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Loan agreement form Download & Full details about agreements (All types)

If you’re thinking about giving or taking a loan, a loan agreement is key—it offers financial security for both the lender and the borrower. That’s why we’ve put together some essential loan agreement forms for you to download, plus important info about them, so you can easily handle loan agreements.

Agreement  of loan

Download Loan Agreement Form Template & Access Complete Agreement Details

Personal loan agreement document

Personal loan agreements for those who take personal loans for personal needs like debt consolidation, emergency expenses or big purchases like home appliances. This loan doesn’t require any collateral, so having a personal loan agreement is super important.

Business loan contract form

Business loan agreements are for business loans. They are for those who want to expand their business or purchase equipment for their business. Business loans can be secured or unsecured, often collateral like property or equipment is required.

Auto loan agreement document

When you buy a car, bike or any other vehicle, an agreement between you and the financial institution is made, called auto loan agreement. Generally auto loans are secured, you need to make an initial down payment and if you fail to pay the EMIs, the bank can repossess the vehicle.

Payday lending agreement form

Payday loan agreements are for short term loans, typically 2 weeks to a month, with high interest rates and easy availability. Borrowers should read and understand the payday loan agreement carefully and make sure they can repay the loan on time to avoid extra charges.

Student loan agreement form

Student loan agreement between financial institution and student where loans are given to cover education expenses like tuition fees, books and living costs. Borrowers should read and understand everything in the student loan agreement and borrow wisely, considering their future income.

Mortgage loan contract form

A mortgage agreement is used for buying property, and the borrower mortgages the property as collateral for the loan. The lender has the legal rights over the property until the loan is fully paid.

Line of Credit Agreement:

A line of credit agreement is a financial contract that allows borrowers to borrow up to a certain limit. Borrowers can withdraw funds as needed and are charged interest only on the withdrawn amount. Read the terms of the line of credit agreement to avoid extra charges later.

Bridge Loan Agreement:

A bridge loan agreement is a financial contract used when a borrower needs immediate funds to buy new property while their old property is yet to be sold. Bridge loans have high interest rates and are mainly used in real estate transactions.

Secured Loan Agreement

Secured loan agreements are financial contracts where the borrower must mortgage an asset like property, vehicle, jewelry or other valuables to get a loan. Once the borrower pays back the loan with interest, they get their mortgaged asset back.

Unsecured Loan Agreement:

Unsecured loan agreements are financial contracts where the borrower doesn’t need to mortgage any asset to get a loan. These loans depend on the borrower’s creditworthiness. Since there’s no asset involved, they’re known as unsecured.

Key Considerations When Drafting a loan agreement document

Information about the Parties:

  • Attach the Aadhaar card and PAN card of the person you are lending to with the loan agreement.
  • Write the names of the parties in the first column.

Loan Details:

  • Specify the loan amount.
  • Clearly explain the terms and conditions.

Payment Schedule:

  • Mention the intervals for the EMIs.
  • Specify the interest rate and the penalty for late EMI payments.

For Secured Loans:

  • Provide a detailed description of collateral like the borrower’s property, car, gold, etc.

Repayment and Jurisdiction:

  • Make sure to include prepayment terms, a clear clause, late payment fees, and a legal action agreement form.
  • Jurisdiction is important because if you are from Delhi and the other party is from Haryana, then it will decide the court to approach in case of a dispute. So if you are a party from Delhi, add Delhi to the jurisdiction.

Witnesses and Stamp Paper:

  • Two witnesses will be required.
  • A ₹500 stamp paper is needed, which should be notarized and stamped.

Other Terms:

  • Add prepayment terms, definite clause, late payment fees and legal action agreement form.

Signature:

  • Get the signature of the person you are lending to on the agreement where needed.

For Big Loans:

  • If the loan amount is big, buy 2 ₹500 stamp papers, complete all formalities, keep one with you and give the other to them.

Conclusion

When it comes to loans, a loan agreement document is very important. But if you are not aware of the loan agreement information, it’s better to consult an expert and get all the information before filling the loan agreement form. We have also provided information on loan agreements, which will help you to create a loan agreement between two parties easily.

FAQ:

Why is a loan borrowing agreement format important?

Lender agreement format provides legal protection to both parties, prevents misunderstandings and sets clear terms and conditions.

Do we need witnesses in a loan agreement?

Generally, witnesses are not required for a loan agreement, but having witnesses can provide additional support in certain legal situations.

What is the ‘Force majeure’ clause in a loan agreement?

Force majeure clause covers the inability to perform the contract due to unforeseen circumstances such as natural disasters, war or change in law. This clause protects the parties in such situations.

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