Loan Agreement – 金銭消費貸借契約 (Kin-sen Shōhi Taishaku Keiyaku)

The Loan Agreement, known in Japanese as 金銭消費貸借契約 (Kin-sen Shōhi Taishaku Keiyaku), is the final legal contract between the borrower (you) and the lender (bank) in a Japanese housing loan process.

It is signed after the loan is officially approved during the 本審査 (Hon Shinsa) stage and before the funds are disbursed.

What Is It?

  • A binding legal contract that defines the terms of the loan

  • Specifies your repayment obligations and the bank’s disbursement conditions

  • Usually signed at the bank or real estate agent’s office

  • Required before the loan is released to pay the property seller

Key Components of the Contract

Required Items on the Day of Signing

  • Valid ID (Passport, Residence Card)

  • Registered Seal (Jitsuin / 実印)

  • Seal registration certificate (Inkan Shōmei-sho / 印鑑証明書)

  • Personal bankbook and bank card

  • Proof of insurance purchase (if required)

  • Property documents

Note: Many banks also require the presence of a judicial scrivener (司法書士) at signing, especially if you’re using a mortgage to register the property.

After Signing

  • The loan execution date is set — typically 3–7 business days later

  • The bank disburses funds directly to the seller or developer

  • The buyer (you) pays any remaining balance and fees

  • The property title is transferred and the mortgage is registered