Long Term Loan Contract

By | February 24, 2015

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This contract is between a borrower and a lender of a loan, for a loan that is borrowed on a long term basis.

Reason for Loan :___________________________________________________

Dates of the loan:_______________________________________________________

The Borrower­­­­­­­­­­­­­­

Name__________________________________________________

Phone__________________________        Email ___________________________

Address__________________________________________________________

The lender

Name________________________________________________________

Phone____________________________            Email_______________________

Address__________________________________________________________

Costs

The borrower is responsible for all costs relating to this loan, including, but not limited to conservation, framing, packing, transport, installation and security.

Notice

The loan process will take ………. months, years. Only in exceptional circumstances will a request be considered in a shorter period.

Length of loan

Long-term loans are for 3-5 years (to be agreed) and can be extended at the end of the loan period if both parties agree.

Terms and Conditions:

The loan has been provided by the ………….. bank to the individual on the grounds that the entire loan amount of $ ……. The loan has been subject to the following terms and conditions.

  • This loan may be cancelled by either party provided one month’s notice is given and received.
  • In the event of any dispute, a system of arbitration is preferred.
  • A guarantor has been appointed for the loan, ………………… (name of the gurantor) who would be responsible for the loan repayment in the absence of the borrower or in case of failure to pay the amount.
  • The rate of interest will be ……. % per annum.
  • The terms and conditions of the loan will be binding on both the parties and will have to be strictly followed. Any violation or breach of the clauses of the deal will be a punishable offence.

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.

Governing Law:

The contract is in accordance with the governing laws of the  …….. (country, state and province).

The Borrower and the Lender agree to the terms and conditions that are mentioned in this contract.

Signature of the Borrower with date:…………………………

Signature of the Lender with date:……………………………