In this section of the loan agreement, you must provide various information, such as.B. the effective date of the contract, the state where the legal proceedings are to take place, and the specific county of that state. This is important because it deals with when the loan agreement is active and saves you from having to travel to another location in the event of a dispute or non-payment of the contract. Interest is expressed as an annual percentage rate of charge (APR). The conditions also indicate whether the interest rate is « fixed » (remains the same throughout the loan) or « variable » (changes in the case of a change in the key interest rate). Once the agreement is approved, the lender must pay the funds to the borrower. The borrower will be held in accordance with the signed agreement with any penalties or judgments that will be decided against him if the funds are not repaid in full. Secured loan – For people with lower credit scores, usually less than 700. .