Personal Loan Contract

 

Are you striving hard to come out of your emergency money needs or helping someone to come out of their urgent cash requirements? Are you planning to apply for a personal loan or willing to offer personal loan? Well, whatever your financial stand might be, you should be well aware of the personal loan contract.

 

What is a personal loan contract?

 

A personal loan contract is a written promise to repay the loan at a fixed time or as per the demand of the lender. Personal loan contract or personal loan agreement contains name of the two parties i.e. the lender and borrower, amount obliged, terms for repayment and interest rates. Personal loan contracts are state specific.

 

What should you consider while drafting a personal loan contract?

 

Personal loans contracts are unsecured obligation. You might wonder what it means! If a borrower files bankruptcy in the event of enjoying personal loan, he has to pay the loan amount only after paying all the debts of secured creditors. Since personal loan contracts are unsecured obligation, the lenders offer very limited amount of money (maximum of $ 1500) as personal loans. If you wish to avail larger loans, you can get the assistance from a lawyer for secured, proper documentation.

 

Usury is referred to unlawful higher interest rates. It is very essential to consider usury laws of a state. Violating usury laws is a serious civil offense.  A personal loan contract contains important legal terms such as promisor, promisee, obliger, obligee, mutual consideration etc. Apart from interest rates you can mention any fee that can charge in the event of delayed re-payment.

 

Sources of Personal loan contract forms

 

You can get personal loan contract forms through various sources. Internet is the easy and free resource which offers numerous sample formats for your quick reference. You can even get these agreement forms in office supply stores but make sure whether that form is specific to your jurisdiction.