What is characteristics of credit contract?

A credit contract typically includes key characteristics such as the principal amount (the money borrowed), the interest rate (the cost of borrowing), and the repayment terms (schedule and duration). It outlines the rights and obligations of both the lender and borrower, including any fees or penalties for late payments. Additionally, it may specify collateral requirements and any conditions that could affect the loan, such as default clauses. Overall, it serves as a legally binding agreement that governs the lending relationship.