Description

A Loan Agreement defines the terms under which a lender provides funds to a borrower, specifying repayment schedules, interest rates, penalties, and collateral requirements. These agreements can be secured (requiring collateral) or unsecured (based on creditworthiness). Loan agreements typically include clauses covering default conditions, prepayment options, and late payment penalties. They protect both parties by ensuring the lender receives payments and the borrower understands their obligations. These contracts are widely used in personal, business, and real estate financing. Properly structured loan agreements help prevent legal disputes and financial misunderstandings.