Loan Agreement

A loan agreement is a formal contract between a lender and a borrower outlining the terms of a loan. It specifies the amount borrowed, the interest rate, repayment schedule, and any fees or penalties for late payments. This document serves to protect both parties by clearly defining their rights and obligations. The lender has the assurance of getting their money back as per the agreed terms, while the borrower understands what is expected to fulfill their loan responsibilities. Overall, it is a key document in financial transactions involving borrowed money.