How Do I Write a Loan Agreement?

Answer

To write a loan agreement or contract, write the names of the people who are entering into the contract and identify each person or party as the creditor or debtor in the loan agreement. Write the principle amount of money borrowed in numeric form; for example, Jane Lee agrees to a loan of £3,000. Write the interest rate as the percent paid or earned for each year of the loan. For instance, Jane Lee agrees to a £3,000 loan with an interest rate of 1 percent. Write the terms of the loan in terms of how many years the debtor has to repay the loan; the common loan terms are 12 months, 1 year, 3 years, 5 years or 10 years. Write the use of the loan and how it will be used. Write a prepay clause to indicate if a prepay penalty will be imposed as a monetary or percentage value. Have the contract notarized and provide copies to the debtor and both the creditor and the debtor must sign and date the contract. Use a loan contract template and complete the template as directed. You will also be directed to indicate your role in the loan as well as the loan figure.
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How to Write a Loan Agreement
Loan agreements are legal documents that bind borrowers to terms of loans. These documents are normally created by attorneys representing lending firms. It is, however, possible to draw up a loan agreement to use in a private loan transaction. A... More »
Difficulty: Challenging
Source: www.ehow.com
It is not hard to write a loan agreement, all you have to do is sit down with the other party and decide whether there is going to be a collateral or not. After that, write down the amount and what time frame it will be paid back, make a copy of the agreement for the other party and have it notarized by the public notary. One should consult a lawyer to avoid any mistakes in writing up the agreement.
To write a loan agreement, you need to outline all information regarding the loan. You need to mention the amount of loan, interest, and any extra charges. You should include information that protects both parties.
Q&A Related to "How Do I Write a Loan Agreement"
To write a loan agreement you need to have a decided agreement between at least two parties. Make sure that the date, price, addresses, are correct.
http://answers.ask.com/Business/Finance/how_to_wri...
1. Negotiate the terms of the loan with the borrower (or lender, depending on who you will be in the transaction) In order to avoid problems when funding the loan, be sure to hammer
http://www.ehow.com/how_5638050_write-loan-agreeme...
There are a few different ways you can go about creating a loan agreement and each of them has their pros and cons mostly centered around cost and what you get for your hard earned
http://wiki.answers.com/Q/How_to_write_a_simple_pe...
Here you go. Source(s) http://www.tate.org.uk/research/taterese….
http://answers.yahoo.com/question/index?qid=200704...
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To write a loan agreement you need to have a decided agreement between at least two parties. Make sure that the date, price, addresses, are correct. ...
To write a loan agreement you need to have a decided agreement between at least two parties. Make sure that the date, price, addresses, are correct. ...
To write a loan agreement, you need to outline all information regarding the loan. You need to mention the amount of loan, interest, and any extra charges. You ...
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