Contract Payment Schedule Template to Plan the Loan Fairly
Contract payment schedule template is the agreement about obligation on loan payment, with pre-defined dates included. The borrower must make the payment before or on the scheduled date, or else they will receive penalty which regulated by the laws. The document must be created on stamped paper and signed by both parties.
What Is Contract Payment Schedule
Contract payment schedule template is legally binding document that carry the loan’s terms and conditions. The substance of the contract includes loan amount, payment periods, as well as the interest rates. Those are the essential things and relevant information that must be included in basic agreement about the debt payment. Both the borrower and the one who’s borrowing the money must have a copy of the schedule, as it acts as a loan acknowledgment.
Here are the one that may use the schedule of payment:
- A person who’s about to lend money;
- A person who plans to borrow money;
- A person who wants to create amortization table;
- A person who wants to keep record of the monthly payments along with the interest rates.
Process of Making the Contract Payment
The contract payment schedule template should be written formally by both parties, which typically referred in the document as the borrower and the lender. To make sure that the process works efficiently, there are some steps that need to be done, as written in the following.
- Make a request to create the document, if you’re the borrower. The lender may create document for personal purposes, but the loan or the mortgage company would require the document to be done by loaning institution.
- A financial statement is required if you borrow a big amount of loan, or borrow the money from business loan. It contains information about your financial details such as your income, average expenses, and assets details.
- If you get approval, then the document can be processed. Inside the document would be attached all the terms and condition about the payment details.
- Here is where the payment schedule takes place to be processed. The borrower may submit a draft, but there is a chance it would be revised by the financial institution.
- Both parties cannot change the payment terms once the agreement is finalized. However, if it’s agreed between two parties, the existing schedule can be modified to a new one.
Why It Is Important to Use Contract Payment Schedule
There are plenty of things that needs on done on daily basis, so it is impossible to remember every single one of them. Using contract payment schedule template as a reminder is the most convenient and safe to keep track of the payment whether you’re the payer or payee. As the document ties the agreement legally, the schedule would help you to avoid problem regarding the law. It makes your life easier and organized. Not to mention that the form is free to download and easy to find. You are free to choose any templates online in any format you want, including PDF, Microsoft Word, or Excel.