A legal contract in which a bank arranges to loan a client a certain amount of money for a specified amount of period. The credit contract outlines all the rules and principles related with the contract. This comprises the interest that must be paid on the loan.
A credit agreement can be a lengthy and thorough document that elucidates all the terms of the contract. For the most part, all types of loans (extending from credit cards to mortgages) have some credit agreement, which must be signed and decided on by the bank or moneylender and customer. The contract doesn’t come into consequence until the document has been employed by both parties.