What is a loan agreement?
A loan is not the same as a loan, we hope you are already aware of it! What then should you know about the loan agreement? What does a money loan agreement look like? What should you pay attention to if you want to sign a loan agreement? Check what tips we have prepared for you!
Loan agreement: definition
What is a loan agreement? The loan agreement is regulated by the Civil Code (CC).
The Civil Code (CC) defines a loan agreement as an agreement under which the party that is the lender declares that it will transfer to the borrower’s possession a specific amount of money or things marked as to the species. The party that is the borrower, on the other hand, declares to return the same amount or the same amount of items of the same species and the same quality 1.
Moreover, it is worth remembering that the loan can be granted by a private individual and a natural person.
What must the loan agreement contain?
If you are wondering what a loan agreement should look like, you can find many examples on the web that will be a source of helpful information for you. What should the loan agreement contain? Elements that the money loan agreement must specify include, but are not limited to:
- parties to the contract
- sum borrowed
- determining whether the loan will be related to the borrower’s costs to the lender, and if so, with which
- repayment time
Are you wondering if the loan agreement must be in writing? Do you want to know if the loan agreement can be verbal? Remember: if the loan agreement amounts to over PLN 1000, it must be in documentary form. Despite everything, however, it is always worth to write an appropriate contract for security reasons.
Loan agreement: what to watch out for?
Loan agreement: what to look for? If you are going to take out a loan, be well prepared and the loan agreement read from cover to cover and if anything catches your attention or is unclear, consult a specialist. Do not forget that taking any loan or credit is an extremely serious decision that can affect your financial future, so it should be carefully thought out. Don’t make decisions on the spur of the moment! Hurry can be a bad adviser.
Withdrawal from the loan agreement
Can I withdraw from the loan agreement? If it is a payable loan, you can – you have 14 days to do it and you are not obliged to present any reasons for such a decision, as a consumer you have the right to do so. What’s more, you can withdraw from the contract concluded both at the branch and at home or via the Internet. Nevertheless, of course, a better solution would be to analyze the step so important for your financial situation and make a reasonable, balanced decision.
To sum up: taking a loan requires a potential borrower to be properly prepared. First of all, you need to be aware of how serious this commitment is and pay attention to all issues that are related to it, analyzing your decision down to the smallest detail.