General Loan Contract

By | February 27, 2015

A general loan contract is an agreement between a borrower and lender regarding a loan that has been lent for a general purpose by the lender to the borrower.

Sample General Loan Contract

Agreement date: ______________ (fill the registration number & date of acceptance)

This loan agreement is commenced between:

Contact details of the company offering the loan:

Name: ____________________________

Address: __________________________

Phone Number: _____________________ (hereinafter referred to as the lender).

And

Details of the individual:

Name: ___________________________

Address: _________________________

Landline Number: __________________(hereinafter referred as the borrower).

The lender is ready to sanction $ ____________ as the loan amount at __%. (Total loan amount along with the agreed percentage rate).

This loan agreement is valid from ___/____/____ and is ending on: ___/____/___. [Give both dates].

Terms & covenants:

The borrower will pay an instalment of $ _________ per month for ______ years. [Amount & tenure of loan]

Any late instalment will be accepted with $ _______ as a fine.

In case the borrower is unable to complete the loan following mentioned property will be auctioned to recover the loss:

________________ (property guarantee details)

Prepayment: Borrower has the right to pay back the whole exceptional amount at any time. If Borrower pays before time, or if this loan is refinanced or replaced by a new note, Lender will refund the unearned finance charge, figured by the Rule of 78-a commonly used formula for figuring rebates on instalment loans.

Late Charge: Any payment not remunerated within ten (10) days of its due date shall be subject to a belatedly charge of 5% of the payment, not to exceed $____________ for any such late instalment.

Default: If for any reason Borrower not succeeds to make any payment on time, Borrower shall be in default. The Lender can then order instant payment of the entire remaining unpaid balance of this loan, without giving anyone further notices. If Borrower has not paid the full amount of the loan when the final payment is due, the Lender will charge Borrower interest on the unpaid balance at ______ percent (%) per year.

Acceptance of the loan agreement:

Both the borrower and the lender hereby agree to all the terms and conditions that have been stated in the above contract.

Signed by the Lender:

_________________

Signed by the borrower:

____________________ [signed by both the parties]

Signature of the witness:

__________________ [sign of the eyewitness]