Convert To Word Legal Oklahoma Loans Lending Forms For Free

A loan agreement should comply with state and federal regulations, which protect both lender and borrower should either side fail to honor it. Terms of the loan contract and which state or federal laws govern the performance obligations required by both parties will differ depending upon the loan type.

At a minimum, your loan contract should include: Your name and the borrower's name. The date the loan was granted. The amount of money being lent. Minimum monthly payment. Payment due date. Interest rate, if you're charging interest. Consequences for defaulting on the loan.

This does not necessarily have to be a legally drafted loan agreement, but, the better it is legally worded, the better your chances of recovering the cash. Without a written agreement, it is one party's word against the other, whether the money was a gift or a loan. Money claims are still subject to court fees.

Lenders have a professional duty of care to you, the borrower. It would be irresponsible for them to let you borrow money for someone else without making sure you understand that you will be personally liable for the debt, as well as the risk to your personal assets if you cannot repay the loan and interest.

What should be in a personal loan contract? Names and addresses of the lender and the borrower. Information about the loan co-borrower or cosigner, if it's a joint personal loan. Loan amount and the method for disbursement (lump sum, installments, etc.) Date the loan was provided. Expected repayment date.

Write a contract A verbal agreement may seem fine ? and in many cases it will work out with no issues ? but to give yourself a little extra protection it's helpful to have the loan agreement in writing. This provides a record of the agreement should there be a dispute later down the line.