For commercial banks and large financial firms, “loan contracts” are generally not classified, although “loan portfolios” are often subdivided into “personal” and “commercial” loans, while the “commercial” category is then subdivided into “industrial” and “commercial real estate” loans. “Industrial” loans are those that depend on the cash flow and solvency of the company and the widgets or services it sells. Commercial home loans are those that pay off loans, but this depends on the rental income paid by tenants who lease land, usually for long periods of time. There are more detailed rankings of credit portfolios, but these are always variations around the big topics. For private loans, it may be even more important to use a loan contract. For the IRS, money exchanged between family members may look like either gifts or credits for tax purposes. In the event of a subsequent disagreement, a simple agreement will serve as evidence to a neutral third party, such as a judge, who can help enforce the treaty. The types of loan contracts vary considerably from sector to sector, from country to country, but characteristically a professionally developed commercial loan contract includes the following terms: credit guarantee – if someone does not have enough credit to borrow money, this form also allows someone else to be liable if the debt is not paid. A loan agreement is a written agreement between a lender and a borrower. The borrower promises to repay the loan according to a repayment plan (regular or lump sum payments). As a lender, this document is very useful because it legally requires the borrower to repay the loan. This loan agreement can be used for commercial, private, real estate and student loans.

Loan contracts are generally written, but there is no legal reason why a loan contract should not be a purely oral contract (although oral agreements are more difficult to enforce). Interest (Usury) – The costs of borrowing money. Acceleration – A clause in a loan agreement that protects the lender by requiring the borrower to repay the loan immediately (both principal and accrued interest) if certain conditions occur. No one ever thinks that the credit contract they have will be violated, but if you want to make sure that you can deal with the issue if the terms are not met, you have to have something to deal with.