The lender may also be called the issuer, maker, payee, or seller. A simple agreement in writing will identify the following basic elements: Borrower : who is receiving the money eligibility for getting personal loan from sbi will repay it back Lender : who is giving the money and will get the money back Principal Amount : the sum of money being borrowed Interest : additional money owed, usually a percentage, based on the amount borrowed Maturity Date : when the money should be repaid to avoid being in default.
Further, the parties should consider these two additional questions: 1. How will the money be repaid. The agreement should clearly detail how the money will be paid back and what happens if the borrower is unable to repay. There are generally four types of repayment options: 2. What other details should be included.
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