Unplanned expenses happen to all of us. The need to repair the car, purchase medicines or pay off liabilities urgently are situations that put us in a difficult, troublesome financial situation. When there is a sudden need for cash first, what we think about is taking out a loan. Then banks, non-bank companies and private investors who offer short- and long-term loans come to the rescue.
More and more people are opting for this type of cash loan, which guarantees us a loan without certificates, quick payment, and even the possibility of signing a contract online without leaving home. When we care about time, sometimes we do not even think about the consequences of our actions, we are happy with the positive decision and we automatically sign the contract even without getting acquainted with its content.
It is worth remembering, however, that the loan agreement is an extremely important document, so before you sign the agreement, carefully check the terms on which it is offered.
What should the loan agreement contain?
Non-bank loans have become a popular way of obtaining additional financial resources due to their availability. A lot of people use non-bank loans who, due to a lack of sufficient creditworthiness, cannot get financing at the bank or do not want to use its services due to extensive formal requirements. Below are the elements that should appear in the loan agreement.
- the exact specification of the parties to the contract, ie the name, consumer address and lender details;
- information on the type of loan taken out;
- duration of the loan agreement (loan period);
- total loan amount or number of items issued;
- date and method of paying out the loan;
- loan interest rate;
- the amount of the annual current interest rate;
- the amount of the total amount to be paid by the consumer, determined on the day of conclusion of the contract;
- loan repayment rules and dates;
- information on all additional costs, such as commissions and margins;
- indication of the consequences of non-payment of loan installments or delay in payment of installments or total repayment of the loan;
- information on the need to pay notary fees, if any;
- instructions on how to withdraw from the loan agreement in a timely manner.
Which entries should be noted?
The basis for granting bank loans is the contract signed between the bank and the borrower or borrowers. Even when borrowing cash from a proven company, you should read the documents. Regardless of whether we sign the contract in a bank or in another institution, it is the only document that sets out the most important provisions of both parties regarding the commitment given. Therefore, it provides protection for both the borrower and the lender.
- Read the contract and all attachments carefully;
- Check the APRC value specified in the contract;
- Pay attention to the maximum interest rate on loans and borrowings;
- Remember, loan interest is not the only cost of the loan;
- Check what security the loan company requires;
- Remember that you have the right to withdraw from the contract.
The provisions contained in the loan agreement are very important, so it is worth each time you make a commitment, read it carefully and analyze it calmly. If you have any doubts, please clarify them thoroughly with the financial advisor.