One of the elements that the loan agreement specifies is its purpose. The definition of a loan agreement assumes that the bank provides the borrower with a certain amount of cash for the purpose specified in the agreement. The borrower undertakes to allocate the amount of money transferred by the bank to the purpose of the contract, i.e. the purpose of the loan . The loan agreement becomes binding upon signing. The loan period runs from the moment the bank withdraws cash.
The loan agreement is concluded between the bank and the borrower. Only a bank or credit unions can grant us a loan. Non-banking institutions grant loans. The loan agreement is therefore a bilateral agreement. However, in this relationship the bank is the dominant party. This is because it has control rights. Namely, it has the right to check the borrower whether he uses the money put into use in accordance with the purpose of the loan . In addition, it has the right to control the regularity and timeliness of repayment of loan installments.
Pursuant to the statutory definition, the loan contract must specify the loan strictly. The purpose of the loan is nothing but the purpose for which the money will be spent. Only if we indicate the purpose of the loan will the bank grant it to us. The most common breakdown of loans available on the market is the breakdown based on the purpose of the loan . The names of individual loans also come from this most often.
Cash loan for any purpose
In the event that we apply for a cash loan for any purpose, as the name implies, we do not need to specify the purpose of the loan in the contract. What we spend the funds from the cash loan for any purpose depends only on us. We do not need to specify this when entering into a contract with the bank. The bank does not interfere in what we spend the money on. The decision is ours and can be changed at any time.