Private loan contract – For most loans from one individual to another. A private loan is a sum of money borrowed by a person that can be used for any purpose. The borrower is responsible for repaying the lender, plus interest. Interest is the cost of a loan and is calculated annually. Because private loans are more flexible and not tied to a specific purchase or purpose, they are often unsecured. This means that the debt is not related to real assets, unlike a home mortgage is home or auto loans is on the vehicle. If a private loan is to be guaranteed by guarantees, it should be explicitly mentioned in the agreement. The insolvency of a loan is a very real scenario, so it is repaid at a later date than the agreed. To do so, you must decide on the acceptable date of the “late payment” and the resulting fees. In the event of a credit default, you must define the consequences, such as the transfer of the guarantee. B or whatever is agreed upon by mutual agreement. A subsidized loan is for students who go to school, and their right to glory is that there is no interest while the student is in school. An unsubsidized loan is not based on financial needs and can be used for both students and higher education graduates.
Renewal contract (loan) – extends the maturity date of the loan. The interest on a loan is paid by the state from which it originates and it is subject to the usury rates laws of the state. The usury rate varies from each state, so it is important to know the interest rate before the borrower is subject to an interest rate. In this example, our loan comes from the State of New York, which has a maximum usury rate of 16% that we will use. After approval of the agreement, the lender must pay the funds to the borrower. The borrower will be tried in accordance with the agreement signed with all sanctions or judgments against them if the funds are not fully repaid. If the total amount of the loan is of great value, it is a good idea to require the signature and details of a guarantor – someone who can vouch for the borrower and work as a guarantee of repayment, the borrower should not be able to repay. In case the borrower is late in the loan, the borrower is responsible for all fees, including all legal fees.