What is Personal Loan Agreement?

What is a personal loan agreement? The personal loan agreement is a document drafted between the borrower and the lender. This document outlines the terms of the loan i.e. the amount, the interest rate, the monthly repayment option, etc.



The document will help both parties to understand each others needs and constraints. It also helps to keep any misunderstandings between the two parties clear. It helps you decide whether you want to take the loan or not. It will also help you decide how much money you can afford to borrow. It is generally drafted with the help of a lawyer who knows all the clauses that are applicable in a deal.

You can hire a lawyer for the purpose but it is always better to do things yourself. All you have to do is to go through the document carefully and make sure you understand everything. Once you are satisfied with your work, you can sign on the dotted line. If you make a mistake in the document, the lender may file a complaint against you stating that you have not read it properly and have not understood it. the core of a deal. If you draft it very carefully and clearly, then you can be rest assured that you will get everything in order. And if there are any discrepancies in between the terms and conditions, the lender will definitely honor his obligations.