The loan agreement is an agreement in which one party (the lender) transfers a loan to another party (the borrower). The object of the agreement can be money (including foreign currency, but with the restrictions imposed by the currency legislation) or other things, determined fungible (interchangeable). The agreement is concluded only with the actual transfer of money to the borrower or the lender.

Non-interest bearing, in particular, will be considered as a loan agreement entered into between the citizens in an amount not exceeding fifty times the minimum wage , and is not associated with the implementation of their business.

If the text of the contract does not include a provision for payment of interest, charges are calculated on civil obligations established as a function of the minimum wage, currently made on the basis of the basic.

Interest on the loan

Interest can be expressed in percentage in these transactions, including instant cash loans for cars. Such interest rate is used by all the financial institutions. This form of interest on the loan agreement is convenient for the lender, but not always convenient for the borrowers, inexperienced people can not always calculate the exact amount necessary for the proper fulfillment of the obligations to repay the debt.

It can be expressed as a fixed amount. This form of interest charges a lump sum. That is, the borrower without having special knowledge always knows how much he has to return.

The loan agreement between the two parties must be made in writing, if it exceeds the sum of no less than ten times the statutory minimum wage, and in the case where the lender is a legal person – regardless of the amount.

SMS loans or payday loans are a type of loan in which the borrower can quickly borrow smaller amounts. The loan period often involves only one month. According to the Consumer Agency and several lenders, the fees charged represent an annual effective rate of 700-800 per cent, and in some cases even higher. It is common for SMS loans are stated to be interest free or have a very low rate, but that contributions to a number of hundred dollars is charged for each loan.

Payment deadlines period of loans drawn by the rules that exist in each country and for the issuance of invoice. The age group 18 to 35 years accounted for two thirds of the payday loan borrowers in 2007, but by then, the proportion of cases involving people over 35 increased. Men are slightly overrepresented among the cases, but the proportion of women has increased.