The signing of the loan agreement is the final stage of the loan process. However, this is not a simple and easy stage. Most people who have been granted loans are so happy and satisfied that they do not even read the documents they are signing. And this is a very big mistake. The loan agreement is the final version of the obligation that is transferred to us at the time of providing financial support in the form of a loan. Therefore, you should read each page of the contract, even if the contract has several pages. You never know what records we can find in our contract, which is why every contract, whether a cash, consolidation or car loan, and in particular payday loans should be carefully analyzed.
Credit agreement – basic data
A positive verification process at the Credit Information Bureau is a simple and secure way to sign a loan agreement. Each of these documents consists of several elements, without which the contract loses its validity and cannot be considered as a proper credit or loan agreement. These include information such as:
- borrower’s details,
- details of the entity granting the loan,
- total loan amount,
- date and method of payment of the loan amount,
- dates and methods of paying off subsequent loan installments,
- all components of the total loan amount, i.e. the actual loan amount, costs incurred when granting the loan, etc.,
- the interest rate on the loan amount and the rules for any changes in the loan interest rate,
- consequences of delays in paying the loan installments,
- terms of possible withdrawal from the contract.
All of the above elements are quite complicated and require sufficient time to become familiar with them. So don’t go to the bank 10 minutes before closing because you can sign a document that will cause you more problems than benefits.
Credit agreement – what to look for?
Most of the documents we receive during a bank visit are written in legal and economic language that not all of us understand. Therefore, all the more should pay attention to the individual paragraphs of the contract, especially those incomprehensible to us. Let us remember that every bank employee is obliged to answer all the questions we will ask him. Especially if they relate to the document we sign. That’s why it’s worth asking! Perhaps something obvious for a bank employee is not so obvious.
We should also remember that the Consumer Credit Act, on the basis of which loans and credits are provided to customers, obliges banking institutions to fully transparency their activities. One of the paragraphs of this Act says that the borrower has the right to ask the bank to provide a model loan agreement to be familiarized before signing the contract. The terms of the design must be identical to those of the later signed contract. It is worth using it!