WHAT IS A LOAN AGREEMENT?
It is an agreement between a borrower and a lender which regulate the mutual promises made by each of the parties. Prior to entering into a loan agreement, the borrower makes some representation regarding his creditworthiness and then only the lender by acting on these representations lends the money.
Benefits:-
- Transparency
- Risk Reduction
- Efficiency
FAQ
It is an agreement between a borrower and a lender which regulate the mutual promises made by each of the parties.
The Borrower is the person or corporation that receives value (money, property or some service) from the Lender on the condition that the Borrower will pay the principal amount plus any interest to the Lender at some time in the future.
The Lender is the person or corporation that gives something of value (money, property or some service) to the Borrower on condition that the Lender will be paid a certain amount in the future.
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