Loan agreement – template and discussion

Both private and non-bank loans should be subject to a contract. In the text below, you will find information about the elements of the loan agreement, whether the oral agreement is binding and in what situations you can withdraw from the loan agreement. At the end of the article you will find a sample loan agreement.

  1. When should a loan agreement be drawn up?
  2. Elements of the loan agreement and their discussion
  3. Loan agreement template

In what situations should a loan contract be drawn up?

In what situations should a loan contract be drawn up?

The loan agreement may take the form of:

  • oral,
  • written.

An oral contract is as binding as a written contract. BUT – in accordance with art. 720 § 2 of the Civil Code, the loan value exceeding $ 500 should be made in writing. Lack of written documentation may make it difficult for the lender to recover money.

A loan agreement is created when one of the parties (the lender) transfers ownership of a certain sum of money to the borrower. By signing the document, the Borrower undertakes to return the amount specified in the contract within the set time limit.

The loan agreement is a consensual agreement

Importantly, the borrowed property becomes the borrower’s property. Accordingly, the money received can be used in any way. The loan agreement is a so-called consensus agreement. This means that for its effectiveness all you need is a consistent statement by the parties.

Important – the loan agreement is governed by the Civil Code.

Elements of the loan agreement – overview

Elements of the loan agreement - overview

  • The loan agreement consists of the following elements:
  • date and place of the loan,
  • indication of parties to the contract,
  • subject of the contract,
  • refund conditions
  • declaration of the borrower’s assets,
  • conditions for terminating the contract,
  • signatures of the parties.

Date place of the loan and parties to the contract

Information about the date and place of the contract is placed in the upper part of the document in designated places. In the following, please provide details of the parties to the loan agreement. In this case, the parties are:

  • lender,
  • borrower.

If the parties to the contract are natural persons, the document should include basic data, i.e.

  • first name and last name,
  • address,
  • ID number (ID card or passport),
  • Social Security,

If the lender is an economic activity (e.g. a loan company), then the document should contain information:

  • full company name (important – loan brands are not the actual names of the lender),
  • address of the lender’s registered office,
  • NIP, KRS and REGON number.

Subject of the loan agreement

The subject of the contract may be money or movable property. Importantly, the subject of the contract should be sufficiently presented. That is, the loan amount must be expressed both verbally and digitally. The parties to the contract are also required to determine the currency of the loan.

The repayment period should be indicated on the subject of the contract. In the case of a loan against Miranda, the loan period is: 12, 24, 36 and 48 months.

Refund conditions

This section indicates the manner in which the debtor undertakes to return the money. Borrowed funds can be returned in cash or by bank transfer. In the case of online loans, satisfaction of claims is usually done by bank transfer.

Importantly, the repayment terms of the loan may include clauses that indicate whether the money is to be returned with a one-off payment or in installments. It is also specified here whether the loan is subject to commission, interest rate, etc.

Declaration of the borrower’s assets

The lender can provide security if he or she thinks that the borrower may have problems settling the debt. The most popular forms of loan collateral are:

  • bill of exchange,
  • real estate pledge,
  • transfer of ownership as security.

Withdrawal from the loan agreement

Withdrawal from the loan agreement

In the case of non-bank products and consumer loans, the borrower may withdraw from the loan agreement within 14 days of signing the document. To this end, he should submit a letter to the lender. The document can be delivered in person to the lender’s headquarters or sent by post.

It is worth emphasizing that the date of resignation is counted from the date of the postmark, not the date of delivery of the document. If the borrower withdraws from the contract on the fourteenth day, then the borrower must comply with the above request. Importantly, you do not need to provide reasons for your resignation.

When can a lender cancel a loan contract?

Under the Civil Code, the lender has the right to withdraw from the loan agreement if he thinks that the borrower is unable to return the money.

BUT – this can only happen if he was not aware of the borrower’s poor financial standing. In the area of ​​online loans, this situation is rare, as most loan companies assess their creditworthiness based on the BIK rating.