Loan agreement

Loan agreements can be understood as contracts that are signed between the lender and the borrower before the former ushers out any finances. Loan agreements are legal documents that protect both parties until the borrower has paid up. There are different types of loan agreements and they are not limited to working capital loans, revolvers, facility agreements and many more. Financial institutions such as banks, building societies and credit unions are responsible for offering people loans.

Before you get a loan, it is of paramount importance that you read the contract carefully before putting a signature because failure to do so may lead to complications in future. For instance, when you just sign the contract without reading the interest rate to be paid can lead to problems when you realise that it is more than what you can afford. Loan agreement also allows the borrower to take legal action if the lender is demanding more than what have been agreed on the contact.

Loan agreements can be secured loans whereby the borrower agrees to let the lender possess some of his or her property worth the borrowed money after the failure of paying back. Loan agreement forms can be completed online for people applying using the internet or they can be individually completed on hard copies. One thing to note about loan agreements is that the terms are determined by the lender not the other way round.

Mortgage calculator

A mortgage calculator can be defined as a system or tool that people use to calculate any possible changes that are bound to happen when the variables that attached to a mortgage loan changes. A mortgage can be defined as a loan that people and businesses use to finance property purchases; this loan is a long term loan therefore a person needs to use a mortgage calculator for them to be able to understand any implications that mortgage variables can have on the monthly payment that the mortgage holder has to pay.

Mortgage calculators are used to calculate mortgage payment when the interest rate changes, the mortgage payment that a person pays for a mortgage loan increases when interest rates increases. Financial institutions use mortgage calculators when they are determining the monthly installment that mortgage holders would be required to pay every month. There are very variables that affect the monthly payment that a person pays for a mortgage and most of these variables are not fixed variables therefore they are subject to change.

A mortgage calculator is not only used to determine the monthly payment that would be made by a certain mortgage holder it is also used to determine the number of years that it would take a person to pay back the mortgage plus interest. People that specialise in calculating mortgage payments for loan seekers use mortgage calculators to get accurate figures.

Loans for people with bad credit

Loans for people with bad credit are harder to come by and generally also impose higher interest rates. Loans for people with bad credit differ depending on how bad the credit is. When one speaks of loans with people with bad credit they may also be referring to loans for people who do not have any credit history. Furthermore, loans for people with bad credit do not only refer to cash loans but also encompass items that are bought on higher purchase.

It is important that when one is looking for loans with people for bad credit they do not become tempted to use illegal entities as these entities usually referred to as loan sharks may charge exorbitant interest rates as they do not abide by the legal limitations in this regard. Furthermore, one should check their credit history as they may not actually need to go for loans for people with bad credit.

Loans for people with bad credit also include debt consolidation loans. These types of loans may only be applicable if one is able to afford repayments but may need to do so over an extended period in order to make them more palatable. Different institutions have different regulations with regards to loans for people with bad credit and it is thus possible to find those that will offer credit for people in one’s bracket.

Self employed loans

Self-employed loans are finances that are given to people who have personal businesses which are not connected to a big private or government institution. Self-employed loans can be understood as personal loans simple because they are private and designed to assist small business to prosper in the competitive market. The finances taken can be used to purchase stock, manufacturing equipment, property and various other things. Self-employed loans are offered by many financial institutions in South Africa such as banks, credit unions, building societies and many more.

Self-employed loans can be easily applied online using electronic gadgets such as mobile phones and computers which have internet access. There are certain requirements that borrowers should possess such as proof of residence, proof of insurance, proof of identification, proof of income and also a valid business plan. Self-employed loans are also offered to people who have at least attained the age of 18 and more.

Loans offered to people who have small business come in two forms, either secured or unsecured, the former is when the financier takes pledges from the borrower such as property as some form of insurance or warranty until the money has been paid back whilst the latter is when the financier takes risks by giving people loans who have bad credit scores. Self-employed loans are given according to the monthly income of the individual and the lesser the income the lesser the loan given.


Financial institutions and loan sharks lend people and businesses money only when they are certain they would get their money back. Loan seekers are required to pay interest together with the loan, the interest that these loan seekers pay can be either fixed or subject to change. Financial institutions first look at a person’s credit history and monthly income before they lend them money, people that have bad or poor credit history have difficulty borrowing money because money lenders consider them to be high risk.

Loan sharks that lend out money make profits from the high interest rates that they charge for their loans. Lending people money is a very risky business because a person cannot be certain that they will get their money back therefore many money lenders have come up with different systems that help them differentiate loan seekers that pose as risks from good clients. Companies that lend out money have to be registered for them to be considered legal entities.

Loan seekers apply for loans so that they can pay for different things, these loans seekers are advised to first to assess the financial status before applying for a loan. When a person lends another person money he or she expects the money within a certain period therefore it is the duty of the borrower make sure that they meet their part of the agreement by returning the money to the lender on time.