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Loan Agreement with Security

This agreement allows the loaner to repossess specific assets belonging to the loanee if he or she does not keep up repayments.

When lending large sums of money it is important to understand the legal implications of doing so, and to be sure that you have the means to recoup your money if repayments are slow or not forthcoming. One of the best ways to do this is to take out a loan with security, meaning that there is something of value – for example, property or shares – which can be repossessed if the debtor defaults on the loan.

Our loan agreement with security form allows you to arrange a loan in a quick but legally rigorous manner and ensures that you will not end up empty-handed if you choose to loan out money. It couldn’t be easier to fill out – all you need to do is enter the relevant details where indicated.

Please note that this document is NOT to be used for lending to consumers, or for making any loans which could be interpreted as such. This sort of lending is regulated by the Consumer Credit Act and requires a licence.

This loan agreement allows you to specify:

  • the amount of the loan
  • the rate at which interest will accrue (either as a percentage or tied to the Bank of England base rate)
  • repayment details, including the term of repayment, monthly payment amount, and method of payment
  • options for early repayment
  • details of any property given as security
  • what constitutes defaulting on the loan, also detailing the lender's rights

It also supersedes and overrides any previous agreements and understandings between the two parties, and prevents any third party from trying to enforce any part of the agreement.