No, if guarantees are provided for the loan, it can be for each amount. If the borrower does not remxet the bill and the security is worth less than the loan, the lender can seize the collateral and sue the borrower on the total loan amount. If the lender recovers more than the remaining balance from the sale of the security, each surplus will be repaid to the borrower or other debtors, depending on the situation. Before the housing loan is paid, the borrower is required to sign and execute the loan agreement. The loan agreement governs the terms of the loan facility made available by the Bank and the creation of a mortgage on the house for the benefit of the bank. Although it is often considered a mere formality by most home buyers, the loan contract is the most important legal document containing the buyer`s rights and commitments. Once you have information about who is involved in the loan agreement, you must describe the details of the loan, including transaction information, payment information and interest rate information. In the transaction section, you indicate the exact amount owed to the lender after the agreement is executed. The amount does not include interest over the life of the loan. They will also detail what the borrower must pay in return for the amount of money they promise to pay to the lender. In the «Payment» section, you`ll find out how the loan amount is repaid, how payments are made (p.B monthly payments, on demand, a lump sum, etc.) and information on acceptable payment methods (p. B for example, cash, credit card, payment order, bank transfer, debit payment, etc.).

You must include exactly what you accept as a means of payment, so that no questions are allowed about payment methods. The balance owed in a loan agreement should not be repaid until the lender requires a recovery. In other words, the loan is repayable «on request.» There is no fixed deadline for repayment of the loan. Upon request, the borrower has a certain amount of time to repay the remaining balance of the loan agreement. A loan contract is any written document that recalls the granting of money. Loan contracts can take different forms. For commercial banks and large financial firms, «loan contracts» are generally not classified, although «loan portfolios» are often subdivided into «personal» and «commercial» loans, while the «commercial» category is then subdivided into «industrial» and «commercial real estate» loans.