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READ BEFORE SIGNING IMPORTANT NOTICE EACH PARTY to THIS AGREEMENT  Form

READ BEFORE SIGNING IMPORTANT NOTICE EACH PARTY to THIS AGREEMENT Form

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hey guys welcome back to the channel today we are going to talk about something crucial for both borrowers and lenders the top five most important Clauses to look out for in loan agreements whether you're a business owner taking out a loan or someone lending money these Clauses can have a huge impact on your financial position one of the key Clauses to be aware of in any loan agreement is the default interest Clause so what does this mean in simple terms this Clause kicks in when the borrower fails to make repayments on time once a borrower defaults the lender can then impose a higher interest rate on the amounts overdue this could be significantly higher than the regular interest rate and in some cases it can compound causing the debt to balloon quickly for borrowers this Clause can create a financial burden in the event of a Mis payment for lenders it's a safeguard to ensure timely repayment always check the default interest rate and see how it's calculated so

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