top of page

What are the covenants and restrictive agreements that come with the health loan?

Curious about a health loan

What are the covenants and restrictive agreements that come with the health loan?

The covenants and restrictive agreements that come with a health loan may vary depending on the lender and the specific terms of the loan. However, some common covenants and agreements that may be included in a health loan are:

1. Repayment schedule: The borrower is typically required to make regular payments to repay the loan, which may include principal and interest.

2. Collateral: Depending on the lender, the health loan may require collateral such as property or other assets to secure the loan.

3. Insurance: Some lenders may require the borrower to take out insurance to protect against default or other risks.

4. Reporting requirements: The borrower may be required to provide regular financial statements and other information to the lender to ensure that they are complying with the terms of the loan.

5. Use of funds: The borrower may be required to use the loan proceeds for a specific purpose, such as medical treatment or purchasing medical equipment.

It is important for borrowers to carefully review and understand the covenants and restrictive agreements associated with a health loan before accepting the loan.

bottom of page