A loan proposal is an official document that outlines the terms and conditions of a loan agreement between a borrower and lender. This document serves as the framework for both parties to negotiate the specifics of their agreement, including things like interest rate, repayment timeline and any collateral that may be at stake. It’s important to ensure this document is thorough and accurately reflects the deal being proposed in order to avoid any misunderstandings and ensure both parties are fully aware of what they’re agreeing upon. A loan proposal is often the first step towards securing a loan and setting yourself up for financial success.