Loan contract template is an agreement sample that shows the loan terms and conditions for securing a loan between business and financial institutions. A well drafted loan contract sample can help both personal and business to secure a loan efficiently.
Loan Contract Outline
Loan contract needs to prepare financial information related to loans. Business often needs to apply for loans for operation or expansion, in order to apply for the loan successfully, they need to prepare all relevant information. The information may include the business credit, the financial reports and assets. These information will help lenders to evaluate your financial status and whether to lend you the loan.
Loan contract needs to have a detail business plan. For a business to apply for loan, it is important to have a detail business plan. The business plan will help the financial institutions to know the amount of loan you need, the use of the loan and your capability to return the loan back. The business plan can be separate or put it together with the business loan proposal package.
Loan Contract Template Design
There is free contract template you can download for reference, however, you may consider designing your sample loan contract template based on your loan needs and types. During the development process, it is key to take into account the loan contract format, loan contract terms and loan contract layout in the loan contract form.
The first key part in the loan contract template is the loan overview. In the section, you may include information such as the loan types, the related parties. The loan party can be a business, a partnership firm, a proprietary firm or individual. For example, The loan agreement is made on the ____ day between Party A ___ and Party B___.
The second key part in the loan contract sample is the loan agreement. In the section, you need to give details of the loan agreement such as the amount of loan, the loan distribution schedule etc. For example, The lender agrees to lend to the Borrower an amount of __ and The amount of the Loan will be drawn by the Borrower specified in the schedule and disbursed subject to the compliance by the Borrower with the terms and conditions provided in this Agreement. The Borrower shall pay interest at ___ .
The last key part in the loan contract example is the collateral and loan prepayment. In the section, you need to give details on the terms and conditions of loan default, loan collateral and prepayment. For example, Borrower has an option of paying the loan amount in full before ___ without incurring extra fees.