A Loan Agreement is a legally binding contract between a lender and a borrower that outlines the terms and conditions of a loan.
A Loan Agreement specifies all details related to a loan, including loan amount, interest rate, repayment schedule, tenure, and penalties. It protects both the lender and borrower by clearly defining rights and obligations.
In India, lending practices are governed by guidelines from the Reserve Bank of India.
"When you take a home loan, you sign a loan agreement with the bank specifying EMI amount, interest rate, and repayment period."