Loan Agreement

Overview

A comprehensive legal agreement that outlines the terms of a loan between a borrower and a lender, as well as set out a payment plan for the borrower to pay back the lender.

What is a loan agreement?

A loan agreement is a comprehensive legal agreement that outlines the terms of a loan between a borrower and a lender, as well as set out a payment plan for the borrower to pay back the lender. It acts as an enforceable promise between the parties.

What does a loan agreement cover?

A loan agreement covers, amongst other things, the loan amount, the purpose of the loan, when and how the borrower can withdraw funds, when and how the loan will be repaid, interest payable, early repayment, whether the loan is secured or unsecured, assurances or “warranties” given by the borrower, obligations and restrictions on the borrower to help ensure the lender will be repaid, circumstances in which the lender can demand immediate repayment of the loan and more.

When should I use a loan agreement?

You should use a loan agreement whenever you are lending or borrowing money.

Do I need a loan agreement?

A loan agreement is an essential document whenever you need to lend or borrow money. It clearly outlines how and when the loan will be repaid, which will ensure both parties are protected during the lending process.

Further information

Collateral or security may be used to secure the repayment of a loan. It is usually a tangible asset, such as a vehicle or other asset worth the equivalent of the loan itself. If the borrower defaults on their loan payments, the lender can go to court to foreclose the collateral to remedy their loss.

Why you'll love us

Our expert team will complete your work within 3 working days and send it directly to you. No expensive legal fees, no intimidating meetings, no wasted time, no hidden costs. Just quality legal work, for the best price.

Legal Services

A wide range of services that cater to businesses and individuals accross the UK. Our expert team are ready and will have your work completed within 3 business days.

The Smart Choice

Easy to use, easy to gain. YouLaw is the smart choice for individuals and businesses looking to get great legal work in the most convenient and cost effective way possible.

Ready to get started?

Get a free quote, and start now.