To borrow a sum of money, it is not mandatory to go to a financial institution.
Most often, this happens in a friendly or family.
Few then formalize the transaction in writing ... and many will regret it bitterly!
It is indeed essential to perform certain formalities for this type of loan.
Otherwise, it can be much more difficult to recover the amounts due.
Getting credit between particular is for anyone wanting to get a loan without going through a bank.
Getting credit between particular turns out to be the solution to get a loan especially if the borrower finds himself stuck France bank (FICP).
The French do not know it but they have the ability to lend money to each other.
Interlibrary loan particuliers.com provides administrative tools to help lenders and borrowers to set up a loan through documents.
To download these documents you need to register.
After registration you can access the various tools:
download of documents in order to achieve a possible loan between you and an individual.
Management simulations of your credits.
contacts with brokerage professionals.
Most often it comes to brokers specializing in banking and working all over France.
They will be able to find you the best credit rates.
Background on the particular loan
In permetant to provide administrative documents to individuals so that they can achieve their own funds, they can find a non-negligible interest in setting their own baths and conditions notament on rates, duration and amounts committed .
Finance institutions offer many credits accompanied by often prohibitive rates.
The booking fee is usually 1% of the borrowed amount with a minimum and a maximum following establishments.
Pay attention to institutions that advertise you a fee before tax (VAT) and thus give you nice surprises reading your contracts.
Most often it remains the prerogative of the lender.
legal limits of rates in 2010:
When you lend money to someone, it is best to have written proof to justify that debt. So you have mentioned there some criteria so that this IOU is efficient. It is the borrower himself must manually perform this IOU. Be aware that it is compulsory for civil if the loan amount exceeds EUR 1 500. The IOU must be dated and signed by both parties.
It must be established in three copies, one for the plaintiff, one for the lender and also one that will allow for the recording.
When one lends money to a friend or family member, it is sometimes preferable to mention the loan in writing not to encounter problems later.
The existence of an IOU avoids go to court in case of bad faith on the part of the applicant or borrower.
When writing an IOU, indicate repayment terms. If nothing is specified, it may require repayment of debt after sending a formal notice. If despite this money is not returned, litigation is inevitable.
If the amount is less than 4 000, this process is quite easy. However, if it is between 4,001 euros and 10,000 euros, it is the court that will be seized. If the sum exceeds 10 000 to that point, you have to hire an attorney because the case is before the High Court.
For a loan to the higher consumption € 1524: 19.27%
for a cash reserve or overdraft: 20.63%
for a loan repayable less than € 1524: 21.59%
for a home loan rates average is 4.67%
for professional loan the average rate is 5%
Today it is possible gifts to lend money at rates ranging from 2% (livretA) up 20.13%.
Why we would leave the banks the privilege of debt, we can construe savers to those who need money.
This requires guarantees on the borrower:
- Identity. (identity card photocopy)
- domiciliation Adressse.
- payslip photocopy.
- Shopping Project.
Loans between individuals are subject to the rules of the loan agreement in general :
- their remuneration is free (within the limits of wear rate)
- over the amount of 760 €, the preparation of an act, stating the terms of repayment, is mandatory and leads its tax reporting obligations.
The tax reporting obligations
Before 15 February of the year following the loan:
- you must declare to the tax authorities any loan greater than 760 euros, although it is not formalized in writing, on a form No. 2062 "loan contract Declaration", available for download on this site or in a tax office.
If one creditor or one debtor has consented or obtained during a given calendar year, several loans of a unit amount or less than 760 euros, but the total principal exceeds this limit, all loans must be declared by that creditor or debtor, so it is not possible to circumvent this requirement by splitting loans into several loans below this limit.
- if the loan was made with interest, you must report the amount on Form No. 2561, diponible on this site or in a tax office.
In addition, if you are the lender, you must declare the interest on your tax return, in the category of investment income.
If you owe the lender and the solidarity tax on wealth (ISF), the loan is a debt that must be included in your taxable estate.
Conversely, if you are a borrower and taxable to the ISF, you can deduct the loan from your taxable estate.
Get used to the loan terms between particular
The recording of the act with the tax authorities is optional. Its sole purpose of giving a certain date. It has drawbacks. If the debtor is recalcitrant, you are forced to go to court to take protective measures, because it is a private document.
On the other hand not having the quality of an unsecured creditor, all creditors, privileged and mortgages are repaid first. If you have preferred to establish a notarized mortgage agreement, you get a mortgage guarantee.
I lend money to a friend, neighbor, colleague ..... What to do?
You've got to establish a written, even friends.
He justifies the release of funds, said the loan terms (interest rate or not, repayment terms ...) and facilitates the recovery of the loan to default. This writing may take the form of an IOU or a notarized mortgage.
The choice between these two conventions depends on the extent of the amount loaned and the risk that you intend to run. If you opt for a debt of gratitude, the act may be established under private signature and that as many original parts. It must bear the written mention of the hand of the debtor of the amount due, in words and figures.
Whatever the nature of the act, the following tax formalities must be completed:
For the borrower
- declaration of the existence of the loan
- statement of interest paid to the lender.
By the lender
- declaration of interest received in the income statement.