When taking out a loan, it`s important to have a written agreement that outlines the terms and conditions of the loan. This document is commonly referred to as a loan agreement, but there are several other names for it that you may come across.
One alternative name for a loan agreement is a promissory note. This is a legal document that outlines the details of a loan, including the amount borrowed, the interest rate, and the payment schedule. It also includes a promise (or “promissory note”) from the borrower to repay the loan according to the agreed-upon terms.
Another name for a loan agreement is a loan contract. This is similar to a promissory note, but it may also include additional terms and conditions, such as requirements for collateral or restrictions on how the funds can be used.
In some cases, a loan agreement may also be referred to as a credit agreement or a financing agreement. These terms are often used interchangeably with loan agreement, but they may be more commonly used in specific industries or contexts.
Regardless of the name used, the purpose of a loan agreement is the same: to provide a clear and legally binding agreement between the lender and borrower. If you`re taking out a loan, it`s important to carefully review and understand the terms of the agreement, as it will govern your obligations and responsibilities throughout the loan term.