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Loans and Lending Forms Document Templates– Download Agreements

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  Loans and Lending
Loan is a type of debt whereby the lender lends his financial assets or money to the borrower for a specific period of time. Just like other debt instrument, loan is an agreement between the lender and the borrower of the money and is valid for a specific period of time. There is always a risk involved in lending money which the lender has to bear if the borrower doesn’t pay back the loan.

As lending of money includes a written agreement, there are various forms involved in the process such as guaranty, loan applications, loan agreements, consents, and others. A Promissory note is the proof of a loan and is written promise to pay a debt by a specific date mentioned in the note.

A loan agreement is a legal contract between the lender and borrower whereby the lender agrees to lend a specific amount of money to the borrower and the borrower agrees to pay back the amount of money with interest by a specified date. If a borrower is unable to pay back the debt, he promises collateral to the lender which can be possessed by the lender. It helps the lender to collect the amount he had given to the borrower.

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