A personal loan is a contract with a lending institution to borrow money. These loans usually range from a few hundred dollars to several thousand dollars. Many businesses such as banks, credit unions, and loan companies offer these loans. Some loan companies operate online while others operate from a local facility. Personal Loans in Carson City can be secured or unsecured. When a loan is secured, personal property is put up as collateral. If a person can’t pay back the loan, the creditor can gain possession of the collateral under certain circumstances. An unsecured loan is a loan obtained without collateral. These loans are typically for a lesser amount of money than secured loans.
Before a person signs a personal loan contract, he should thoroughly read the terms and conditions of this legal document. He should also understand key terms in the contract. The person borrowing the money will often be referred to as the debtor or the borrower. The party issuing the loan will typically be referred to as the lender or creditor. A loan should contain the full legal names and addresses of the lender and borrow. It’s usually not acceptable business practice to use a post office box on contracts for personal Loans in Carson City. The agreement should also contain the full amount of the loan and date the loan is furnished.
A personal loan will state when the borrower is to begin repayment of the loan. This is usually a month or two after the loan is first furnished. It will detail the repayment plan. This plan will include the due date of the monthly payments and the amount to be paid every month. It will also include the interest to be paid and how the installments will be paid to the lender. A personal loan agreement will have the final date for repayment. A loan agreement should state if there is a grace period for monthly payments. This may be 10 to 20 days before penalty fees are applied.
Learning about personal Loans in Carson City will allow a person to understand what he is responsible for. It will help protect against unprofessional business practices on the part of the lender. For more information on personal loans, please contact a professional at Great Basin Federal Credit Union. This business can handle many types of loans.