Loan means borrowing things from other person which had to be returned after certain period of time with some interest. Loan agreement Form is a legal document with some clauses to be followed by both borrower and lender. The various types of loans available in market these days are House loans, Education loans, Car loans etc. Signed Loan Agreement Form is then handed over to both the parties so that they can have some proof of the loan and is kept as a record. This form can later be used by any party against the other party if there is some dissatisfaction.
The clauses in Loan Agreement Form vary from one sector to another and are also different for different countries. The form contains all the information about both the parties like Name, Addresses, Terms and Conditions, Reason of Loan, EMI, Time period of loan, Interest rate etc. Taking loans from bank can be a safe option as it is registered body with predefined clauses thus risk factor is very less as compare to asking loan from a private body. Loans are very beneficial for common man because it help the people in need of money. When a person takes loan, he has to return that money plus the interest amount which is calculated based on the interest rate and the time period for which the loan is taken. People generally apply for loans when they genuinely and desperately need money as the amount they are returning is quite more than the amount they have borrowed.