Loan Settlement Agreement
A loan settlement agreement is a document that is drafted when an individual or a party referred to as the lender enters into an agreement with another individual or a party referred to as the borrower for the settlement of the loan. The borrower agrees to settle the loan taken from the lender for a certain amount as he is unable to repay the complete amount. These types of agreement contain the details of the parties involved, the settled loan mount and other terms and conditions.
Sample Loan Settlement Agreement
The loan settlement agreement has been made and entered into on this effective day of 8th of June 2012 between Master Finance LLC referred to as the lender with principal office address at 56 Tyson Moore Avenue, Holly Wood, Los Angeles 7890 and Oscar Group Limited referred to as the borrower with principal office at 41 West Side Road, Holly Wood, Los Angeles 7810.
The borrower has taken a loan of one million dollars from the lender on 8% rate of interest.
As on the present date, the borrower still owes the lender a part of the loan amounting to $700000 and wish to settle the loan as he has faced huge losses in the business and is not able to pay the loan.
The terms and conditions of settlement agreed by both the parties are as follows:
- Settlement amount: The lender agrees to waive off the interest rate and now the lender has to pay the remaining loan of $700000 without any interest.
- Mode of payment: The borrower has to make the payment in 4 monthly installments with the first installment being paid within one week of the agreement effective date.
- Cancellation of agreement: In case the borrower fails to pay the settlement amount, the lender can take legal action and can also sell the assets of the borrower to get the loan amount.
Signature of the borrower: _____________
Signature of the lender: ______________
Category: Loan Agreements