Loan Agreement Terms

1. Loan Application and Approval

This Loan Agreement governs all loan products offered by First International Bank, including personal loans, auto loans, home equity loans, and business loans. By accepting loan proceeds, you agree to these terms.

1.1 Application Requirements

• Completed loan application with accurate information
• Proof of income and employment verification
• Credit history review and approval
• Collateral evaluation (if applicable)
• Debt-to-income ratio assessment

1.2 Loan Approval Process

• Initial application review within 2-3 business days
• Credit decision based on creditworthiness
• Final approval subject to verification of information
• Loan terms may be modified based on risk assessment

2. Interest Rates and Payment Terms

Interest rates and payment terms vary based on loan type, amount, term, and creditworthiness.

2.1 Interest Rate Types

• Fixed Rate: Interest rate remains constant throughout loan term
• Variable Rate: Interest rate may change based on market conditions
• Promotional Rate: Special introductory rates for qualified borrowers

2.2 Current Interest Rate Ranges

3. Repayment Obligations

You are obligated to make timely payments according to the agreed payment schedule.

3.1 Payment Schedule

• Monthly payments due on the same date each month
• Payment amount includes principal and interest
• First payment due 30-45 days after loan funding
• Final payment includes any remaining balance

3.2 Payment Methods

• Automatic payment from checking or savings account
• Online banking payments
• Phone payments
• Mail payments (allow adequate time for processing)
• In-person payments at any branch

4. Collateral and Security

Certain loans require collateral to secure the debt obligation.

4.1 Secured Loans

• Auto Loans: Vehicle serves as collateral
• Home Equity Loans: Real estate serves as collateral
• Secured Personal Loans: Deposit account or other assets

4.2 Collateral Requirements

• Adequate insurance coverage required
• Regular maintenance and care of collateral
• Notification required for changes in collateral status
• Bank lien recorded on applicable collateral

5. Default and Remedies

Default occurs when you fail to meet the obligations outlined in your loan agreement.

5.1 Events of Default

• Failure to make required payments when due
• Breach of any loan covenant or condition
• Providing false or misleading information
• Bankruptcy or insolvency proceedings
• Failure to maintain required insurance

5.2 Remedies Upon Default

• Acceleration of entire loan balance
• Collection activities and legal action
• Repossession of collateral (if applicable)
• Reporting to credit bureaus
• Assessment of additional fees and costs

6. Prepayment and Early Payoff

You have the right to prepay your loan in whole or in part at any time.

6.1 Prepayment Rights

• No prepayment penalty on most loan types
• Interest calculated to date of prepayment
• Refund of unearned interest (if applicable)
• Written payoff statement available upon request

7. Insurance Requirements

Certain loans require insurance coverage to protect both borrower and lender interests.

7.1 Required Insurance Types

• Auto Loans: Comprehensive and collision coverage
• Home Equity Loans: Homeowner's insurance
• Business Loans: General liability and property insurance

7.2 Insurance Standards

• Coverage amounts adequate to protect collateral value
• Bank named as loss payee or additional insured
• Continuous coverage required throughout loan term
• Proof of insurance provided annually

8. Fees and Charges

Various fees may apply to your loan based on loan type and servicing requirements.

8.1 Origination and Processing Fees

• Loan origination fee: 1-5% of loan amount
• Application fee: $50-$500 (varies by loan type)
• Appraisal fee: $300-$600 (third-party fee)
• Document preparation fee: $150-$300

8.2 Ongoing Service Fees

• Late payment fee: 5% of payment or $25 minimum
• Returned payment fee: $35
• Loan modification fee: $250
• Payoff statement fee: $25

9. Credit Reporting

Your loan payment history will be reported to major credit bureaus.

9.1 Credit Bureau Reporting

• Monthly reporting of payment history
• Positive payment history helps build credit
• Late payments reported after 30 days past due
• Default and charge-off status reported

10. Modification and Assignment

Loan terms may be modified by mutual agreement, and loans may be sold or assigned.

10.1 Loan Modifications

• Modifications require written agreement
• May include changes to payment amount or term
• Modification fees may apply
• Credit impact varies by modification type