Almost all models provide bonds – although the amount borrowed is also guaranteed against other assets. A loan is not legally binding without the signatures of the borrower and lender. For additional protection for both parties, it is strongly recommended that two witnesses be signed and that they be present at the time of signing. While loans can be made between family members – a family credit contract – this form can also be used between two organizations or companies that have a business relationship. The interest on a loan is paid by the state from which it originates and it is subject to the usury rates laws of the state. The usury rate varies from each state, so it is important to know the interest rate before the borrower is subject to an interest rate. In this example, our loan comes from the State of New York, which has a maximum usury rate of 16% that we will use. If you need an agreement with more protection for the lender, please read other documents in this file, including the abbreviated version of the loan agreement. Another step would be some security against the loan – see the loan contracts guaranteed on it. For a secure loan against tangible assets of all sizes and types, such as.

For example, a car, warehouse, equipment or fixed installation. Yes, in this loan agreement, it is possible to include a provision that the borrower can repay all or part of the loan at any time by giving him a specific notification. It is possible to include an early refund tax, which is a percentage of the amount borrowed. A loan agreement is a contract by which a lender agrees to lend a certain amount of money to a borrower. It sets the terms of the loan, such as the interest rate and repayment period, and imposes obligations on both parties. All models offer strong protection to the person or party who lends the money. This is more true for documents in which the reason for granting credit is a matter rather than to help family or friends. We are simply of the opinion that, since money is not a gift, everyone expects it to be refunded.