Protection of the intereses of the borrower While signing the credit contract, The pledge (mortgage) contract, The contract of guarantee

Nowadays signing a contract of loan-credit is a self-evident and regular process in order to buy a new property or a long-desired thing, or invest in present or future business.

 However, in order to get a credit, it is necessary to take into account a whole new range of conditions of a potential lender, as well as to sign the documents prepared by a lender – contracts that often contains conditions unclear to the borrower.

Is is crucial to understand the content of the documents that are going to be signed as well as all conditions, because these conditions are the basis of future relations between the lender and the borrower. Furthermore, you need to remember that after getting a long-term credit loan the situation may change, for example, the borrower’s income may decrease, the borrower may lose his job thus being unable to make necessary payments. It is therefore important, while signing the credit contract, to understand clearly what will happen if such situation will occur, and how to act in order to avoid court disputes with the lender or losing your property in case of mortgage.

In order to have certainty and understanding of your rights and obligations, before signing the signing of the documents we recommend you to appeal to the lawyers of Law Office “INLAT PLUS international” who will inspect the content of the contracts, explain your rights and obligations that comes with the contracts, as well as inform you about possible risks and problems that may come up during the duration of the contracts.

Lawyers of Law Office “INLAT PLUS international” have many years of experience in assessment of credit loan contracts, we know exactly what should be given special attention:

• What is the type of the interest rate for the loan – fixed or variable. It affects the amount of monthly payment for the borrower.
• Are there any options for the lender to change the additional interest rate for the loan? If so, in what capacity and in which cases.
• Is the annual interest-rate calculated according to the existing regulations on protection the rights of the consumer;
• Is there an option for the borrower to return the loan before the term prescribed by the contract, if so, what are the conditions and commission fee;
• Are there any guarantees in the credit contract, for example, pledge (mortgage) of the immovable property, guarantee from the third person, financial pledge; 
• If there is a pledge (mortgage) in the contract, it is necessary to understand in which cases and in what form the lender may use his rights to use the pledge, for example, if the borrower stops to make payments, the lender must sell the immovable property according to market value or he has the right to sell it at a free price as he wishes;
• If there is a guarantee from the third person in the contract, you should understand, in what capacity the guarantor will answer for the borrower, what are the guarantor’s rights and obligations if the borrower stops to make payment according to the credit contract and the lender asks the guarantor to do it instead.

The above mentioned are just some examples to pay attention to during the signing of the credit contract, the contract of guarantee and the pledge contract.

Before the signing of the contract, make sure that you clearly know, what you are signing!