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Step 1 Loan Amount, Borrower and Lender. The most important characteristic of any loan is the amount of money being borrowed, therefore the first thing you want to write on your document is the amount, which can be located on the first line.
Follow by entering the name and address of the Borrower and next the Lender. In this example, the Borrower is located in the State of New York and he is asking to borrow 10,000 from the lender.
Step 2 Payment. Not all loans are structured the same, some lenders prefer payments every week, every month, or some other type of preferred time schedule. Most loans typically use the monthly payment schedule, therefore in this example, the Borrower will be required to pay the Lender on the 1st of every month while the Total Amount shall be paid by January 1st, 2019 giving the borrower 2 years to pay off the loan. Step 3 Interest. The interest charged on a loan is regulated by the State in which it payday loans online that dont require document faxing and its governed by the States Usury Rate Laws.
Each States Usury Rate varies therefore its important to know the rate before charging the borrower an interest rate.
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