan contract is defined by the type of the lender. This category subdivides into bilateral and syndicated loans. The second kind is defined by the type of facility. This category is divided into the type of loans which are paid on installment basis and the type where an amount is withdrawn at a time and then interest is paid regularly on the amount drawn.
The loan contract must consist of:
- facility and purpose
- payment provisions
- provisions for expenses
- contact information of involved parties
One can navigate through this site and find the detailed loan contract information.