According to art. 69 par. 1 of the Act of 29 August 1997 Banking Law 1 through a loan agreement, the bank undertakes to provide the borrower with the fixed amount for a fixed period of time, and the borrower undertakes to use it under the terms of the contract, return the amount of credit used, including interest at specified repayment dates and payment of commission on the loan granted.
HOW TO LOOK A CREDIT AGREEMENT – DEFINITION
According to art. 69 par. 2 of the referred Act 2 credit agreement should be concluded in writing and specify in particular: 1) the parties to the contract; 2) the amount and currency of the loan; 3) the purpose for which the loan was granted; 4) rules and date of loan repayment; 4a) in the case of a credit agreement denominated in or indexed to a currency other than the Polish currency, detailed rules for determining methods and dates for determining the exchange rate, on the basis of which in particular the amount of the loan, its tranches and principal and interest installments and the principles of conversion into currency are calculated payment or repayment of the loan; 5) the interest rate on the loan and the terms of its change; 6) the method of securing loan repayment; 7) the scope of the bank’s rights related to the use and repayment of the loan; 8) deadlines and method of making cash available to the borrower; 9) the amount of commission, if the contract provides it; 10) conditions for making changes and terminating the contract.
CREDIT AGREEMENT IN A FEW CIVIL LISTS
A loan agreement is a type of contract that we conclude in writing. The loan agreement includes obligations for both the party that grants the loan, i.e. the bank or SKOK and for the borrower, i.e. a natural person, legal entity or institution. Outside the parties, the loan agreement must specify the amount and currency of the loan.
Another very important point of the loan agreement is the fact that it must specify the purpose for which the loan is granted. This can be, for example, the purchase of a car or flat. In this situation, the borrower does not receive any money. The amount determined by the loan agreement is directly transferred to the seller of the good or service.
The borrower receives cash or transfers on his own account only in the case of a cash loan, and the purpose for which he spends money from the loan is optional and depends only on him. The loan agreement also specifies on what terms and at what dates the loan contracted and the interest rate on the loan will be repaid.
The borrower joining the loan agreement undertakes to repay the loan installments at specified times along with due interest resulting from the concluded contract. Credit insurance is also often necessary, the costs of which are borne by the borrower. Credit insurance allows us to postpone loan repayment in the event of various financial problems.
It is worth to insure a loan, especially that for large sums. In the case of, for example, losing your job, we will be able to postpone your repayment, which will significantly reduce our budget, and will not cause that we will have to become even more indebted, in order to pay back the loan we already have. The loan agreement must also contain the conditions for making changes and terminating the contract.