In order to ensure repayment of the loan, the lender may require certain forms of guarantee. The most common forms of security found in loan contracts are collateral and the right to pledge. A guarantee (Dutch: borgtocht) means that a person (legal or physical) other than the borrower is obliged to pay the lender some or all of the outstanding loan payments in the event of the borrower`s default under the loan contract. This offers the lender another party to recover the loan amount (and interest and fees) from. A pledge (in Dutch: pandrecht) is a guarantee on certain assets of the borrower (in this case) in favour of the lender, which means that the lender has the right to sell the mortgaged assets in the event of the borrower`s default under the loan agreement. Since the formalities vary depending on the type of assets to be set up, the agreement to implement the deposit that results from the right of pledge is not included in this generator and must be created separately (our lawyers are happy to help them and we hope to have a generator in the near future). We decided to include a model for a simple loan contract in the BEN-Generator benvalor. In this blog, I will highlight some key issues of the loan contract in general and this model in particular. The converted loan is not a topic in this blog, if you want to know more, you can visit our blog post on EPOS. 15. Full agreement:The parties confirm that this contract contains the full terms of their agreement and that no complement or modification of the contract can be effective and effective, unless they are concluded in writing and signed by both parties. A loan contract is an essential document if you need to borrow or borrow money, z.B.
if you are creating a business and need working capital. A loan agreement clearly indicates how and when the loan will be repaid, which ensures that both parties will be protected during the loan process. LOAN DATE AND AMOUNT: Mention the date of the loan and the total amount of the landing. What will be the interest rate? Security and interest are means of communication for the qualification of the loan contract, which means that interest can be set at a lower percentage when a guarantee is agreed. Interest: The borrower is required to pay interest of 12 per cent (%) to pay each year the “interest” to be paid at the same time as the principal amount of the loan at the end of the loan period.