Consumer lending agreement: Individual conditions

By law, each consumer credit agreement is divided into two parts. The first part is the general conditions, the second part is the individual conditions. The part where individual conditions are specified in a table form.

What are individual conditions?

The part of the loan agreement with the general terms and conditions is a section that specifies the items that are the same for each credit client. The individual part of the loan agreement is intended to display information about the transaction with a specific person. It is in this part of the loan agreement shall include: interest rate, credit amount, terms and manner of redemption, amount of commission, the timing of payment, and exchange of information between the parties to the transaction, contact information of the borrower and the lender, and other similar information.

For individual credit conditions, only the table form is always selected, with a minimum of 16 rows and 3 columns. If additional parameters are used, they are written below the main ones. In this case, the numbering from 17 is used. You can’t change the table form to a different one, because it is fixed by the current legislation. If one of the main parameters of individual conditions is missing, it cannot be removed from the table.

The individual terms of the agreement and the general terms must correspond to each other. If during the reading of the document it turns out that these conditions contradict each other, then only the conditions specified in the individual part of the loan agreement are considered valid.

Factors affecting the formation of individual credit conditions

It may take several days from the moment the loan agreement is signed until the borrower receives the amount specified in the agreement. During this time, the financial institution does not have the right to change individual lending conditions unilaterally. Consumer credit conditions may differ significantly from bank to bank. Here everything depends on the policy that was chosen by the financial organization. Some customers can expect special conditions.

Factors that affect the individual terms of a loan agreement include; private ownership, length of service, income, quality of credit history, insurance policies, and so on. Banking organizations can also offer special credit conditions to clients belonging to a certain group; pensioners, employees of specific companies and enterprises, young families, and other categories. Each bank has its own preferential offers.

Mandatory points of individual conditions

First of all, the amount approved by the lender is indicated, followed by the loan terms. If the loan is not issued in the national currency, the procedure for setting the exchange rate is prescribed. You must specify the frequency of mandatory payments and their amount (no specific values are specified, but a link to the payment schedule is provided). Individual terms and conditions also specify the procedure for early repayment, insurance, loan collateral, lending purposes, the possibility of transferring credit debt to third parties, and so on. Each point of the individual terms and conditions should be carefully studied before putting your signature on the loan agreement.

You can find out how to get consumer loans for urgent needs in one of our previous reviews.