Step By Step Guide To File For Loan Agreement In Australia
February 5, 2021
To begin with, a loan agreement is an imperative document for both the debtor and the creditor. Especially, when it’s a country like Australia, drafting loan agreement is considered indispensable. If you are the lender then the best Civil Lawyer can help you. This is because, the lender is responsible for creating the loan agreement in an effective manner.
A loan agreement again should be in both the parties’ best interests. Today’s guide will familiarize you about how to file loan agreements and their various associated aspects.
Reasons For Which You Need A Loan Agreement!
Loan agreement is a crucial document, hence, you should draft it only if it’s necessary. Say for instance, if you are providing services to any person without charging any money. On the flip side, you might feel the need to lend a person a certain amount of money.
So, one should not lend money, any services or goods without drafting a substantial loan agreement. A few of the prominent reasons for which you might need a loan agreement can be considered below.
- A loan agreement ascertains the liabilities of the borrower to the lender to repay the money
- A comprehensive loan agreement is comprised of essential terms and clauses. These terms and clauses specify the important details about the amount of loan given and how it must be repaid.
- A loan agreement is important to protect the best interests of both the parties. A loan agreement is more than just having a set of compelling terms and clauses. It is like a proof which evinces the fact that services, money or goods are not mere gifts. Hence, the borrower will have to repay the same within the stipulated time-frame
- A loan agreement also compels both the borrower and the lender to abide by its pertinent clauses and terms. As a result, both the parties do get the scope to disclaim their individual terms and conditions. When that happens both you and your borrower can avoid getting entangled into any sort of resentful relationships.
- Many people lend astronomical sums of money to their pertinent borrowers. So, as the lender, you definitely want that money to get repaid to you right on time. Hence, it’s always a feasible option to be on the safer side by drafting a comprehensive loan agreement beforehand.
Do you also need to draft a loan agreement in Australia?
If yes, then contact the loan agreement lawyers in Perth as soon as possible. Regardless of the type of loan, these lawyers will include the most worthwhile terms and clauses in your loan agreement. As a result, your loan agreement will become out-and-out substantial leading to the successful completion of your loan payment and repayment.
Specific Details Of A Loan Agreement!
While drafting a loan agreement, make sure you include some specific bits of information like the ones mentioned below.
- The acceptable form of payment
- The mode of loan repayment. Say for instance, whether via a lump sum, due on demand or monthly payments.
- The exact method of payment. Say for instance, credit card, cash, debit card, wire transfer or money order etc.
- Information related to any interest whether compound or single
- Information related to any sort of prepayment. This piece of information applies in case the borrower wishes to clear the debts early.
- Details of a variable or fixed rate of interest should also be included
Remember, the clause of prepayment is not indispensable and you might or might not include it.
A Loan Agreement: Its Fundamental Pieces Of Information!
Every loan agreement in Australia irrespective of its type must contain some crucial pieces of information indispensably. The chief objective to include these details is to address the pertinent parties of the loan agreement properly. Some of the basic details you need to include in your loan agreement can be considered below.
- The location and date of the loan agreement when the document will be signed. Say for instance, the condition in which some legal proceedings are worth considering and so on. It also includes details like the date from which the loan agreement will become effective. Last but not the least the place where the loan agreement is drafted etc.
- If you have bits of information about any guarantor, you need to include that too. Make sure you include the right pieces of information related to every of your guarantors. As the lender, you can include multiple guarantors too. This person is liable to pay back the loan in case the borrower abruptly defaults. You must include the complete address and name of every of your borrowers without a failure. This is not imperative while you are drafting your loan agreement in case you do not have any guarantor.
- Details about the lender must be included in the loan agreement as well. It can be an individual or business who will provide the money, services or goods to the borrower.
- A section must be included giving off the basic details about the borrower and the lender as well. In case, the borrower is a business or individual, then, you need to provide detailed pieces of information about that too. If former is the case, then, mention the name of company, for example an ‘Inc.’ or ‘LLC. If there are multiple borrowers, don’t miss out on including them too. Besides, you also need to include the complete address pertaining to each of them.
Hire one of the finest debt recovery lawyers and draft a loan agreement which is in both the parties’ best interest. Make sure you include additional sections to address other notable aspects of your loan agreement only if necessary.
Additionally, you might include some extra details like a collateral against your pertinent loan as well. Say for instance, valuable items like vehicles and real estate assets etc.
Hire The Top Loan Agreement Lawyer In Perth!
After all these steps are over, you need to hire one of the top Loan agreement lawyers in Perth! These lawyers will draft your loan agreement by optimizing their legal notion in the finest possible manner.