A loan format is a legal agreement that outlines the terms and conditions of a loan, as well as the borrower’s and lender’s rights and responsibilities. It serves as an essential document to both parties, specifying precisely how the loan will operate and reminding each party of their obligations. This agreement should be comprehensive, covering the finer details such as interest rates, repayment plans and default scenarios. By adhering to a uniform loan format, both borrowers and lenders can rest assured that their interests are adequately represented. Thinking about taking out a loan? Make sure you read the fine print – and know precisely what you’re signing up for.