Create A Loan Agreement Using Agreement Template
One of the documents you have to sign when you are borrowing money from a legal financial institution is a loan agreement. A loan agreement is a document used to record repayment schedule to show that a borrower commits to repay the money to the lender.
Loan agreement can be useful for both parties, the borrower and the lender. The purpose of loan agreement is to act as an enforceable promise between the both parties where the borrower must pay back the loan in line with a repayment schedule.
Nowadays, we don’t have to write down the agreement manually, we can make use of template to get thing done. All we need to do is to fill the required fields with information like name, amount of money being borrowed and so on.
Let’s take a look at how to make use of loan agreement template.
Download the Loan Agreement Template
There are a lot of templates you can download for free on the Internet. The most important thing is that you know that the template is the right one. Then, follow the instructions from the website so you can get the template.
Edit the Template
When it is done, you can open the template in your computer and edit just like what you need. Commonly, you have to edit the agreement date, name of the lender, name of the borrower, amount of money, payment schedule, and signature. You may also edit the agreement if it is necessary so it is suitable for your agreement. You can also save the document and edit it anytime you want later.
Read and Print the Agreement
Read the loan agreement template one more time to make sure that you have understood the points and fill the blank spaces with the correct information. You have to understand and fill the document correctly because it is related to the rule of the loan.
Sign and Give the Document to the Borrower
If the agreement document is ready, you can print it and sign the document. The document becomes a legal sign and you have to follow all the rules on it. By signing up the document, it means both of them are agreed with it and ready to follow all the points there.
If it is not, you will get a penalty or punishment. The penalty or punishment is also written on the agreement. The borrower and lender have to keep the document until the agreement is finished. The document also becomes strong evidence in the court if one of them breaks the agreement.
That’s it! Creating a loan agreement is easy, right? The template helps you a lot and it works if you need the agreement document immediately. You can also use the template as an example to the students or anyone who want to know about a loan agreement document. You don’t need to spend your money at all only to prepare a loan agreement.