A loan security contract is used as the official evidence between borrower and money lender, that property or assets belonging to borrower have been kept as security against the given loan. This type of contract includes the details of the borrower and the lender, specifications of the property kept as security and commitment clauses.
Sample loan security contract:
Loan Security contract Number: 34/ SC
This loan security contract is entered between Mr. Daniel Parker, hereinafter known as the lender, AND, Mr. Austin Pitt, hereinafter referred as the borrower.
Permanent address details of the parties:
- The Borrower
Address: #2500, Nathan In,CA, USA
Phone: 763 657 8976
- The Lender
Address: 6th avenue, St. Peterson Street, CA, USA
Phone: 7644 560 232
This contract is commencing on December 10th, 2011 and is ending on December 10th, 2012.
- Details of the Property Kept as security
Address: House no. #122, 4th Avenue, CA, USA
Hereby, to obey the loan security contract, following mentioned are the conditions:
Borrower has received an amount of $ 15,000 from the Lender as loan, with an interest rate of 12% per year.
- Obligations & Responsibilities:
The Lender will receive $750 per month as the monthly instalment as loan repayment on the 5th of every month. Borrower will have to pay these instalments until the principal amount and applied interest are fully paid back.
Hence, Both the parties are requested to validate the contract:
Signature of the Lender:
Mr. Daniel Parker
Singed by the Borrower:
Mr. Austin Pitt
Signature of the Witness: