Guidelines for Employing Loan Agreement Templates

• 1. Define Loan Terms Clearly Ensure the loan amount, repayment schedule, interest rates, and total repayment amounts are clearly specified to prevent future misunderstandings. Clear terms protect both the lender and the borrower.
• 2. Specify Default Penalties Clearly outline the penalties for late payments or non-repayment. This includes financial penalties, collateral seizure, or legal actions, providing clarity on the consequences of defaulting on the loan.
• 3. Identify Governing Law Specify which state or country’s laws will apply to the agreement. This is essential if the parties are in different jurisdictions, as it determines how disputes will be resolved.