A loan is defined by art. 1813 of the Italian Civil Code as the “contract with which a party delivers to another a specific amount of money or other interchangeable things, and the other party undertakes to return as many things of the same type and quality”.
The contract that is most frequently applied is that entered into with Banks or Banking Institutes.
A loan comes with various clauses which, despite not always being immediately understandable, are necessary to regulate the relationship between the parties in the course of its expected duration: the mode of payment of the loan, the terms for repayment of the principal and interest, the setting of contract management costs, the regulation of and costs for early repayment, the provision and maintenance of guarantees, the consequences of relative default (delays) and absolute default (non-payment).