Are you taking out a loan for the first time? Be sure to see what the loan agreement should contain. http://jacahuesca.com has examples
Before making a decision about incurring an obligation, you should familiarize yourself with the formal part, which is the basis for cooperation with the person or company granting us the loan. The information and conditions contained in the loan agreement should be fully understood and legible to us before signing. It is worth spending the right amount of time to consciously familiarize yourself with the content of the contract so that detailed records are not a surprise in the future.
Money loan agreement
Pursuant to the provisions of the Civil Code, a loan is an act in which one party undertakes to transfer to the borrower’s possession a certain amount of money or marked as to the type of thing. As part of this relationship, the host is obliged to return the same amount of funds or items of the same species and in the same amount. It is true that the loan agreement does not have to be in writing, but for the purposes of evidence it is advisable to draw it up in this form. The loan may be granted free of charge or with the condition of remuneration for the use of borrowed money (interest). In accordance with formal requirements, the loan contract template should include such elements as:
- Date and place of conclusion of the given loan agreement,
- Defining the parties to the contract – determining the granting and accepting loans. For natural persons, it is necessary to provide personal data and the registration number of the selected document confirming identity. If the loan agreement includes a legal person, enter its registered address and registration data (KRS, NIP) in the document,
- Subject of the contract – in the case of financial resources it is necessary to specify the exact amount that is the subject of the loan,
- Return conditions – specification of parameters such as interest amount, number of installments, loan currency, early repayment option,
- Declaration on the financial standing of the borrower,
- Conditions for terminating the contract – determining whether this right applies to both parties, what is the period of notice that the loan contract provides for,
- Website signatures.
Due to these minimum requirements, many document templates available on the Internet on the basis of which a loan agreement can be concluded are only two-page files. Importantly, the loan agreement can connect both individuals and institutions. Variants of incurring liabilities are available, e.g. by a natural person from a natural person, by a natural person from an enterprise, from an enterprise through an enterprise, and even through an enterprise from an individual. The money loan agreement does not specify the purpose of the funds obtained by signing it.
The loan as one of the forms of consumer credit
In order to provide more protection for consumers operating on the credit market and to reduce discrepancies between the data resources held by the client and credit institutions, a law on consumer credit was introduced in Poland. The development of the product offer and active marketing policy of companies operating on this market did not escape the attention of European and national legislators.
Under the said Act, a number of obligations were imposed on lenders and credit intermediaries aimed at increasing the awareness, and hence the level of protection, of every consumer operating on the loan and credit services market. Pursuant to the aforementioned Act, a loan agreement may be one of the forms of consumer credit (provided that it is not for an amount higher than $ 255,500) and the purpose of contracting the obligation cannot be related to conducting business activity. Unless separate provisions provide otherwise, the contract should be concluded in writing. Consumer credit is a contract to which the parties are the consumer and the entrepreneur in the form of a bank or other financial institution.
Loan agreement – requirements imposed under the Consumer Credit Act
The Consumer Credit Act does not apply, inter alia, to:
- Agreements where the consumer does not pay interest and other costs related to the granting or repayment of a consumer loan,
- Lease contracts, if the contract does not impose an obligation to transfer ownership to the consumer,
- Agreements concluded with companies conducting brokerage activities.
In addition to the precisely specified information requirements regarding consumer credit advertising, the legislator imposes on the lender or credit intermediary the obligation to provide the customer, prior to concluding the contract, with, among others, the following information:
- Full details of the crediting entity or intermediary,
- Type of loan,
- Duration of the contract,
- loan interest rate (in the case of a variable rate – index or reference rate),
- Total loan amount,
- Loan payment dates and method,
- APRC (actual annual percentage rate) and total amount to be paid by the consumer,
- Loan repayment rules and dates,
- Information on the obligation to conclude an additional contract (e.g. insurance contract),
- Information on other costs (such as interest, commissions, margins, additional costs),
- Information on any notary fees,
- Information on interest on past due debt,
- Information about the effects of non-payment,
- Information on any consumer credit collateral,
- Information on the consumer’s right to withdraw from the contract,
- Information on the consumer’s right to repay the loan ahead of schedule.
As we can see, the protective umbrella that the legislature has over the consumer is really wide. However, this should not result in the resignation of consumers and borrowers from a thorough analysis of the provisions contained in the loan agreement. Foresight and patience will ensure that no loan agreement template will constitute an insurmountable barrier for us.