Anyone who has taken out a loan must repay the amount received in the same amount. All conditions regarding the loan are defined in a contract. There are no exact rules on how such a loan agreement should look like, but the contract should include some important things.
The content of the loan agreement
A credit agreement should include the personal details of the borrower and the lender as well as the sum, the tariff variant, the amount of the interest and the repayment installment.
The borrower’s details include: date of birth, birth name, nationality, current address, occupation and position and duration of employment, and marital status and number of children.
The data describing the credit should include the following information:
- The loan number
- The loan amount
- The interest rate in the target
- The payout price
- The payability of each installment
- The installment amount and the number of installments, which also results in the term of the repayment
In addition to the processing fees, the APR and the type of credit, any additional costs should be recorded. These include expert fees and a commission.
Also, one should record further costs, without taking into account the annual percentage rate.
- Premiums for a risk life insurance
- The sum of the cost of certain collateral
- The annual costs of these securities
Also important information in a loan agreement is credit terms.
- On the one hand the costs, on the other hand however also the provision commission.
- The payout
- The interest
- The interest that arises during the contract period
- The current amortization
- The existing collateral
- A disclosure of the current economic circumstances -Any extraordinary right of termination
- The lien
- An exemption from the existing banking secrecy.
An annual special repayment right may also be included. This includes an agreement on a special repayment right. Often this is a percentage and a minimum special repayment, which is set at a very specific annual date.
Very important for the loan agreement are also: the debit and collection authorization.
This should be a direct debit for the interest incurred and the repayment issued during the phase of the payout.
Important, especially for the lender are details of the collateral provided. These may include, for example, the assignment of claims for life or annuity insurance. Bauspar contracts, savings plans and investment savings plans can also be included. Possibly a lien on existing securities and other collateral.
The loan agreement should also contain a credit bureau clause.
This allows the lender to submit the data of the loan agreement. Likewise the admission and also the repayment. Likewise, data may also be transmitted in the event of non-contractual behavior.
In addition, the payment conditions should also be recorded.
- Evidence of the collateral
- Proof of the mortgage lender
- Proof of funding
- Evidence of the current, personal situation.
One of the standard terms is that the lender may assign the claims of the loan agreement and the collateral provided to third parties without the consent of the borrower. Alternatively, a fand brief clause can be set here.
Also, in a loan agreement should be noted on the right of withdrawal that each borrower has.
- The right of withdrawal
- The form of how the revocation has to take place
- The deadline
- The consequences of the cancellation.
Who concludes a loan agreement, should always make sure that all important points are recorded in this contract, only in this way can it be prevented that in retrospect still problems or ambiguities.