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Loan between Individuals: Credit without a Banker


A washing machine that gives up the spirit before leaving for the job, a debt that accumulates, late rent. 3 days before this thesis is submitted. Who has never faced an unwelcome financial event? In this situation, there is no need of a conventional bank loan and your relatives do not need to be able to support. Other alternatives, such as the loan between people, which does not require either banking or paper, are possible under such conditions. But how do we go about it? What are the person loan sites? How can a loan offer be made serious and fair between individuals?

Most households are very involved in lending: 8 out of 10 people have borrowed money (79%). The borrowing level is very large: nearly one in five people borrows at least once a year (17%). But they still lend a lot if they borrow: 63 percent of brokers lend money already. This reflects 72% of 18 to 24 years of age and 78% of small borrowers. Banks have not always been extremely lenient, and particularly for very atypical profiles.

The Ready Owners (PAP) or peer-to – Peer loans us from the United States, where over the years the confidence of people in their banking system has dropped and banking scandals have characterized the region. Many potential borrowers choose the collaborative economy. The PAP / P2P popularity has expanded to limits as an online forum. It is because of its pace, but also because of its lack of trust in a system where projects of the borrowers rely on the banks’ goodwill.

Loan between individuals: what does the law say?

The loan between individuals is a consumer credit as specified in Articles 1892 and subsequent to the Civil Code, as given by statute. This assumes that the lender will repay the money and the borrower will refund it with the euro repay. Articles 1353 about the availability of facts or supporting records. A loan agreement or debt approval for any loan over 1 500 is known in the Civil Code as a regime. Evidence will be accepted by all means for loans below this number.

How does the loan between individuals work?

The loan from individuals is not a quick round trip to the cash machine with a minimum amount. Stop long queues of bank and heavy cash check fees. We get you in and out with money in hand at Rapid Cash easily.

Like a bank, the lender contributes his personal capital. It therefore constitutes a legitimate consumer credit, subject to credit terms, prices, deadlines and so on.

Both of these conditions are important to escape the sadly commonplace scams. Digital transformation includes the multiplication of lending sites between persons and attempts at fraud.

Loan between individuals: what to declare?

Even if your loaner is your best friend and the sums loaned are nominal, a loan must be made to the tax department between individuals. You must report your interest earned or charged regardless of whether you are the one who loans or receives the money. These are known for the loaner to be taxable. This step is crucial: the tax administration will tax the sum as income of unknown origin in the event of an omission (voluntary or non-voluntarily).

The wear rates are another significant factor. If the parties intend to execute the loan at an interest rate, the latter shall not exceed the usury rates fixed by the departments concerned. They reflect the maximum rates you can loan money, revised quarterly.

Fees that form the remuneration of the loan for this transaction must be paid for any loan between the individuals. The interest is the amount set by the two parties and cannot surpass the authorities’ set wear rates. The creditor is excluded from storage fees (in the absence of files, logically), unlike a classical bank loan with a PAP. Having said that, beware, many online lenders and lenders will demand that you pay them a request fee beforehand. Usually, this is a scam; no serious lender has the right to charge a fee for a file without it.

(Syndicated content)

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