Loan Agreements

A loan agreement is a legal document outlining the terms under which money is borrowed. It specifies the amount borrowed, the interest rate, repayment schedule, and any fees. The agreement protects both the lender and borrower by detailing responsibilities and consequences for missed payments. Essentially, it formalizes the loan, ensuring both parties understand their commitments. It's vital to read and understand this document before signing, as it forms the basis of the financial relationship and dictates how and when the borrowed money must be repaid.