Lifting of loans
Numerous translated example sentences with “cancellation of the loan” – Spanish-German dictionary and search engine for millions of Spanish translations. General information on completing and ending a loan If you want to make a big financial outlay, you often need to make a loan. This is usually provided by a house bank and the interest is calculated at a normal rate. The lender is ready to pay off the loan from the loan agreement. On the other hand, the borrower is required to pay the contractually agreed interest and repay it at the end of the loan.
The essential aspects of a loan agreement are briefly discussed below. This applies only to a simple credit agreement and not to a consumer credit agreement concluded between a trader and a consumer. The loan agreement can be concluded informally by the contractual partners. However, if the parties only complete the contract verbally, it will continue to be valid, unlike consumer credit agreements.
The contractual partners must agree on the content of the contract, ie the amount of the loan, the duration or infinity and the interest. What significance does the repayment of the loan at maturity have? The loan is always due for payment when the time specified in the loan agreement has expired. Thereafter, the repayment of the loan is due for payment. In this case, the repayment of the loan is required.
Terminated loan contract
If no time is specified in the contract, the due date is the date on which the loan contract is terminated. It is a deadline of three weeks to note. However, a loan can only be terminated if it is completed indefinitely. If a deadline is set by contract, neither the lender nor the borrower can terminate the loan agreement.
If the loan repayment becomes due, the agreed interest is due. The interest is usually paid according to contract. If the parties dispute the interest rate in the arbitral tribunal, because it is not clear whether and to what extent it has been determined, the borrower must prove that no interest rate base exists and therefore no interest payments have to be made.
It is assumed that as a rule an interest rate is always fixed. However, if only the amount of interest is challenged, the burden of proof lies with the lender. A perpetual credit agreement can be terminated by the borrower in an ordinary and extraordinary manner. The borrower is always entitled to a simple termination right with a notice period of three years.
He must be aware that the repayment of the loan plus default interest as a result of the termination fails. A shortened period of notice of one calendar month is possible if an interest has been fixed for a specific period by individual contract and this period has expired without a new interest agreement.
On the other hand, the lender has a special right of termination if the borrower’s financial situation worsens considerably. This is to be assumed in particular if the collateralization for the protection of the credit spoils. This can be the case, for example, when a property that serves as collateral for a loan experiences much of its loss of value. A termination without notice of the lender is then possible at regular intervals.
The borrower may terminate the loan extraordinarily even without notice if he has secured the loan by a security interest in an object, such as a mortgage, or on a seagoing vessel, such as a sea mortgage. For this purpose, the borrower needs a legitimate interest, which in practice can be assumed when the borrower needs the security object, ie property or ship, for other uses.
However, in order to protect the borrower and to offset his interest loss in the event of early termination, the lender is then entitled to assert the loss caused by the early termination. That’s the way it can be in practice.