Money Loan Agreement – Mutual or Model Commodity.

Do you have questions about the cash loan agreement ? Read the text and learn more about this type of document so important for you to take out a loan and need a contract in which the whole question formalized between both the debtor and the creditor is clear.

The loan of money, even if it is carried out in the bank or between another physical person, must be formalized by contract. At the bank there will always be a contract that will leave you aware of what has been requested, from borrowed amount, dates, interest, service, payment time.

The same should occur even among friends who are taking out a loan. The loan agreement is proof signed by both that there was a service done.

How should the loan agreement be?

How should the loan agreement be?

Banks already have a ready contract on which the customer will sign. It is recommended that you always read any contract before you sign it. Once signed, you have nothing to say or want to go back. It’s your signature in favor. So the main tip is to never fail to read a contract before signing! 

Normally depending on the negotiation, the contract will also include the signature of witnesses, which in this case ensures that both the debtor and the creditor have signed the document. And depending on the situation, once the contract has been made and signed, it is authenticated and registered at the Registry of Securities and Documents, since only with the public registry will the contract become valid for people outside the loan relationship. Registration at the registry office is not mandatory, but it is recommended.

Loan types and modalities

Loan types and modalities

It is valid to clarify that there are two types of loans: the Mutual and the Commodity. According to art. 579 of the Civil Code, “lending is the free loan of non-fungible things. It is made with the tradition of the object. ” Mutuality is the loan of fungible things. The borrower is required to repay to the lender what he has received in something of the same kind, quality and quantity.

Caring for the loan agreement

Caring for the loan agreement

For the reality of many people, resorting to a loan is the salvation to pay off debt among other things. And whenever a loan is signed, the client signs the contract. But in the rush of wanting to get the money as soon as possible, many people end up not reading the contract carefully.

Not to say that the bank will try to harm the customer, no! But it should be read so the customer has in mind everything that will be charged, in what form, payment date, interest charging, time to pay.

That is why it is so important to understand what the terms of the contract are. Even if this is over, be sure to take a few minutes to read it carefully. In many cases, the contract itself has burdens, which the customer signs and does not even know what to pay.

That is, the entire contract generates legal effects regarding obligations and duties between contractor and contractor for their correct compliance, so it is so important to be aware of the conditions presented.

Model loan agreement?

Model loan agreement?

The contract may contain a promissory note and also the statement that you authorize the bank any type of service. So be cautious before signing. So, regardless of the type of contract, check, and confirm the value of the installments that will be paid and the interest rate on the loan agreement.

If you are in doubt about any clause, be sure to ask the manager what that means. And of course, if there is breach of contract this can pose legal and court issues. And besides bureaucracy, depending on non-compliance with the contract, you can pay fines, and even depending on the case, stop in jail. Of course this is not cool! See this model as an example.

So, before signing a contract read carefully, clear your doubts and do not sign if you notice that something is not according to your agreement. You have time to manifest. It is better to lose a few days by having the contract changed than to later lose more time, money, and more, apart from the hassle a cash loan contract can generate.

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