Credit. By this point in time, this word is familiar to 95% of Russians. We are talking not only about large sums taken from banks, but also about the purchase of mixers, multicookers and fur coats. And everyone who has ever taken out a loan must have signed a loan agreement - a document in accordance with which the relationship between the lender (bank or other credit institution) and the borrower is further carried out.

What is a loan agreement? In general, a loan agreement regulates the relationship that arises between the lender and the borrower:

• a bank or other credit institution provides a loan on terms of payment and urgency;
• the client who signed the agreement undertakes to repay the full amount of the loan and the interest specified in the agreement within a predetermined time frame.

The agreement may also contain other provisions (for example, insurance of the life and/or property of the borrower), which are also subject to execution. A significant part of banks have already developed their own contract forms based on the provisions of Federal Law No. 353 of December 21, 2013. But there are also general provisions that any bank will necessarily indicate in its agreement:

• The borrower signs the agreement voluntarily. Most lenders include a clause stating that the borrower is not forced to sign by difficult circumstances, illness, need to pay for treatment, etc.;
• The agreement is concluded within the legal framework of the Russian Federation. All disagreements are resolved in accordance with the legislation of the Russian Federation;
• the borrower agrees with all provisions of the agreement and undertakes to comply with them.

Each document can be divided into general and individual parts. The main thing: none of the provisions of the agreement should contradict current legislation. It is worth noting that the loan agreement in most cases does not imply any changes to it by the borrower. A bank or credit institution sets lending conditions, the borrower can only agree or contact another lender.

General terms and conditions of the loan agreement

General terms and conditions mean the part of the agreement developed by a bank or other credit institution. The general conditions are developed for all borrowers and are not changed by the bank under any circumstances. General provisions include:

• name of the bank or other credit organization;
• legal and actual addresses, current accounts, telephone numbers and other details of the company.

The bank's requirements for potential borrowers, the conditions for submitting applications and making decisions by the credit committee do not change either. General provisions also include information about the types of loans provided by a credit institution in a certain period of time. Information such as interest rates on loans, amounts by type of loan, the need to obtain insurance, and other payments that are mandatory for all borrowers do not depend on the individual borrower.

General information also includes options for repaying loans or credits. The borrower has the opportunity to use any of the options set out in the general terms and conditions of the agreement. The bank may stipulate the conditions for refusal of the loan and the time allotted for refusal. If any types of loans require the presence of collateral or a guarantor, then these provisions also apply to general ones.

If you carefully study the Civil Code of the Russian Federation, namely, Article 807, it will become clear that the moment the agreement enters into force is not the fact of signing, but the physical transfer to the borrower of money or its carrier - a bank card.

If the borrower has signed all the contracts and forms, but has not yet been to the cash desk and has not signed the debit order, he has the right to change his mind and demand termination of the contract. If the money is received, then the agreement is considered to have entered into legal force and the borrower will have to repay the loan ahead of schedule and pay interest for the actual time of using the money.

Total cost of loan

A clause of the agreement that is mandatory for all credit institutions is the total cost of the loan, which consists of the following points:

• loan amount;
• interest for using a loan;
• other payments specified in the agreement;
• life insurance/or property insurance of the borrower, etc.

As additional payments that can greatly increase the total cost of the loan for the borrower, you must indicate:

• penalties for late payments;
• payments obligatory for payment not according to the contract, but according to the laws of the Russian Federation.

Termination of the loan agreement

The borrower has only one opportunity to terminate the loan agreement - to fulfill it in full. In this case, the borrower is obliged to notify the bank in advance of his intention to repay the loan early. The bank is obliged to provide the borrower with an estimate of the amount of interest payable in case of early payment. If the borrower wishes to pay early, an additional agreement to the contract is drawn up, which stipulates the terms of payment.

The following reasons for termination of the contract at the initiative of the borrower can be mentioned as exceptions:

• the bank does not transfer funds on the loan;
• a unilateral change in the interest rate by a credit institution, unless this is provided for in the agreement;
• the agreement was signed on behalf of the creditor by a person who does not have the authority to do so.

The creditor is given more opportunities to terminate the contract early:

• if the borrower received a targeted loan, but used the money for other purposes, then the lender has every right to demand early repayment of the money in full;
• if the loan is provided as collateral, but the collateral is lost, damaged due to the fault of the borrower or due to force majeure;
• If the borrower does not pay the loan or violates the provisions of the agreement, then the lender is given the opportunity to terminate the agreement in court.

The terms of the consumer loan agreement are spelled out in the key document regulating the relationship between the parties to the loan transaction, the agreement (consumer loan agreement). The provisions of the agreement are provided for by federal legislation (N353-FZ), which governs the relationship with the creditor.

The loan agreement states that the bank has an obligation to provide a loan in a certain amount for a certain time. In this case, the client is assigned an obligation to reimburse (compensate) the amount taken, as well as interest that was accrued in the process of using the loan.

In addition, the debtor undertakes to fulfill other requirements of the concluded agreement. Based on the type of financial organization, individual types of such documents can be drawn up, but it is important to comply with the principles described in the legislation.

Concept

A consumer loan agreement is a document that sets out in detail the general provisions and specific points. It is allowed to include parameters of other provisions in accordance with the new legislative norms. Key requirements and provisions are established by the lender independently and are intended for repeated use.

The list of aspects must be agreed upon by the parties and used for each borrower separately. In addition, the agreement, which goes through the stages of preliminary approval and review, often contains important information about its subject matter.

Before signing the documentation, please note the following:

• the amount of consumer lending (loan body and interest charges);
• the cost of using borrowed funds (in other words, the rate);
• the period during which repayment occurs;
• optimal requirements for refund;
• the conditions under which penalties come into force;
• the presence of commissions and their value in numbers;
• price for operating the account;
• directions for termination of the agreement.

The construction of the structural features of the contract occurs on the following principles:

• the parties’ entry into the transaction is strictly voluntary;
• presence of a regulatory framework;
• the obligation for some parties to take into account the interests of other parties;
• work related to the coordination of all conventions and positions.

Thus, the demands of all parties must be satisfied. The documentation of such a plan traditionally includes personal conditions. Elements of other positions may be present if this does not pose any contradiction to the norms of the current law.

General conditions of consumer credit

The determination is made within the framework of a unilateral procedure by the creditor. Traditionally, the application occurs repeatedly for different types of documents (contracts, forms, agreements, resolutions, resumes.)

Items should not include information related to payment or describe other obligations of the borrower. The lender retains the obligation to inform the client about all aspects and changes and communicate the following provisions:

• general requirements for the client;
• types of loans;
• range of terms and values;
• currencies that are offered for use in the organization;
• rates and procedures for their gradation;
• dimensional indicators;
• full credit value;
• period of accrual and compensation of interest payments;
• terms of refusal to use services;
• debt recovery methods;
• the fact of the presence of guarantors, collateral registration;
• liability for failure to fulfill obligations;
• information about related agreements;
• warning of likely cost increases;
• data on currency exchange rate fluctuations;
• information about the assignment of claims;
• data on the possibilities of resolving disputes.

Individual lending conditions

Mandatory individual conditions specified in the contractual agreement include:

1. the full amount of the loan provided for use;
2. chances of changing the principles of the contractual agreement;
3. period of continuous operation of contractual agreements;
4. the currency in which transactions and operations are carried out;
5. annual interest rate;
6. information about currency changes, which, by the way, may be subject to fluctuations;
7. the schedule and scheme according to which the debt is repaid;
8. transaction security data.

In addition, the lender must provide the client with a warning that if the total amount of loan payments for the annual period amounts to 50% of annual income, then there is a possibility of non-fulfillment of loan obligations.

As a result, penalties and other additional payments may be assessed. If the bank applies an offer and the client is given only a form with personal conditions, then it must refer to the overall principles. These are the individual conditions for carrying out such events.

Subtleties of the transaction

A transaction related to a consumer loan must be executed in the same way as in the case of a classic contract. To apply, it is enough to make a one-time application to a financial institution to fill out an application. After a positive decision is received, a package of documents is signed and funds are transferred to the card.

Prescription of individual conditions is carried out in the form of a table, which must be compiled in a strictly unified form. At the same time, the financial institution must ensure full compliance with the wishes of the borrowers.

What list of documents will be required?!

In order to ensure smooth, efficient and high-quality work on drawing up the contract, you should use the following set of documentation.

• your own ID;
• certificate of receipt;
• information about the possession of a particular property.

The list may vary. There are certain types and groups of clients to whom a loan will be given with a minimum of paperwork. If the borrower applies for a loan, there is a possibility that you will need to have a work book on hand, and you will also need other papers that confirm the impossibility of paying the loan.

What can be done for free?!

The conditions state that the lion's share of information is provided to the borrower free of charge. If the creditor provides copies of documents containing this information, it is possible to withhold payment. It should be no more than the cost of creating these photocopied papers. In addition, the client has an unconditional right to request calculation of the cost of loans.

In addition, according to legislative innovations, since 2014 (Law No. 353, Article 5. Part 19), banking organizations have no right to charge auxiliary commission payments for the client’s use of credit funds.

Personal details related to obtaining a loan must be agreed on an individual basis in accordance with current legislation. In addition, they are displayed in tabular form, which is approved by law and cannot be subject to change. The creditor does not have the right to take and remove clauses and columns of the contractual agreement.

If any condition is not met or is missing, a special mark is placed opposite this item. According to the law, banks have the opportunity to add individual conditions. They are specified only after a basic set of requirements has been approved. An individual set of design principles is presented in tabular form and is subject to advance agreement between both parties to the transaction:

Loan amount and procedure for changing it

The amount of the monthly payment may be no more than half of the borrower’s income for a certain period of time, but it is important that this parameter be established within the framework of an individual agreement, which consists of:

1. Term, during which the loan must be repaid to the lender, as well as the period of validity of the agreement
   The period and term can be absolutely anything, depending on the individual preferences of the borrower and the lender; again, each point must be discussed separately.
2. Loan repayment. The methods and amounts in which the loan amount is paid are indicated here. For example, this is a personal appearance of the borrower at the lender’s office premises or payment through banking systems and services.
3. Interest rate in annual terms and the subtleties of its calculation. Determined by the bank and depends on other lending criteria. For example, on the total amount of the loan, on the amount available to the borrower, on the term and indicator of current solvency.
4. Determining the exchange rate in case of non-cash transfer of money to a third party based on requirements from the borrower. Rates may be subject to fluctuations, and these aspects must be specified as part of the terms of the contract. It is necessary to stipulate the procedure that will be taken at the slightest hesitation.
5. Frequency of payments, as well as the size and amount of funds deposited. The amount of money that will be deposited each month depends on the size and term of the loan.
6. The order in which changes in mandatory payments occur. If mandatory payments are subject to change during the operation of the agreement, it is necessary to indicate the order in which this occurs
7. Ways. With the help of which the borrowed funds are paid. The borrower's obligation to enter into other agreements if necessary. If there is a need to draw up additional agreements and contracts, certain obligations and rights of the borrower are prescribed in this regard.
8. Liability for failure to fulfill contractual terms, features of calculating fines and penalties. If the terms of the contract are not respected, this is fraught with a high level of liability for both parties. Therefore, this paragraph most often indicates the dimensional parameters of penalties. It is necessary to describe their size and features of recovery, as well as a list of actions for which they are provided. If payment is not possible, please
9. Mark, related to the client’s agreement with the general conditions. Here the client must confirm the fact of his agreement with the general parameters or note the points with which he does not agree. It depends on what the general provisions are and what rules govern them.
10. Other services, which are necessary for the provision of a loan. There are cases when, in order to obtain a loan, it is necessary to obtain other services, for example, registration of compulsory insurance, payment for maintaining an account and its servicing by a financial institution, and so on. This point is also subject to a detailed description in the terms of the contractual agreement, so that no difficulties arise in the future.

Is it possible to refuse a consumer loan if an agreement is signed?!

If the contractual agreement for the provision of a loan has already been signed, it can be abandoned only if the actual disbursement of money has not yet taken place. According to Article 807. Civil Code of the Russian Federation - it is the actual transfer of funds that acts as the moment when the loan agreement comes into force.

With all this, the banking organization is assigned an obligation to satisfy client requirements related to, if the borrower has not yet managed to sign payment documents for the issuance of a loan. If the client has already received a loan, it will be impossible to cancel it. After all, financial obligations have already been taken, and you should act accordingly within the framework of the agreement.

Conclusion

These are the general and individual conditions of a consumer loan, which must be taken into account in the process of concluding contractual relations between the parties and during the use of credit money.

At this time, it is necessary for the borrower to pay attention to such aspects as the interest rate, loan amount, period of provision, conditions and features of the use of funds and their repayment.

Recently, many citizens have used credit loans at least once. And when contacting a bank or any microfinance organization, everyone is faced with the fact that they are offered general lending conditions. By comparing all possible options, borrowers choose those that are more profitable for them. However, many do not know that they can negotiate with credit institutions and ask for individual conditions, taking into account certain circumstances.

A few years ago, amendments were made to the legislation regarding credit relationships.

These amendments also included a division of the conditions provided into:

• are common;
• individual.

All credit organizations that provide loans to citizens are required to distinguish between them, regardless of what organizational form they have.

In addition, the main significant differences between these two types of concepts were introduced. The essence of these differences is as follows:

1. General conditions are provided to everyone unilaterally, and individual conditions are offered only after a meeting with the borrower and discussion of all points of the agreement.
2. General ones are intended for all types of borrowers, and individual ones are set only for a specific client.
3. General terms are subject to the possibility of future changes, but the other party must be notified of this in the proper manner. They can only be changed for the better under a valid contract. Conditions can be changed for the worse when this is expressly provided for in the signed agreement. Those points that were agreed upon individually with the borrower can only be changed through the court, by proving good reasons for their change.

Therefore, when drawing up a loan agreement, the borrower can always try to change the current conditions and replace them with individual ones.

General terms

When talking with a lender about what can be changed in a more favorable direction for the borrower, it is important to understand which conditions, according to the new legislative acts, are general and which are individual clauses.

The general clauses of the contract include:

1. Name of the credit institution and details for transferring monthly payments.
2. Requirements that a banking organization makes when applying for a loan.
3. Types of payments according to which the debt repayment schedule will be calculated. There are two possible calculation options: differentiated or annuity.
4. Responsibility, which is specified in the agreement and applies in the event of a violation by the borrower of the terms of the loan.
5. Possibility of assigning rights to other persons (collectors) in case of non-compliance.

All these conditions can be changed before signing the agreement with the borrower or after signing, but only for the better for the borrower.

Individual conditions

All conditions that were provided directly after negotiations between the borrower and a representative of the credit institution are considered individual. These include the following clauses of the agreement:

1. The currency in which the loan is issued.
2. The amount that is transferred to the borrower by agreement of the parties.
3. The interest rate depending on which the amount of the overpayment is calculated.
4. The period during which the agreement will remain in force and the borrower will be required to make monthly payments.
5. The cost of additional services provided by the bank. This may include a fee for maintaining an account, for providing mobile banking services, and so on.
6. Conversion procedure if payments will be made in a currency different from the one in which the loan was issued.
7. Acceptable options for making payments through certain systems, as well as the deadlines for making them.
8. The procedure for resolving and considering disputes arising in the course of these credit relations.
9. Collateral obligations that the borrower provides as security for a cash loan.
10. Mandatory insurance, voluntary agreement or refusal of additional types of insurance.

Other items may also be included as agreed upon by the parties. Here we can consider certain situations when the borrower will have the opportunity to receive a credit holiday or the possibility of partial or early repayment of undertaken obligations. Individual conditions always take precedence. Therefore, if the contract is drawn up in such a way that there is a contradiction, then the clauses drawn up on an individual basis will prevail.

Contract structure

In the same 2014, when amendments were made, changes were also made to the form of the loan agreement. It must be provided in tabular form. Its structure should be as follows:

1. The first column contains the loan number.
2. The second contains the name of the loan.
3. And in the third column there is explanatory text.

The word “no” must be written if a positive agreement is not reached on a certain point. This word can also be replaced with a dash. But empty cells are not allowed.

In the upper corner, in a separate frame on the right, there is the loan amount and the real rate at which it is provided.

It is prohibited to make statements in the form of separate asterisks from the loan agreement, as well as to write the text in small print. Everything should be contained in the main table and written in the same, easy-to-read font.

Nuances

These amendments also affected the possibility of changing individual and general conditions. The loan agreement cannot be changed until the borrower has received funds, even if the agreement has already been signed. If the funds do not arrive to the specified account, then changes to the terms of the agreement are not permitted.

The borrower also has the right to return the funds within the first month, paying only interest for this period. Additional fees are not allowed. The transaction begins to take effect from the moment the contract was signed by the parties and the money was also transferred to the account.

Individual terms and conditions cannot be changed, but additional clauses may be added to them. Banks often set individual conditions based on the following parameters:

1. The borrower's credit history, which expresses his complete reliability. If a citizen has never had late payments and often used loans, then he is considered reliable.
2. High and stable wages. This parameter is not always long-term, but it indicates that the borrower has a certain income, which will be sufficient to repay the debt on time. In this case, income must be confirmed by official documents. It is desirable that this salary be white and taxes are deducted from it.
3. The presence of collateral that a person can additionally pledge to ensure the reliability of his obligation. Moreover, if this property is considered highly liquid, the bank can significantly change the terms of the loan for the better for the borrower.
4. The presence of co-borrowers and guarantors who are involved to ensure the reliability of the fulfillment of the undertaken obligation. They must also have a high income, confirmed by official documents. Typically, such papers include a 2-NDFL certificate or a tax return.

Basically, all banks do not offer maximum loan conditions. But any borrower can try to negotiate the most favorable terms for him by offering the bank additional guarantees of repaying the borrowed funds on time.

All agreements must be recorded in the agreement. Before signing, you must make sure that bank employees have indicated everything correctly. In the future, it will be difficult to prove that there was a different oral agreement if the funds have already been transferred under the signed agreement.

Article 5 of Federal Law No. 353-FZ of December 21, 2013 “On Consumer Credit” states that all provisions of the loan agreement are divided into two groups: general and individual. General terms are established by the bank unilaterally, and individual terms of a consumer loan are established between the lender and the borrower.

Basic Concepts

In accordance with Article 1 No. 353-FZ, a consumer loan is funds provided by a lender on the basis of a loan agreement. A lender is an organization that specializes in issuing loans. Borrower is an individual who received a loan. Credit limit is the maximum amount of finance provided by the lender to the borrower.

What applies to individual conditions

The lender's personal offer includes:

• loan amount;
• contract time;
• loan currency;
• size and frequency of payments;
• early return procedure;
• the need to enter into other agreements, such as insurance;
• provision of loan security;
• purpose of using borrowed funds;
• methods of fulfilling obligations;
• penalties for violating the terms of the agreement;
• method of information exchange;
• additional services provided for an additional fee;
• prohibition of assignment of the creditor's claims to third parties.

Important to know: In accordance with Bank of Russia Directive No. 3240-U, individual terms of a consumer loan are reflected in the agreement in the form of a table.

A credit institution is obliged to post in publicly accessible places, including the Internet, information about the conditions for the provision, use and repayment of a loan:

• name and address of the bank;
• requirements for the borrower;
• deadline for consideration of the application;
• types of lending;
• currency, amount and loan term;
• method of providing money;
• frequency of payments;
• possible methods of provision;
• jurisdiction of disputes;
• standard forms and forms.

All this information should be provided to the borrower free of charge. At the client's request, the bank must issue copies of documents containing public information.

Insurance services

Most credit institutions offer clients insurance for life, health, or changes in financial situation due to job loss. With such insurance, the beneficiary is the bank. When an insured event occurs, the insurance company will pay off the balance of the debt to the creditor.

If the borrower agrees to purchase an insurance policy, then he must write a written application for the conclusion of an insurance contract.

The client has the right to refuse insurance before signing the loan agreement or within five days from the date of conclusion of the agreement.

Illegal items

Banks strive to obtain maximum profit from each lending agreement. Therefore, they often include provisions that can be challenged in court. They are illegal from the point of view of the civil code. These items include:

• commission for issuing money;
• sanctions for early repayment of debt;
• additional payments for opening and maintaining an account;
• penalty for refusing to receive a loan after signing the agreement.

Information: You can refuse to receive a loan without penalty within 14 days from the date of conclusion of the agreement.

In order not to bring the matter to court, you must read all the clauses before signing the contract. If there is a conflict between the general and individual lending provisions, individual conditions are applied for loan settlements.

Information after the conclusion of the contract

After signing the loan agreement, the lender is required to provide the client with the following information:

• the amount of current debt;
• dates and amounts of all payments;
• other information.

A prerequisite for concluding an agreement must be that the bank provides the opportunity to pay the debt without commission, through branches or ATMs located in the city of residence of the citizen.

Who can receive personal conditions

Depending on the credit policy of a particular financial institution, individual terms of a consumer loan agreement are provided for certain groups of people:

• "salary" clients;
• bona fide borrowers who repaid the loan to this institution;
• employees of a credit institution.

For these clients, lenders offer the most favorable and convenient conditions, since by issuing funds to such borrowers, the bank bears minimal risks.

Change of specific provisions

In some situations, the borrower may contact the bank with an application to change individual conditions. This is permissible in the following cases:

• deterioration of the client's financial situation;
• increase in the borrower's income;
• changes in the economic situation in the country.

To change individual provisions, you must write an application to the bank, in which you must justify the reason for making the adjustments. After reviewing the application, an additional agreement is signed between the lender and the borrower, which sets out new provisions. This change is called debt restructuring. This may change:

• loan terms;
• monthly payment amount;
• interest rate.

Attention: The bank has the right to unilaterally reduce the interest rate, the amount of fines or other terms of the loan agreement, if this does not entail an increase in monetary obligations on the part of the borrower. In this case, the lender is obliged to notify the client of such changes in a proper manner.

The reason for reducing interest on borrowed funds may be a decrease in the refinancing rate by the Central Bank.

In order not to fall into a “debt hole” and not to spoil your credit history, you need to assess your financial capabilities for timely debt repayment before applying for a loan.

Bankers use various tricks to extract maximum profits. Sometimes they formulate the provisions of the contract in incomprehensible language, overloading it with highly specialized terms, or write down some clauses in small print. To fully understand all the proposed conditions, it is better to take the loan agreement home and read it in a calm environment.

To repay the debt early, you must write a notice to the financial institution no later than 30 days before the date of expected payment of the debt.

If the bank has included illegal items, you should ask them to remove them. If the creditor refuses, the validity of such provisions can be challenged in court.

A consumer loan will only be beneficial if the contract is as transparent and understandable as possible. A conscientious borrower can always count on a more loyal attitude from the lender and the provision of individual lending conditions. Before applying for a loan, you must carefully weigh the pros and cons and objectively assess your financial situation.

This article examines the structure and purpose of a consumer loan agreement, describes its content and the nuances of its drafting. The possible ones are also listed here.

Regulatory regulation

A consumer loan agreement is concluded between the institution providing the loan and the individual taking the loan. The loan is provided not for use in promoting one’s own organization, but for household needs.

The agreement describes the obligations that the bank undertakes and. The document is drawn up in accordance with legal norms.

The terms of the contract do not provide any benefits. The document may contain individual conditions that correspond to a given specific case, or the transaction may be concluded on general terms and conditions that do not differ from the standard ones.

Are common

Standard terms and conditions are used in the preparation of a number of standard lending agreements. The general conditions may apply to any bank client who has taken out a consumer loan. The general conditions list:

• Data of the bank or credit institution;
• Bank requirements in relation to the person applying for the loan;
• Nuances of the procedure for approving an individual as a creditor;
• Types of loans provided;
• , which are available for the borrower to choose;
• Calculation options and bet sizes;
• Total cost of loan;
• Terms and methods of making regular payments;
• , types and methods of providing loan security;
• Sanctions applied to the person applying for the loan in case of dishonest fulfillment of the undertaken obligations;
• If necessary, the possibility of additional execution of agreements, additional contracts, etc.;
• Variability of the amount of the repaid debt (for example, a possible increase or decrease in the repaid amount due to changes in exchange rates, etc.);
• Possibility of re-registration of the right to claim debt on a loan;
• The need to inform clients about how to spend borrowed money (if necessary);
• , their duration, possible course and actions of the parties, considered lawful or unlawful in the event of force majeure circumstances;
• Information on resolving possible conflicts (both in court and in court);
• Information about the necessary additional papers required to be provided by the borrower.

General conditions are provided to the borrower or potential borrower free of charge. The bank has no right to demand payment for determining the amount of the proposed loan and familiarizing the potential client with the bank’s terms and conditions.

General conditions do not require agreement with the client; they are drawn up in advance and are available upon request.

Individual

Individual conditions require discussion with a potential client. Individual ones have a form clearly specified in the standards. They are provided in the form of a table in which the bank does not have the right to change columns. You cannot remove columns. It is allowed to add table elements at the end, after filling out the fields specified in the standards. If a field cannot be filled in, the table elements are not removed and a dash is placed in the field.

The table consists of the required columns:

• Serial number
• Condition
• Contents of the condition

Individual conditions include:

• The total amount of the loan received;
• The period after which the amount must be repaid in full, along with the interest rate;
• Loan currency and possible transactions with currency;
• Purposes of issuing a loan;
• Borrower's responsibility;
• Collateral provided by the borrower to obtain a loan;
• Additional options provided by the lender;
• Borrower contact information.

How to compose

The loan agreement is drawn up in two copies, one of which the manager is obliged to hand over to the borrower. The table items relating to individual conditions are completed in collaboration with the client and spoken out loud. It is necessary to ensure that the client understands the essence of the contract elements being discussed.

Sample template of a consumer loan agreement

Interest under the agreement and its execution

In accordance with the loan agreement, the client undertakes to pay not only the loan amount, but also some part of this amount in addition. Interest is paid in two ways:

• The interest amount is added to the loan body, the resulting amount is divided by the number of months during which the client will repay the loan
• First, the loan body is paid, then the interest on the loan.

Delay in regular payments threatens the accrual of penalties (additional interest) and the application of penalties by the bank in relation to the creditor.

Possibility of refusal and termination

Refusal from a signed loan agreement is possible only if the client has not actually accepted the money. Receiving a sum of money in cash or by credit card means that the client assumes the obligations specified in this agreement.

If the funds are not transferred to the borrower, he can terminate the contract. Termination of the agreement without the consent of the creditor (unless the agreement states otherwise) may take place in the event of early repayment of the loan. So, if you pay off the loan within two weeks after registration, the interest amount going to the bank will be minimal. However, it is necessary to notify the organization that issued the loan of your desire to repay the money early.

It is impossible to refuse to fulfill obligations under the contract free of charge in the presence of properly executed papers. If the bank agrees with the client’s intention to terminate the agreement, it is possible to enter into an agreement to terminate the loan agreement, which specifies exactly how the loan repayment procedure will go, the payment terms and the interest that the borrower will be required to pay to the bank.

Termination of a loan agreement is possible if a bank or credit institution violates the rules for granting a loan stipulated in the agreement (the deadlines for providing funds are violated, the terms of the agreement are changed without the client’s knowledge, etc.) If circumstances arise in which repayment of the loan is considered impossible (the borrower loses his ability to work , etc.), the contract may be terminated.

This video explains the rules of the game in a consumer lending agreement: