Loan Transfer Agreement
A loan transfer agreement is a legal document that is drafted when the loan taken by an individual or an organization is transferred to another individual or an organization. The agreement is entered between three parties that is the lender, the borrower and the party to whom the loan is being transferred. The agreement contains details of all the parties involved, the terms and conditions of the loan transfer and other details.
Sample Loan Transfer Agreement
This loan transfer agreement is entered on 4th July 2012 between Morgan Group of Companies Limited referred to as the borrower, All Purpose Finance Limited referred to as the lender and JK Group of Companies referred to as the sub lender.
The borrower and the lender had entered into a loan agreement on 1st of June 2011 where the lender had provided a loan of $400000 to the borrower.
As per this loan transfer agreement the borrower transfers the liability of the remaining loan of $300000 to JK Group of Companies referred to as the sub lender.
The terms and conditions of the loan transfer agreement are as follows:
- The sub lender with office address located at 56 High Rise Road, New York, New Jersey 8907 is now liable for the outstanding amount of the loan that is $300000.
- The sub lender has to pay the loan amount along with 10% interest.
- The borrower will be no more held responsible for outstanding loan amount or default in paying installment.
- The guarantor sub lender agrees in case there is any default in paying the monthly installment amount; they will have to pay the late payment fee of $100.
Signature of the borrower: ______________
(On behalf of Morgan Group of Companies)
Signature of the lender: ___________________
(On behalf of All Purpose Finance Limited)
Signature of the sub lender: ________
(On behalf of JK Group of Companies)
Category: Loan Agreements