Common Mistakes to Avoid When Drafting a Loan Agreement

Avoiding common mistakes in loan agreements can prevent legal disputes and financial losses. This article highlights key oversights such as failing to specify loan terms, repayment conditions, default provisions, and security arrangements. It also covers the importance of addressing major life events like default, divorce, or the borrower's death. To ensure your loan agreement is legally sound and properly protects your interests, consulting a lawyer is highly recommended.