A loan agreement is a legally enforceable document, written and signed between the lender and the borrower. It clearly defines the terms of the loan agreed upon between the two parties involved. In case any one party fails to keep up to its promise to the other, the loan agreement can be produced in a court of law, and justice sought. Considering the legalities involved in the process, which can be both complex and time-consuming, Legitt provides access to a fully customizable free loan agreement template.
These free contract templates outlines the key elements of the loan and can be personalized by either the lender or the borrower, as per their specific needs. The written template, which can very well be considered a legal document, is then signed by both parties and retained for future reference.
When entering into a personal loan agreement with another person, it helps to have a lending agreement template in place. This helps formalize the arrangement between the two parties and maintain respect for the legal aspect involved. Such a template must have the following provisions:
● The amount of loan
● The rate of interest payable on the loan amount
● The default terms of the agreement
● The State Law of Governance (as may be applicable)
● The date on which the loan came into effect
● Complete details of both the borrower and the lender
● The terms of loan repayment
● Penalty for late payment (if any)
● Late fees (if applicable)
In addition to the loan agreement, the lender may also draft a security agreement, according to which, he/she is entitled to a security interest in an asset or property assured as collateral to him/her. In case the borrower fails to deliver his/her promise, the creditor or lender would have the complete legal right to the collateral. A security contract template clearly outlines the terms and conditions of a security agreement between these two parties.
Legitt offers its users access to free loan and security agreement templates for different uses. These include the Loan Agreement Template, Rent Agreement for Office Space, Guarantee Agreement, Pledge Agreement, and more. All of these are free and easily customizable as per preference. Reach out to us or schedule a Demo of the Legitt Contract Management Software for more details. You can also explore free contract templates exclusively made for business and professional purposes by Legitt team.