When it comes to a private loan, if you do not want interest, the same must be mentioned in the credit agreement. If you want an interest rate, you need to mention how they want to pay the interest and whether or not the prepayment of the loan comes with an incentive to the interest rate. A person or business can use a credit agreement to set terms such as an amortization table with interest (if any) or the monthly payment of a loan. The most important aspect of a loan is that it can be adjusted to its liking by being very detailed or just a simple note. In any case, each credit agreement must be signed in writing by both parties. Borrower – The person or company that receives money from the lender, who then has to repay the money under the terms of the loan agreement. I, Andrew Jones, borrowed $2500 from Ben Bradley on April 2, 2019. I will repay the loan in a lump sum if I receive my income tax refund This loan agreement will be concluded on February 12, 2014 between: – In simple terms, to consolidate, it is to take out a considerable loan to repay many other loans by paying only one payment per month. This is a good idea if you can find a low interest rate and want simplicity in your life. The letter must clearly state „credit agreement“ so that it can have legal significance. The use of this formal term would also make the agreement serious.
The borrower will also understand the seriousness of the agreement and will endeavor to comply with it. Finally, ask your friend to sign the agreement and give them a copy. The signature must be certified before a notary. You can also design the agreement by specifying your full name and residential address as in this example.