When to Use a Loan Agreement
A Loan Agreement can be practical for borrowers in a few scenarios. It is possible to use this kind of financial contract to lend people money for real estate, businesses, student loans, or personal purchases.
When you make an agreement with another person, aLoan Agreement provides assurances that the borrower will honor the deal.
If you are lending someone money, you should always create and sign a Loan Agreement before giving your money to the other person.