Question

A __________ specifies all of the terms of a loan and the obligations of the borrower.

Answer 1

A loan agreement specifies all the terms of a loan and the obligations of the borrower.

Answer 2

Answer:

A loan agreement specifies all of the terms of a loan and the obligations of the borrower.

Explanation:

All loan terms and the borrower's responsibilities are laid out in a loan agreement. Loan agreements formalize the loan process by creating legally binding contracts between two or more parties. Simple promissory notes between friends and family members to more complex contracts like mortgages, auto loans, credit cards, and short- or long-term payday advance loans are just a few examples of the various loan agreements that can be made.

• A formal contract between a lender and a borrower is known as a lending agreement (loan agreement). Lending agreements detail every aspect of the loan, including the principal sum, interest rate, term, amortization schedule, fees, terms of payment, and any covenants.
• Loans are sums of money borrowed with the intent to repay them within a predetermined timeframe. If a borrower fails to return the money to the lender within the allotted time, the loan agreement comes in handy. When both parties sign and agree to the terms of the agreement, it is legally binding and enforceable.