There are instances in which an entity needs a specific sum of money to start a business or to purchase property. In connection with this, entities resort to availing loans from financial institutions like banks and lending firms. The document the entity agrees to is known as a loan agreement.
Loan agreement formats has key features and statements which are different from other agreement formats, such as lease or tenancy agreement formats that involve leasing or renting of spaces or property. The following loan agreement formats presented in different templates is your one-stop shop for sources in loan agreement formats you can utilize.
Commercial Loan Agreement Template
Business Loan Agreement
Business Loan Security
Business Investment Agreement
Private Business Loan
Bank Loan Agreement
Bank Home Loan
Loan Guarantee Agreement
What to Include in a Basic Loan Agreement Format
With the sample loan agreement template presented on this website, the following are elements included in a basic loan agreement format:
- Contracting Parties’ Information – Information under this section pertains to the name and the contact details of the contracting parties, namely, the lender and the borrower.
- Agreement Assumptions and Purposes – This section includes the conditions of the parties in the creation and utilization of the loan agreement. The agreement purposes similar to what is shown on the facility agreement templates are defined relative to the content of the loan agreement.
- Underlying Legal Conditions – When it comes to agreements, there are state laws that serve as the basis in making the terms of the loan agreement that is stipulated under this section.
- Provisions on Payment and Cancellation – Prevalent in any of the money agreement templates, these statements are one of the most important aspects in the execution of the loan agreement.
- Interest Rate and Period – This information is an essential point for the borrower to consider in loan agreements, which involves the interest payments added to the principal ones.
- Obligations of the Borrower – Duties of the borrower in relation to the agreement are to be specified when making the loan agreement format.
- Remedies and Penalties – In the event of the borrower’s failure of payment, this information applies as agreed upon by the contracting parties.
- Formulas on Relevant Calculations – As seen on the format of a loan agreement template in Word, pertinent computations on the total payment amount and the fees relevant to the loan agreement are stipulated.
Car Loan Agreement
Reliance Car Loan
Employee Loan Agreement
Employee Company Loan
Loan Agreement for Employee Equipment
Classification of Loan Agreement Format Templates
Loan agreement comes in different formats as you may have noticed on the loan agreements in PDF format on this website.
- Business Loan Agreement Format – This loan agreement format applies to loans for starting up or expansion of businesses. Other agreement formats under this category include security and investment loans.
- Bank Loan Agreement Format – Financial institutions, such as banks, offer different loan packages intended for home loans or car loans. Loan agreements on banks follow this agreement format as presented on this website.
- Vehicle Loan Agreement Format – Entities that need vehicles, such as motorcycles, vans, or trucks, for personal or business use go through a loan agreement having this type of agreement format with the specific vehicle dealers.
- Employee Loan Agreement Format – Some companies offer loans to their employees with terms and conditions integrated on this type of loan agreement format.
- Property Loan Agreement Format – One form of a legal loan agreement is depicted on this type of agreement format, which involves a loan to purchase or to mortgage property.
- Mortgage Loan Agreement Format – This type of agreement format is one of the most common loans availed by individuals with information on the amortization payment schedule to be complied by the borrower.
- Real Estate Loan Agreement Format – Loan on real estates state assumptions and other pertinent legal information need this type of loan agreement format template.
- Standard Loan Agreement Format – Otherwise known as the basic loan agreement format, a standard loan agreement can be divided into two kinds, as follows:
- Secured Loan Agreement
- Unsecured Loan Agreement
- Term Loan Agreement Format – This type of agreement format contains stipulations that are fixed all throughout the loan agreement period. Examples include short term loan agreements and fixed interest rate loan agreements.
- Personal Loan Agreement Format – This agreement format pertains to the outline used by lending institutions when an individual avails personal loan agreement.
Legal Loan Agreement
Legal Agreement for Property Loan
Agreement for Personal Loan
Mortgage Loan Agreement
How to Write a Loan Agreement
With the use of the sample loan agreements provided on this website as your reference, here are the steps on how to write a loan agreement, as follows:
- Discuss among the parties the essential conditions of the loan agreement. Before drafting the loan agreement, the parties must meet to discuss the terms to be stipulated on the loan agreement including the purpose, the interest rate, and the payment schedules. This stage would entail the parties to negotiate and to compromise in order to meet into an agreement.
- Define the title of the loan agreement. As you have seen on the free loan agreement template samples on this website, the title of the loan agreement is indicated at the start of the document.
- Provide information about the parties and the conception of the agreement. Write the name and the contact information of both the parties together with the indication of who the lender or the borrower is and the date the agreement is entered into.
- Set the loan and payment terms with supporting schedules. State the principal loan amount and the interest rate to be applied on the loan. A payment schedule must be procured on the loan agreement that will serve as the guide for both the parties.
- Stipulate legal terms and conditions to be applied. Information under this section pertains to the legal side of the loan agreement in relation to a breach and to the underlying law on loan agreements.
Real Estate Loan Agreement
Real Estate Loan Assumption Agreement
Standard Loan Agreement
Secured Loan Agreement
Loan Facility Agreement
Term Loan Agreement
Fixed Interest Term Loan
Vehicle Loan Agreement
Motor Vehicle Loan
Company Vehicle Loan Agreement
Do’s and Don’ts of Business Loan Agreements
It is normal for businesses to resort to business loan agreements particularly for those starting or expanding a business. For a startup business, you should take into consideration the following do’s and don’ts of business loan agreements:
- Don’t apply too much business loan agreements. Limit the number of business loans you apply for in order to avoid having a less credit score on your record. Apply on business loans with criteria you are qualified for.
- Do understand how much the business loan will cost you. Before signing that agreement, it is essential for you to understand how much the cost of the business loan is and weigh the pros and cons.
- Do pay attention to the conditions stipulated on the business loan agreement format. It is vital for startup business owners to take into account and read the conditions of the business loan agreement as depicted on the free agreement template samples.
There are different factors to consider when it comes to loan agreement. A proper format is to be followed n order to take into account every single detail of the loan. Make sure to look into the following loan agreement formats that are available for you to peruse and to download.