A useful loan agreement makes the money trail and repayment obligation understandable. Before funds move, identify the parties, amount, currency, transfer method, repayment schedule and what happens if payment is late. Borrowers and lenders should each understand the complete cost and risk, including any separate security arrangement.
Start with the actual transaction
Write down who lends, who borrows and who is authorised to sign. Distinguish a personal loan, company financing, an advance payment and an investment: similar transfers can have different purposes and documents. Identify whether money has already been transferred and whether earlier correspondence describes different terms.
The Civil Code addresses loans in Articles 623 onward. Oral and written arrangements have different evidential implications; a clear signed document and traceable transfer help establish what actually happened. Security, interest and lending restrictions require separate review against the applicable current rules.
Terms to settle before signing
Review the agreement against a worked payment schedule rather than reading each clause in isolation. The schedule should show how an ordinary payment, a late payment and early repayment would be treated. Check that the same currency, dates and amounts appear throughout.
- Principal, currency, transfer account and disbursement conditions
- Interest calculation and every additional fee or charge
- Repayment dates, instalments and allocation of payments
- Early repayment, grace periods and notice requirements
- Default, acceleration, amendments and dispute procedure
- Any guarantor, pledge or mortgage and the limits of that obligation
Treat security as a separate decision
A clause describing a mortgage or guarantee is not a substitute for checking the asset, owner, signing authority, prior restrictions and any required form or registration. Borrower, guarantor and property owner may be different people with different risks.
Ask what exactly secures the debt, which amounts are covered, whether another creditor has priority and how the security is released after repayment. Do not assume that any proposed asset can lawfully secure any loan. Obtain a separate review before transferring money or signing a security document.
Documents for the first review
Provide a short chronology and the complete draft, including schedules and earlier versions. If the loan already exists, distinguish the original agreement from later changes and keep proof of each payment.
- Party identity or company records and signing authority
- Draft agreement, repayment schedule and related correspondence
- Bank transfer confirmations and repayment history
- Security documents, relevant registry extract and guarantor details
- Any demand, default notice, settlement proposal or court document
If payment has already been missed
Prepare a dated balance showing principal, payments and separately claimed charges. Preserve the signed documents and delivery evidence for notices. Before sending a demand or agreeing revised terms, check the contract, limitation issues, correct recipient and whether litigation or enforcement is already under way.
A review can identify unclear drafting, missing evidence and negotiation options. It does not guarantee repayment, recovery from an asset or the other party’s future solvency.
Common questions
Is signing a loan agreement proof that money was paid?
Keep separate transfer evidence. The wording of a receipt or acknowledgement matters, but the agreement and the actual payment record should be reviewed together.
Can I reuse a foreign loan template?
Use it only as a starting point. Governing law, interest, charges, security, form, language and enforcement may need changes for the Georgian transaction.
Should an amendment replace the original contract?
The documents should make clear which terms change and which survive. Preserve the original, all signed amendments and the payment history so the obligation remains traceable.
Official source
Check the applicable current text and any special rules for the transaction.
This guide provides general preparation information. The correct documents, formalities and next step depend on the facts and applicable law.