If borrowing with a BKR listing is not possible, relatives or acquaintances are sometimes called upon. These are the most important rules for a private loan.
When borrowing money, a negative BKR listing is often a stumbling block. According to the Credit Registration Office (BKR), the number of people with payment arrears has increased to 740,000. When they need a loan, family or friends can provide a private loan.
Need help paying off bills? We offer online bad credit loans to everyone
An online bad credit loan has the advantage that the conditions for a loan from Citrus fruits may be less strict.
You also determine the loan interest rate together, which means that the costs can be lower.
However, a private loan can also cool or even break the relationship. Therefore keep the following rules in mind when you take out a private loan.
Before a private loan can be concluded, the situation of the recipient and the need for the loan must be clear. Is a private loan the right solution? The financial problems may be structural and other help may be needed. How much risk does the lender run that the money will not be repaid and will he run into problems himself? To be able to determine this, openness is important.
Record the agreements
If the lender can miss the money for a longer period of time and the recipient can repay the loan, good agreements must be made about the private loan. It is wise to record these agreements in a contract. This provides clarity and you can fall back on this in case of problems. The following must be stated in the contract (in duplicate):
- The loan sum
- Start and end date (duration)
- The loan interest
- The payment schedule
- Your name and address
- Signature with the date of signature.
- Possibly: ‘what if the loan is not repaid’.
Ensure that interest rates are in line with the market
As a friend service, provide a private loan with a low-interest rate. Please note: you may be charged a hefty tax on this. The tax authorities see a private loan with a low-interest rate as a gift. Read within which bandwidth the gift exemption applies. Outside the bandwidths, you pay, with a low-interest rate, a levy of 10% – 40%. Curious about the market interest rate? In our overview, you will find the lowest loan rates in the market.