What is a loan agreement?
According to the RA Civil Code, the bank or other credit organization (creditor) is obliged to provide funds (loan) to the borrower in the amounts stipulated in the contract, and the borrower is obliged to return the received amount and pay interest on it.
The loan agreement is concluded in writing. Failure to comply with the written agreement leads to the invalidity of the agreement. Such an agreement is considered null and void.
Dispute over loan / credit / agreement
The borrower has the right to challenge the loan agreement if he proves that he did not actually receive money or other property from the lender or received less than the amount specified in the contract.
Dispute over the loan agreement through the testimony of witnesses is not allowed, except in cases when the agreement was concluded through fraud, violence, threats, malicious consent of the borrower's representative, the lender, or other serious circumstances.
If, when disputing the loan agreement, it turns out that the borrower did not actually receive the money or other property from the lender, the loan agreement is considered unsigned. If he received money or other property from the borrower in less than the amount specified in the contract, the contract is considered concluded in the amount of the received amount or property.