Finance Glossary

Loan Agreement

The legally binding contract between a borrower and lender that sets out the terms of the loan, including the principal amount, interest rate, APR, total amount repayable, repayment schedule, fees, and the rights and obligations of both parties. Under the Consumer Credit Act 1974, all UK consumer credit agreements must be in writing and include specific prescribed terms.

Related terms

APR
Annual Percentage Rate — the true annual cost of borrowing,
Cooling-Off Period
A legal right under UK consumer credit regulation allowing b
Early Repayment Charge
A fee charged by some lenders if you repay a loan before the
Loan Term
The agreed length of time over which a loan must be fully re
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