An easily editable personal loan contract template is added here on the page and it is totally free to download. Personal loan is a famous type of loans that usually granted by banks and other financial organization for personal, family or household use. For example, if you want fulfill a personal need just like repairing of house or buying a computer for home and there are insufficient financial resources to do so, then you can apply for a personal loan for this purpose. Such loans are typically general purpose loans that you can use at your prudence. Personal loans are sometimes most difficult to get due to strict requirements or qualifications regulated by the bank or financial organization. Personal loan is a smaller loan than a mortgage and usually granted for shorter terms. If it is finally decided by you to borrow money as personal loan from bank, don’t forget to prepare and sing a personal loan contract in order to document the transaction in writing.
Details about Personal Loan Contract:
Personal loan contract is a contract entered into between a borrower and lender outlining all the terms and conditions of personal loan along with payment method etc. Loaning or borrowing money can be a big decision for everyone involved in the transaction but signing a personal loan contract is a recommended and best way to protect rights of both parties involved in the transaction. A detailed and carefully prepared personal loan contract can prevent misunderstandings and disagreements by clearly outlining the terms of the loan and repayment for both parties. In fact a personal loan contract provides answers of all questions to be raised by parties just like specified sum of money as loan, duration of the loan, number of payment installments, repayment process and other conditions etc. A personal loan contract must be written together, so each party of the contract can have a say in formulating the terms and conditions of the loan. A contract written with a mutual consent also helps to make sure neither party feels taken advantage of so carefully read the contract and understand wholly that what is included in the contract because it is matter of the money.
Whether you are loaning out the money or borrowing it for personal use, it is always advisable for you to put the transaction into writing in shape of personal loan contract. Using a personal loan contract can protect you as a lender because it legally enforces the borrower’s assurance to repay the loan in regular payments or a lump sum as mentioned in the contract. Not only for lenders, but signing the contract is also beneficial for borrowers because as per mentioned terms the lender cannot maximize the interest rate. Most of banks and other financial organizations usually use standard formats to make up personal loan contracts. It can also be prepared personally using a personal loan contract template. Utilization of personal loan contract is a best way to draft a personal loan contract because it provides a proper format and guidance to do so.
Download Personal Loan Contract: