What does a credit agreement have to contain to make it secure?

What does a credit agreement have to contain to make it secure?

Polish banking institutions provide their clients with access to various types of accounts, deposits, loans and other financial products. Of course, the most popular are mortgage, home, car or cash loans. Regardless of the type of loan chosen, the bank and the client must conclude and sign a very important document, which is a loan agreement. It contains basic information and a description of rules and rules that safeguards the interests of the bank and the client.

Each customer should read the loan agreement very well before signing it and making a financial commitment. It is worth paying attention primarily to the records that seem to be incomprehensible and discuss them with the bank employee so as to avoid unpleasant surprises. The contract is the basic and most important document defining the rights and obligations of the client and the bank.


Basic information contained in the loan agreement

loan agreement

The contract is a document that should be signed when making a bank financial commitment. The main task of this document is to determine the conditions that apply when taking a loan. Therefore, the loan agreement provides information such as interest rate, commission, loan insurance, real APRC cost and the size and type of installments. The loan agreement also contains information on the total loan repayment amount as well as the dates and consequences of not paying the installments on time. The contract has a written or electronic form. The information mentioned above is very important because it protects the customer against billing non-contractual fees and other costs.


Other important elements of loan agreements

loan agreements

In addition to the information and data mentioned above, the credit agreement should have confirmation that the customer has read its content (confirmation in the form of an electronic statement or a first-party copy on each page of the paper document). Electronic documents are sent to an e-mail address and confirmed with an authorization code sent by the bank (usually as an SMS to the customer’s phone number). Debt repayment schedule is another important element of the loan agreement. It provides information on the dates and amounts of subsequent installments. It is worth keeping such a schedule so as not to forget about installments.


Baku and borrower details

borrow money

The basic information contained in the loan agreement is the bank’s and borrower’s data. Thanks to this, we know who is granted financial support. In other words, the contract includes your name, address, PESEL number, series and customer ID card number. The remainder of the contract includes a specific offer, cost calculation and other relevant information regarding repayment and the consequences of delays. It is worth checking all records and dispelling your doubts during a conversation with a bank employee.