A lender can use a legal credit agreement to enforce the repayment if the borrower does not maintain the end of the agreement. For more information, read our article on the differences between the three most common forms of credit and choose who is right for you. If the borrower dies before repaying the loan, the authorities will use their assets to pay the rest of the debt. If there is a co-signer, he is responsible for the debt. This draft loan agreement can be used for multiple loan purposes, for example. B private loans, car loans, student loans, home loans, business loans, etc. Regardless of the use of the loan, the structure of the credit agreement remains the same. Overall, each document in the credit agreement promises the following two things: for private loans, it may be even more important to use a credit agreement. To the IRS, money exchanged between family members can look like either gifts or loans for tax purposes. . .