When it comes to lend or borrow money a legal document is prepared and signed by both parties and it is known as loan agreement form. Basically it creates a legally binding contract between two parties where one is agree to lend his money to another for a specified period of time under some particular terms and conditions and other party agrees to repay the money along with interest amount within mentioned timeframe. Purpose of the loan agreement form is to record the transaction in writing to protect rights and obligations of both parties.
In different situations of life, we all need financial assistance to carry out business operations or to meet with personal financial needs and borrowing money from bank or financial institute is the best option to deal with the situation. Getting loan from bank or financial institute can work well for you if there is a properly filled loan agreement at place because it points out all required details and information about the loan transaction such as names of parties, legal identities, contact details, specified sum of money as loan, interest rate, duration of loan and repayment schedule etc. Sample loan agreement form templates are available here for free.
Loan agreements are used to lend money for different purposes. Using a valid loan agreement protects you as a money lender because it is legally enforceable by law if any party is not following the terms mentioned in the agreement. It is a useful legal document which is used to spell out the details of the loan transaction to prevent misunderstandings in future. As a money lender, you can use an editable loan agreement form template to create and print free forms for loan agreements. Banks are also using such forms to collect details about the loan takers to ensure the loan repayment.
Aside from the nature of loan (personal or professional), you must prepare and sign a loan agreement form to have loan details and all terms & conditions in written. It is beneficial for both lender and borrower. Microsoft word program is the best option for you if you want to make a loan agreement yourself but if there is lack of word skills and expertise then try to get benefits from loan agreement form templates accessible below the article. You can easily fill out blank fields of a selected form to document a loan transaction legally.