A loan agreement is a legal contract between a borrower and a lender that outlines the terms and conditions of a loan. It specifies the amount of money borrowed, the interest rate, the repayment schedule, any collateral required, and other relevant terms such as fees, penalties for late payment, and conditions for default.
Loan agreements are used in various contexts, including personal loans, business loans, mortgages, and other types of financing arrangements. They are essential documents that provide clarity and protection for both parties involved in the lending transaction.