Interest is payable at the end of each interest period, interest rate periods can be fixed periods (usually one, three or six months) or the borrower can choose the interest period for each loan (options are usually one, three or six months). Collateral – A valuable object, such as a home, is used as insurance to protect the lender if the borrower cannot repay the loan. Once you have the information about the people involved in the credit agreement, you need to describe the particularities surrounding the loan, including transaction information, payment information, and interest rate information. In the transaction section, you indicate the exact amount due to the lender as soon as the contract has been executed. The amount does not include interest incurred during the term of the loan. . . .