The loan is a contract, i.e. a declaration of intent by parties to the contract . It is a bilateral agreement between the bank and the borrower. When entering into a loan agreement, the bank gives the borrower a certain amount of money.
The loan agreement, in addition to the amount to be credited, also specifies the loan period and the purpose for which the funds available to the borrower will be spent. By entering into a loan agreement, the borrower undertakes to use the cash in accordance with the purpose specified in the agreement.
In addition, the borrower by signing the contract also agrees to repay the loan within the deadlines specified in the contract, together with interest and to cover all costs of the loan.
Component loan agreements
The loan agreement has a written form. This means that it should be made in writing and is recognized as binding and binding upon the parties when it is signed.
The loan agreement should specify in particular:
parties to the loan agreement,
– loan amount,
– loan currency,
– the purpose for which the funds from the loan will be spent,
– credit rules and installment repayment terms,
– loan interest rate,
– what is the loan collateral,
– control rights of the bank,
– time and form of transferring credited money,
– additional costs of the loan and their amount,
– the conditions under which you can change or terminate the loan agreement .
What documents do we need?
We will definitely need:
– one or two documents with a photo confirming our identity,
– a certificate from the workplace about our earnings, respectively a certificate of non-arrears with the payment of social security contributions and taxes (in the case of persons conducting non-agricultural activities),
– a statement from our personal account, if we have a bank account where we apply for a loan, the bank will have access to our account,
these are basic documents. If you are applying for a consolidation loan, the bank will certainly require the presentation of such documents as:
– documents confirming earlier commitments that we want to consolidate,
– history of repayment of previous liabilities together with the bank account numbers to which we pay individual installments.