☐ There is a guarantor. _______ The borrower and the lender should have an identity card to allow the notary to carry out the necessary official verification when signing the credit. Personal Credit Agreement – For most loans from one individual to another. Once the agreement is approved, the lender should pay the funds to the borrower. The borrower is held in accordance with the signed agreement, with all the penalties or sentences pronounced against him if the funds are not fully repaid. The most important feature of every loan is the amount of money that is borrowed, so the first thing you want to write on your document is the amount that may be in the first line. Follow by typing the name and address of the borrower and then the lender. In this example, the borrower is in New York State and asks to borrow $10,000 from the lender. All the provisions applicable to credit are also something that contains the document. The purpose of the form is to ensure that both the borrower and the lender agree to the terms and provisions. As soon as the borrower, the lender and a witness document the form, it is a legal and binding agreement.
If you want to ensure repayment when lending money, use the personal credit agreement. With the provisions of the document, the rules are clear. After signing, the borrower or lender cannot make any changes to the original agreement. Collateral – A valuable object, such as a home, is used as insurance to protect the lender if the borrower cannot repay the loan. Loan transfer: if the loan reaches a transfer point, the transfer right section is filled in so that it can be transferred to another party….
