| Do you plan to open a money lending business? | | | | a witness and an independent party such as a |
| One of the things you need to do before you | | | | lawyer. Aside from the names, the template |
| start is to create a loan contract to protect your | | | | should provide enough space for the date and |
| business from unscrupulous borrowers who fail to | | | | signature of each party into the contract. |
| repay their loans. Here are the things you need to | | | | 3. Financial section |
| look for when choosing a template that you will | | | | This section is composed of the amount of the |
| use in drafting your loan contract. | | | | monthly loan payment, the total amount of the |
| 1. Schedule of loan repayment | | | | loan, the due date for the payments, and the |
| Your loan contract must clearly indicate the due | | | | total amount that the borrower will have repaid |
| date of loan repayment. The template must allot | | | | once the loan has been paid off. The loan |
| space for this information. This will help the | | | | template should provide enough space for the |
| borrower avoid missing his or her loan | | | | monthly interest rate and annual percentage rate |
| repayments and bearing the penalties because of | | | | of the loan. The other financial obligations of the |
| failure to pay. In addition, it should stress to the | | | | borrower should be specified in the loan contract |
| borrowers that any violation of the loan contract | | | | as well. |
| will result in certain sanctions. | | | | 4. Penalties |
| 2. The parties involved in the loan | | | | A section in the template should stipulate the legal |
| A crucial part of a template, the people involved | | | | actions you will take against the borrower in case |
| in the loan should be given ample space for their | | | | he or she fails to repay the loan. |
| names. These people include the borrower, lender, | | | | |