Loan agreement – what points must it contain


The loan agreement is the most important document to be signed when incurring debt. It is as important to the borrower as it is to the lender. This document details the conditions for providing financial support. Debt repayment is based on its provisions, and in the event of disputes between the parties, the provisions of the document are conclusive. See what points must be included in the loan agreement.

What data must the loan agreement contain?

What data must the loan agreement contain?

Each contract, including payday payment must contain basic information. These include the identification of the parties to the contract, that is, who is involved in the transaction and what role it plays. The parties’ data are recorded from ID cards, and if the debt is incurred by a loan company, the agreement provides information such as its name, address, representative, NIP number, KRS, REGON. Mandatory parties to the transaction must also sign at the end of the contract and initial each page of the document.

If you plan to take out a loan in a parabank check How to take a safe payday loan – some practical tips for clients.

The most important paragraphs of the loan agreement

The most important paragraphs of the loan agreement

After the introduction, which specifies the parties to the transaction, the loan agreement must also include paragraphs such as:
description of the subject of the contract, i.e. determining which loan is granted and for what (if it is intentional),

  • loan amount;
  • the loan agreement must specify the dates on which the document is valid;
  • it is necessary to indicate: on the day, month and year from which the entries will be valid and expire,

Loan costs – this is one of the most important points because it tells you exactly how much you will pay for the loan; the loan costs indicated in the document should include all fees charged by the parabank, e.g. commissions, interest, insurance, operational preparation fees; their summary is the indication of the total cost of the payday loan expressed using the APRC, i.e. the Actual Annual Interest Rate; The cost of the loan also includes important information about who pays PCC on the loan.

Loan repayment rules , i.e. the number of installments and their dates, as well as the form of repayment of the debt (transfer, payment at the cash register, collection of installments by a parabank employee); in the case of long-term loans, repayment of the payday loan is based on the repayment schedule attached to the contract. See how to pay off payday loans.

Additional information affecting loan repayment

Additional information affecting loan repayment

Securing the payday loan – it is required by some loan institutions; as collateral, for example, bills of exchange, surety or pledge are considered, it can also be insurance.

Early repayment or extension of the loan ; early repayment gives the right; the loan agreement should specify on what terms it is possible and whether the borrower will therefore incur additional costs; the same applies to extending the repayment deadline, which usually involves additional fees.

Consequences of untimely repayment – in the event of a loan not being repaid on time, the parabank may apply the sanctions specified in the contract; usually these are prompts, accrual of penal interest, and in the event of ineffective soft recovery take legal action. For more on this topic, see Payday payback – see what the consequences are.

Withdrawal from the loan agreement – information on the possibility of withdrawing from the loan should be included in the agreement; according to the law, the borrower has 14 days to do so after signing the document; the contract should clearly specify the conditions for such withdrawal, i.e. e.g. the form of notification to the lender of such an intention or the time of return of borrowed funds.

Complaints – the loan agreement protects not only the loan company but also the borrower; for this purpose, it gives the opportunity to lodge a complaint if the service is performed improperly; the document sets out the conditions for submitting complaints and the procedure for dealing with them.

Termination of the contract – when one of the parties does not meet the terms of the contract, the other must be able to terminate it; therefore, a point is placed in the loan contract that talks about the possibility and specifies when it is possible.

Also check if the online non-bank cash loan requires a loan agreement.