However, some types of contracts do not operate on this principle. Their existence and validity are subject to additional formalities. Loan contracts are such a type of contract. You have the option to apply for guarantees in exchange for your loan. If you want to do this, you need to make sure that you include sections that deal with it. If you need to secure the loan, you need a specific section. The security would be an asset used as a guarantee of repayment. Real estate, vehicles or other valuables are examples of assets that can be used. If you need guarantees, you need to identify all the safeguards necessary to guarantee the agreement.
Another section you need is the security agreement. If you don`t need a guarantee, you can omit it from your loan agreement. In the area of interests, insert information for any interest. If you don`t calculate interest, you don`t need to include this section. However, if you are, you must specify when the interest on the loan will be collected and whether the interest will be simple or assembled. Simple interest is calculated on the principal unpaid, while compound interest is calculated on unpaid principal and any unpaid interest. Another aspect of interest you need to have in detail is whether you have a fixed or variable interest rate. A fixed-rate loan means that the interest rate remains the same for the duration of the loan, while a variable rate loan means that the interest rate may vary over time depending on certain factors or events. This declaration is limited to loans made by credit professionals. It does not entirely reject the theory that the existence of a loan contract depends on the prior transfer of a property. However, with respect to loan contracts, the theory of actual contracts has been seriously questioned. If this reasoning is extended to all types of loan agreements, including non-professionals, the theory could become obsolete.
As far as guarantees are concerned, if each party signs a separate security agreement for it, you must include the date on which the security agreement is signed or signed by each party.