Loans between individuals

Between individuals, a real loan

It is true that this solution, which is developing more and more in the family environment, is much less formal than a loan granted by a banker, who will require a certain number of supporting documents - income, expenses - before d '' accept or not to lend money. Very often it is then a "repayable" loan (each month it will be necessary to pay a monthly payment made of principal and interest), the rate of which is very variable: between 3 and 18% for a consumer credit and the a priori fixed duration. And if the debtor cannot pay one or more monthly payments, the penalties fall. In addition, it should be known that in a financial establishment, the funds will be delivered only after a delay ranging between 7 and 14 days.

Credit between individuals: flexibility and ease
Compared to a bank loan, the family or friendly loan solution offers the advantage of flexibility and ease: the rules of the game are freely set between the parties. It can thus be decided that the capital will be repaid at the fixed term, at a very low interest rate, or even zero. However, it is strongly advised to observe a certain formalism if we lend money to one of his friends or one of his children, so that this aid does not turn into a big misunderstanding that ends up in the office. of the judge or… by a tax adjustment. The loan of money between individuals therefore requires formalizing this act by a contract established between the interested parties and including clearly understandable repayment terms. If the loan of money without a bank does not require a period of reflection, it is still recommended to take several days before signing a contract or an IOU, this allows to take into account the financial commitment of the borrower but also of the lender.

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