A loan agreement, also known as a fixed-term loan, on-demand loan, or loan, is a contract that documents a financial agreement between two parties, one being the lender and the other the other the borrower. Depending on the amount of money borrowed, the lender may decide to leave the authorized agreement in the presence of a notary. This is recommended when the total amount, plus interest, is greater than the maximum rate allowed for the small claims court in the parties` jurisdiction (normally $5,000 or $10,000). Borrower – The person or company that receives money from the lender, who then has to repay the money under the terms of the loan agreement. Use LawDepot`s credit agreement template for business transactions, tuition, real estate purchases, down payments, or personal loans with friends and family. If you are late in your car payments, talk to your financial company or lender as soon as possible. You may be can return the car or repay the loan prematurely. If you are considering entering into a personal loan or auto finance agreement, here are a few things to consider: Credit agreements usually contain information about: acceleration – A clause within a credit agreement that protects the lender by requiring the borrower to immediately repay the loan (both the principal and all accrued interest) if certain conditions appear. Adapt LawDepot`s credit agreement template to a large number of purposes, including: If you purchased a car with a financing agreement like Personal Contract Purchase (PCP), Personal Contract Hire (PCH) or Hire Purchase, the financial company owns the vehicle during the contract.