Final answer:
A document detailing the specifics of a bank loan is known as a promissory note. It includes information crucial for the agreement, such as the loan amount, interest rate, and repayment plan. Additionally, the bank may require income verification, a credit check, a cosigner, or collateral.
Step-by-step explanation:
The document that specifies the terms and conditions of a bank loan, including the amount, interest rate, and repayment schedule is called a promissory note. A promissory note is a financial instrument that signifies a written promise by the borrower to pay back a specified sum of money to the lender at a predetermined timeline with agreed-upon terms. This document can involve other details such as collateral, which is property or equipment that can be seized by the bank if the loan is not repaid.
Banks typically require prospective borrowers to fill out forms related to income sources, and they may conduct a credit check to evaluate past borrowing history. Additional conditions might be the inclusion of a cosigner, who is someone that agrees to repay the loan if the original borrower cannot. The process and requirements are designed to protect the financial interests of the bank while also providing a clear agreement for the repayment of the loan.