A Legal Loan Document is a written agreement between two parties that outlines the details of a loan, including the amount borrowed, payment terms, and applicable interest rates. This document provides legal protection to both the borrower and lender and allows them to have a clear understanding of their legal obligations. It also helps set expectations for each party and provides a recourse if needed in future disputes. Written in plain language, a Legal Loan Document puts the loan’s terms into an enforceable contract. It is a vital tool for any business operating under existing financial regulations.