Loan Investment Agreement
When an individual plans to make an investment but does not have the money to do so, he takes loan from a financial organization in order to make the investment. In such cases an official document is drafted between the borrower and the lender which is known as a loan investment agreement. The details mentioned in the agreement usually include the loan amount, the type of investment that the borrower is making, the term of the loan and method of repayment.
Sample Loan Investment Agreement
This loan investment agreement has been drafted and entered into between Ben Financial Services referred to as the lender and Jim Bean referred to as the borrower and is effective from 10th of June 2012.
As per the agreement the lender agrees to provide a loan amount of $300000 which will be used by the borrower to invest in shares and equity of Times Group Limited.
The terms and conditions of the agreement are as follows:
- The agreement is effective from 10th of June 2012 and is valid for a period of five years till 9th of June 2017.
- The borrower needs to repay the loan by paying an equal monthly installment. The installment needs to be paid by 8th of every month.
- The borrower will be charged an interest rate of 10% annually on the loan amount.
- In case of failure of payment of the loan amount by the borrower, the lender will acquire the share and equities in which the borrower is investing.
- In case of default in paying the installment, the borrower will be charged a late payment fee.
In agreement to the above terms and conditions, both the parties have put their signature below:
Signature of the borrower: _______________
Signature of the lender: _________________
(On behalf of Ben Financial Services)
Category: Loan Agreements