What is a loan agreement?

A loan agreement is a contract between a borrower and a lender which regulates the mutual promises made by each party. There are many types of loan agreements, including "facilities agreements," " revolvers ," " term loans ," " working capital loans."

What are the benefits of a loan agreement?

A loan agreement aids a lender by legally enforcing the borrower's promise to repay the loan amount owed to the lender. The agreement allows the lender to seek legal assistance if the borrower fails to repay the loan amount. Borrowers also benefit from loan agreements.

What is a credit agreement?

A credit agreement is a legally binding contract between a borrower and a lender that documents all of the terms of a loan. Credits agreements are created for both individual and business loans. A credit agreement is a legally binding contract documenting the terms of a loan, made between a borrower and a lender.

What are loan terms?

“Loan terms” refers to the terms and conditions involved when borrowing money. This can include the loan’s repayment period, the interest rate and fees associated with the loan, penalty fees borrowers might be charged, and any other special conditions that may apply.