loan-agreement

Vocabulary Word

Definition

A 'loan agreement' is a legal contract between a borrower and a lender. It outlines the terms of the loan like how much, the repay time and the interest rate.

Examples in Different Contexts

For real estate transactions, a 'loan agreement' specifies the details of a mortgage loan, including the property used as collateral. A real estate agent might explain, 'The loan agreement will detail the monthly payment, interest rate, and what happens if the buyer defaults on the mortgage.'

Practice Scenarios

Academics

Scenario:

These rising educational costs are alarming. Do we need to seek an alternative financial plan to fund our education?

Response:

That sounds wise. Let's consult a financial advisor and understand the implications of a student loan agreement.

Tech

Scenario:

This new software development project might require additional funds. We need a detailed plan to secure and manage the resources we need.

Response:

Considering the scope of the project, it may be beneficial to prepare a loan agreement for the additional funds.