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Second, what is the use of the loan contract? Four uses need to be known!

Everyone has signed a contract, which is no stranger. Many big and small agreements in life will require contracts. Loans will also have loan contracts, so what is the use of loan contracts? Below, let's talk to you from the following points.

1. Determine the basic items of the loan. The loan contract stipulates the loan time, loan amount and local interest agreed by both parties, which need to be stipulated in the contract. 2. Determine the liability for breach of contract. The loan contract will clarify the rights and obligations of both borrowers and borrowers, and any party who breaches the contract will bear relevant responsibilities. For example, restrictions on the use of loans, the contract can only be used for designated purposes, once the default is used in other fields, it will face high penalty interest and legal liability. 3. Control risks. The contract has legal effect. For lending institutions, signing a loan contract can monitor the flow of funds, ensure the return of funds and control related risks. For borrowers, they can maintain their right to use funds. 4. Act as important evidence. The loan contract is the most powerful evidence of the occurrence of loan behavior. Once you fail to fulfill your repayment obligations and the lending institution chooses to take legal measures, then the loan contract is an important evidence. The above are the four functions of the loan contract compiled for everyone. Do you understand after reading it? I hope I can help you. In addition, I would like to remind you that the loan contract should be signed carefully and the relevant terms should be carefully read to avoid unnecessary trouble.

3. What does the bank loan contract include?

1, loan type The loan type is determined by the bank according to the borrower's loan purpose, loan term and loan account.

2. Loan Purpose Loan purpose refers to the scope and content of the borrower's funds. It is an important clause in the loan contract, and the borrower must declare it truthfully. After obtaining the loan, it must be used for special purposes in accordance with the contract.

3. The loan amount refers to the amount of loan funds.

4. Loan interest rate The loan interest rate will vary according to the type, purpose, amount and term of the loan, and is generally expressed by the monthly interest rate.

5. Term of the loan The term of the loan refers to the period during which the borrower uses the funds. The bank will comprehensively determine the borrower's repayment ability, loan use and other factors.

6. repayment source repayment source refers to the channel (such as salary) through which the borrower obtains repayment funds.

7. Repayment methods Different types of loans have different repayment methods, but commonly used are: matching principal and interest, average capital, repayment of principal at maturity, repayment of principal and interest, etc. No matter what repayment method the borrower adopts, it will be indicated in the loan contract.

8. When applying for a bank loan by way of guarantee, it will be easier for the borrower to get a loan if he can provide a guarantee that meets the requirements, and this will also be indicated in the contract.

9. Liability for breach of contract In order to protect the interests of both parties, the liabilities for breach of contract that the lenders of both parties need to bear will be indicated in the contract, and they will bear corresponding legal liabilities if they "violate".