Loan agreement

An agreement under which the bank undertakes to provide the borrower with a specified amount of money for a defined purpose and under agreed terms and duration. The borrower undertakes to use the funds according to the agreement, repay the principal after the term expires, and pay the agreed interest. The agreement contains detailed information about both parties, the loan parameters, conditions for disbursement and repayment, a repayment schedule, fees, commissions, and additional expenses, as well as the borrower’s rights, including the possibility of early repayment, the right of withdrawal, measures in case of default, and the availability of out-of-court dispute resolution mechanisms.