Loan Referral Agreement Sample

Are you a financial institution or individual looking for a loan referral agreement sample? Look no further! At BizzLibrary.com, we understand the importance of having a legally binding agreement in place when it comes to loan referrals. Our loan referral agreement sample is designed to provide a clear framework for individuals or businesses to refer potential borrowers to lenders while protecting their interests.

Understanding Loan Referral Agreements

A loan referral agreement is a contract that outlines the terms and conditions between the referring party (often referred to as the "referrer") and the lender. This agreement establishes the referral relationship, the conditions under which the referral fee, if any, will be paid, and the responsibilities of each party involved.

Key Elements of a Loan Referral Agreement

A loan referral agreement typically includes the following key elements:

1. Agreement Overview: This section provides a brief introduction and background of the parties involved, including their names and contact information.
2. Referral Services: The agreement should clearly outline the scope of referral services to be provided by the referrer. This can include generating leads, assessing borrower eligibility, and initiating contact with the potential borrower.
3. Obligations of the Parties: The agreement should clearly state the obligations and responsibilities of both the referrer and the lender. This may include obtaining necessary documentation, pre-approving borrowers, and ensuring compliance with relevant laws and regulations.
4. Referral Fee: If a referral fee is involved, the agreement should specify the amount or percentage to be paid, the conditions for payment (such as successful loan approval or loan disbursement), and the timeframe for payment.
5. Confidentiality and Non-Disclosure: It is important to include clauses that protect the confidentiality of any borrower information or sensitive business information shared between the parties.
6. Termination: The agreement should outline the conditions under which the agreement can be terminated by either party, as well as any notice periods required.

Download Your Loan Referral Agreement Sample

Don't risk entering into a loan referral arrangement without a proper agreement in place. Ensure a smooth and secure referral process by downloading our professionally drafted loan referral agreement sample in DOCX format. It's an essential tool for anyone involved in loan referrals, including brokers, individuals, or businesses seeking to establish a formal arrangement.

Visit BizzLibrary.com today to access a wide range of business document templates, including loan agreements, mortgage agreements, and more. Take control of your loan referral business and protect your interests with our comprehensive agreement template.