What is a loan? | Credit agreement in a few words Loans

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A loan is a bilateral agreement. On one side there is a bank, on the other a borrower. The loan agreement is considered concluded after it has been signed. The agreement imposes certain obligations on both parties. By entering into a loan agreement, the bank undertakes to transfer a specified amount of cash to the borrower. The story is on http://smfall.com

What is a loan?

bank

The purpose for which will be spent determines the content of the loan agreement. By concluding a loan agreement, the borrower undertakes to spend the credited money for the purpose set out in the loan agreement.

The borrower is also required to repay the loan installments with interest on time. It is also on his side to cover the additional costs of the loan. In addition, the bank also has a control function.

Loan colloquially

bank

The bank is a seller. as a salesman, he sells his products and it’s no surprise that he wants to make money from it. Thus, when entering into a loan agreement, we buy money for money from the bank. This means that the bank gives us a pool of money in use, and we will have to give the bank a larger amount than we borrowed. If we take a loan from the bank in the amount of 5 thousand. PLN means that we will have to return to the bank not only this amount.

We have borrowed 2,000 loans to hand over PLN, the amount of interest on the loan and additional costs of the loan. It is the person taking the loan from the bank to cover all additional costs associated with the transaction and to pay interest on the loan. It is the bank that is the seller and it is the bank that sets the rules on which it decides to give us cash. We have very high competition on the market. When we are decided to take out a loan, it is worth first checking what offers the banks give us, and then choose the cheapest loan .

The loan agreement in a few words

The loan agreement in a few words

The loan agreement is concluded in writing. Valid from the moment it is signed. Specifies the terms of the loan , which must comply with the contract during the loan period. On the other hand, the loan period is the time from when, for example, the amount of the loan resulting from the contract appears on our account until the date of the last installment repayment. The loan period is also stipulated in the contract. It may be shortened, e.g. in a situation when we make early repayment of receivables.

A loan is a bilateral agreement with effects for both parties. The bank is obliged to provide the borrower with a certain amount of cash. The borrower undertakes to repay the loan installments with interest on time and to cover the additional costs of the loan, such as loan insurance or bank servicing costs. The bank may control the borrower. It can check whether funds from the loan have been spent on the purpose specified in the loan agreement.

The bank may also control whether the borrower repays his liability on time, in accordance with the repayment schedule being part of the contract. In the event of late repayment, the bank has the right under the agreement to charge interest on late repayments. Repayment timeliness may decide to receive further loans. All our loans are our credit history, which is recorded in the Credit Information Bureau. 

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