You have the option to apply for guarantees in exchange for your loan. If you want to do this, you need to make sure that you include sections that deal with it. If you need to secure the loan, you need a specific section. The security would be an asset used as a guarantee of repayment. Real estate, vehicles or other valuables are examples of assets that can be used. If you need guarantees, you need to identify all the safeguards necessary to guarantee the agreement. Another section you need is the security agreement. If you don`t need a guarantee, you can omit it from your loan agreement. The consumer can request a copy of the aptitude assessment, either before the conclusion of the credit contract or up to 7 years after the date of the credit contract. If the loan is for a large amount, it is important that you update your last wishes to indicate how you want to manage the current loan after your death.
In the area of interests, insert information for any interest. If you don`t calculate interest, you don`t need to include this section. However, if you are, you must specify when the interest on the loan will be collected and whether the interest will be simple or assembled. Simple interest is calculated on the principal unpaid, while compound interest is calculated on unpaid principal and any unpaid interest. Another aspect of interest you need to have in detail is whether you have a fixed or variable interest rate. A fixed-rate loan means that the interest rate remains the same for the duration of the loan, while a variable rate loan means that the interest rate may vary over time depending on certain factors or events. Loan contracts usually contain information about: In addition, loan documents have an expiration date that varies depending on the lender. That`s why it`s important that you sign them and make them as quickly as possible. Default – If the borrower is late due to default, the interest rate is applied in accordance with the loan agreement set by the lender until the loan is fully repayable. An individual or organization that practices predatory credit by calculating high-yield interest rates (known as a “credit hedge”). Each state has its own limits on interest rates (called “usury rate”) and credit hedges to be illegally calculated higher than the maximum allowed rate, although not all credit sharks practice illegally, but misceptively calculate the highest statutory interest rate. If you`re trying to determine if you need a credit contract, it`s always best to be on the security side and design it.
If it is a significant amount of money that will be refunded to you, as agreed by both parties, it is worth taking the additional steps necessary to ensure that the refund is made. A loan agreement is designed to protect you if in doubt, to establish a loan contract and to ensure that you are protected, no matter what. For construction loans, the loan offer must be signed and repaid as in the case of a purchase or refinancing. The next step is to go through the credit documents sent by the Bank. This evidence allows us to successfully counter any disparity between the conditions agreed during the pre-authorization phase and what is in the loan agreement. If you would like to see a standard letter to a bank requesting credit information, click: Ask for information about a loan. Here is a standard letter that you can use as a guide: Sample letter: Proof request. Keep a copy of the letter you sent. You can request the documents orally, but under the National Credit Act, time is given to the lender to provide information, upon written request from the debtor. Banks can be unreliable and sometimes lose your documents.