Use LawDepot`s credit agreement template for business transactions, tuition, real estate purchases, down payments, or personal loans with friends and family. Interest calculated on a loan is regulated by the home state and is governed by the state`s laws on usury rates. The rate of usury of each state varies, so it is important to know the interest rate before calculating an interest rate to the borrower. In this example, our loan comes from New York State, which has a maximum wear rate of 16% that we will use. The main difference is that private credit must be repaid on a given date and a line of credit offers revolving access to money without a deadline. Agreements may be written in the presence of legal staff or tailor-made by the parties concerned. Most credit institutions have their own credit agreements. Families engaged in commercial activities and who attach importance to legal certainty also have their own forms. It is usually not an act of distrust when forms are obtained, but it serves for security and formality. Many people view signature forms as an act of defiance, especially for private credit, but this is usually not the case. Forms are only important for legal certainty and record retention. .