{"id":14214,"date":"2019-02-27T17:08:40","date_gmt":"2019-02-27T17:08:40","guid":{"rendered":"http:\/\/chalatilegal.ca\/?page_id=14214"},"modified":"2021-02-17T22:15:08","modified_gmt":"2021-02-17T22:15:08","slug":"loan-agreement","status":"publish","type":"page","link":"https:\/\/chalatilegal.ca\/en\/loan-agreement\/","title":{"rendered":"Loan Agreement"},"content":{"rendered":"

[vc_row full_width=”stretch_row_content_no_spaces”][vc_column][layerslider_vc id=”33″][\/vc_column][\/vc_row][vc_row][vc_column][vc_empty_space height=”50px”][vc_column_text]<\/p>\n

Our full loan agreement service for businesses.<\/span><\/h1>\n

[\/vc_column_text][vc_separator color=”custom” border_width=”4″ el_width=”10″ accent_color=”#45f0df”][vc_empty_space height=”50px”][\/vc_column][\/vc_row][vc_row full_width=”stretch_row_content”][vc_column width=”2\/6″ css=”.vc_custom_1523298315912{padding-right: 100px !important;background-color: #5f4f87 !important;}”][vc_column_text css=”.vc_custom_1551218696377{padding-top: 170px !important;padding-right: 40px !important;}”]<\/p>\n

6<\/span> Elements of a Loan Agreement<\/span>.\u00a0<\/span><\/h1>\n

Why you should protect your next private loan<\/span>[\/vc_column_text][vc_separator color=”custom” align=”align_left” border_width=”4″ el_width=”30″ accent_color=”#45f0df” css=”.vc_custom_1551218706366{padding-bottom: 170px !important;}”][\/vc_column][vc_column width=”4\/6″][vc_row_inner css=”.vc_custom_1523298118777{padding-top: 20px !important;}”][vc_column_inner width=”1\/3″][vc_column_text css_animation=”slideInRight”]<\/p>\n

Loan<\/span><\/h1>\n

\uf103<\/i><\/span><\/p>\n

The loan agreement should clearly indicate the amount of the loan.<\/p>\n

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Term<\/span><\/h1>\n

\uf103<\/i><\/span><\/p>\n

The loan should have a term.<\/p>\n

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Interest<\/span><\/h1>\n

\uf103<\/i><\/span><\/p>\n

The agreement should indicate how much interest the loan will bear. Will it be a fixed rate or a varying rate?<\/p>\n

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Repayment<\/span><\/h1>\n

\uf103<\/i><\/span><\/p>\n

The loan agreement should clearly indicate how the loan will be repaid, on what date of each month and at which place.<\/p>\n

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Prepayment<\/span><\/h1>\n

\uf103<\/i><\/span><\/p>\n

The loan agreement should provide the borrower the option to repay the loan at an earlier date.<\/p>\n

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Default<\/span><\/h1>\n

\uf103<\/i><\/span><\/p>\n

This clause should list all events that will bring the borrower into default. If any of these events are triggered, typically the lender can ask for full payment of the loan within a certain delay.<\/p>\n

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Get a Quote.<\/span><\/h1>\n

[\/vc_column_text][vc_separator color=”custom” border_width=”4″ el_width=”10″ accent_color=”#45f0df” css=”.vc_custom_1523649570154{padding-bottom: 20px !important;}”][\/vc_column][\/vc_row][vc_row][vc_column width=”1\/4″][vc_column_text css=”.vc_custom_1523299862719{background-color: #ffffff !important;}”][\/vc_column_text][\/vc_column][vc_column width=”1\/2″][vc_btn title=”Contact Us” style=”custom” custom_background=”#5f4f87″ custom_text=”#ffffff” shape=”square” align=”center” link=”url:http%3A%2F%2Fchalatilegal.ca%2Fen%2Fcontact-us%2F|||”][\/vc_column][vc_column width=”1\/4″][vc_column_text css=”.vc_custom_1523299862719{background-color: #ffffff !important;}”][\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_empty_space][vc_column_text]<\/p>\n

Who we help.<\/span><\/h1>\n

A handful of some of the industries we’ve worked with<\/p>\n

[\/vc_column_text][vc_separator color=”custom” border_width=”4″ el_width=”10″ accent_color=”#45f0df”][\/vc_column][\/vc_row][vc_row][vc_column][vc_row_inner][vc_column_inner width=”1\/3″][vc_icon type=”linecons” icon_linecons=”vc_li vc_li-shop” color=”custom” background_style=”boxed” background_color=”custom” size=”lg” align=”center” custom_color=”#ffffff” custom_background_color=”#5f4f87″][vc_column_text]<\/p>\n

Retail<\/p>\n

[\/vc_column_text][\/vc_column_inner][vc_column_inner width=”1\/3″][vc_icon type=”linecons” icon_linecons=”vc_li vc_li-t-shirt” color=”custom” background_style=”boxed” background_color=”custom” size=”lg” align=”center” custom_color=”#ffffff” custom_background_color=”#5f4f87″][vc_column_text]<\/p>\n

Fashion & Design<\/p>\n

[\/vc_column_text][\/vc_column_inner][vc_column_inner width=”1\/3″][vc_icon type=”material” color=”custom” background_style=”boxed” background_color=”custom” size=”lg” align=”center” custom_color=”#ffffff” custom_background_color=”#5f4f87″][vc_column_text]<\/p>\n

Food & Beverage<\/p>\n

[\/vc_column_text][\/vc_column_inner][\/vc_row_inner][vc_row_inner][vc_column_inner width=”1\/3″][vc_icon type=”material” icon_material=”vc-material vc-material-phonelink” color=”custom” background_style=”boxed” background_color=”custom” size=”lg” align=”center” custom_color=”#ffffff” custom_background_color=”#5f4f87″][vc_column_text]<\/p>\n

E-commerce<\/p>\n

[\/vc_column_text][\/vc_column_inner][vc_column_inner width=”1\/3″][vc_icon type=”material” icon_material=”vc-material vc-material-money_off” color=”custom” background_style=”boxed” background_color=”custom” size=”lg” align=”center” custom_color=”#ffffff” custom_background_color=”#5f4f87″][vc_column_text]<\/p>\n

Not-for-Profit & Charities<\/p>\n

[\/vc_column_text][\/vc_column_inner][vc_column_inner width=”1\/3″][vc_icon type=”material” icon_material=”vc-material vc-material-account_balance” color=”custom” background_style=”boxed” background_color=”custom” size=”lg” align=”center” custom_color=”#ffffff” custom_background_color=”#5f4f87″][vc_column_text]<\/p>\n

Real Estate<\/p>\n

[\/vc_column_text][\/vc_column_inner][\/vc_row_inner][vc_empty_space][\/vc_column][\/vc_row][vc_row full_width=”stretch_row_content” css=”.vc_custom_1523389709001{background-color: #45f0df !important;}”][vc_column width=”1\/4″][\/vc_column][vc_column width=”1\/2″][vc_column_text css=”.vc_custom_1523649430654{padding-top: 50px !important;}”]<\/p>\n

Ambitious business but small budget?<\/span><\/h1>\n

Discover our resources section. You’ll find videos, guides and contracts to guide you through the legal of your business.<\/span><\/h1>\n

Learn and copy the techniques we use for our clients and use them to protect your business.<\/span><\/h1>\n

[\/vc_column_text][vc_separator color=”custom” border_width=”4″ el_width=”10″ accent_color=”#5f4f87″][vc_btn title=”Learn More” style=”custom” custom_background=”#5f4f87″ custom_text=”#ffffff” shape=”square” align=”center” link=”url:http%3A%2F%2Fchalatilegal.ca%2Fen%2Fknowledge-base%2F|||” css=”.vc_custom_1534865041566{padding-bottom: 50px !important;}”][\/vc_column][vc_column width=”1\/4″][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text css=”.vc_custom_1523302936027{padding-top: 50px !important;}”]<\/p>\n

Frequently Asked Questions.<\/span><\/h1>\n

Find As to your Qs<\/p>\n

[\/vc_column_text][vc_separator color=”custom” border_width=”4″ el_width=”10″ accent_color=”#45f0df” css=”.vc_custom_1523649049598{padding-bottom: 32px !important;}”][\/vc_column][\/vc_row][vc_row full_width=”stretch_row_content” css=”.vc_custom_1523382416223{padding-right: 42px !important;padding-left: 42px !important;}”][vc_column][vc_tta_accordion style=”modern” shape=”square” active_section=”90000000″ collapsible_all=”true”][vc_tta_section title=”What is a loan agreement?” tab_id=”1536353801609-94ea7164-3634″][vc_column_text]A loan agreement is a contract that is concluded between a borrower and a lender. The contract stipulates terms and conditions to which the borrower must abide to in order to receive a loan. The contract will also specify the principal loan amount, the interest rate, amortization period, term, fees, payment terms & the events of defaults.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Who is the borrower?” tab_id=”1523388080539-0744c53f-6328″][vc_column_text]The borrower is the individual or the corporation who is received the loan (money, property or service) from the Lender.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Who is the lender?” tab_id=”1523388152433-2591f92e-10dc”][vc_column_text]The lender is the individual or corporation that is giving the loan (money, property or service) to the borrower.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”What is interest?” tab_id=”1523388080578-6ed954ef-bc4f”][vc_column_text]The interest rate on the loan is the amount that is being charged as a percentage on the principal loan amount from the lender to the borrower for the use of their assets.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Is the interest fixed or varied?” tab_id=”1528908283338-377e8be0-3122″][vc_column_text]The interest on the loan can be fixed or varied. If it is fixed, the the borrower will pay as an example 3% per year on the loan. If it is varied, the interest can go up per month until the loan is fully paid off.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”What are the payment options available?” tab_id=”1537468352840-8b9159e4-1765″][vc_column_text]Typically, the loan will be paid with one of the following options:<\/p>\n

    \n
  1. Periodic Amounts: The Borrower will make certain payments to the lender in periodic set intervals.<\/li>\n
  2. Lump Sum: The Borrower will make one lump sum payment to the lender at the end of the term.<\/li>\n
  3. Interest Only: The Borrower is only paying back the interest. No portion of the payment is paying back the principal loan amount.<\/li>\n
  4. Interest and Principal: The Borrower makes period payments to the Lender that pay off both the principal and the associated interest.<\/li>\n<\/ol>\n

    [\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Should the lender require the borrower to provide security for the loan?” tab_id=”1523388117677-c8dba870-c2af”][vc_column_text]Yes. If the lender does not take any security on the loan, should the borrower default on the loan, the lender will have to take the borrower to court to obtain payment. The judgement will then be enforced against the assets of the Borrower.<\/p>\n

    However, if the lender does take security on the loan, they will be able to seize and sell the security should the borrower default on his loan.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Does the security need to be equal to the loan?” tab_id=”1523388135649-279e82db-67db”][vc_column_text]Not necessarily. If the security is less than the principal amount of the loan, then once the lender sells the security, he can then sue the borrower for the remaining portion of the loan. If the security is more than the principal amount of the loan, any surplus from the sale of the security will be returned to the borrower.[\/vc_column_text][\/vc_tta_section][\/vc_tta_accordion][vc_empty_space][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]<\/p>\n

    Ready to go?<\/span><\/h1>\n

    Request a consultation via the form below<\/p>\n

    [\/vc_column_text][vc_separator color=”custom” border_width=”4″ el_width=”10″ accent_color=”#45f0df”][lab_contact_form name_title=”Name.” email_title=”Email.” message_title=”Message.” show_subject_field=”yes” subject_title=”Phone.” submit_success=”Thank you, message sent!” alert_errors=””][\/vc_column][\/vc_row]<\/p>\n","protected":false},"excerpt":{"rendered":"

    [vc_row full_width=”stretch_row_content_no_spaces”][vc_column][layerslider_vc id=”33″][\/vc_column][\/vc_row][vc_row][vc_column][vc_empty_space height=”50px”][vc_column_text] Our full loan agreement service for businesses. [\/vc_column_text][vc_separator color=”custom” border_width=”4″ el_width=”10″ accent_color=”#45f0df”][vc_empty_space height=”50px”][\/vc_column][\/vc_row][vc_row full_width=”stretch_row_content”][vc_column width=”2\/6″ css=”.vc_custom_1523298315912{padding-right: 100px !important;background-color: #5f4f87 !important;}”][vc_column_text css=”.vc_custom_1551218696377{padding-top: 170px !important;padding-right: 40px !important;}”] 6 Elements of a Loan Agreement.\u00a0 Why you should protect your next private loan[\/vc_column_text][vc_separator color=”custom” align=”align_left” border_width=”4″ el_width=”30″ accent_color=”#45f0df” css=”.vc_custom_1551218706366{padding-bottom: 170px !important;}”][\/vc_column][vc_column width=”4\/6″][vc_row_inner css=”.vc_custom_1523298118777{padding-top: 20px !important;}”][vc_column_inner…<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"class_list":["post-14214","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/chalatilegal.ca\/en\/wp-json\/wp\/v2\/pages\/14214","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/chalatilegal.ca\/en\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/chalatilegal.ca\/en\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/chalatilegal.ca\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/chalatilegal.ca\/en\/wp-json\/wp\/v2\/comments?post=14214"}],"version-history":[{"count":15,"href":"https:\/\/chalatilegal.ca\/en\/wp-json\/wp\/v2\/pages\/14214\/revisions"}],"predecessor-version":[{"id":14406,"href":"https:\/\/chalatilegal.ca\/en\/wp-json\/wp\/v2\/pages\/14214\/revisions\/14406"}],"wp:attachment":[{"href":"https:\/\/chalatilegal.ca\/en\/wp-json\/wp\/v2\/media?parent=14214"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}