So far, the loan informal poses several types of problems
Money lending is a transaction where a person gives money to another subject that she refund later. A cash loan for consideration is a loan that has an interest rateIt is intended for the case where one or more individuals willing to help another person by lending him money. Often, the loans between individuals is done in an informal way, thanks to the mutual trust which applies in the relations in family or among friends.
It can lead to misunderstandings on the date of repayment, regularity of payments.
In extreme cases, in the absence of a written document, it will be difficult to prove that the loan was one, and not a gift from the hand of the one who has lent money.
It is therefore advisable, even between individuals who know each other (family, friends), draw up a loan agreement. The document allows it, if the money is lent for use is quite specific that the borrower will have to comply, to clarify that use in the contract. The document also serves to provide that the amount borrowed will be increased interest for its repayment.
With respect to interest, it is important to note that: The document allows you to predict if the sum loaned will be repaid in a single payment, in installments, where as soon as the borrower will have the means to repay.
Finally, the document allows you to apply penalties in case of delay in repayment, that is to say, that the sum to be refunded will be increased by interest at the legal rate (if applicable, this interest is combined with the interest rate set by the parties). The lender may also ask, to guarantee repayment of the loan, the borrower provides a guarantor. If this is the case, the deed of guarantee and the name of the person on bail will be mentioned in the loan agreement.
The amount of the loan must be declared to the tax administration when the loan agreement provides for interest.
The borrower will make a statement on a printed n°, the summary Declaration of operations on securities and RCM (IFU), and the lender must declare the interest received in its income tax return.
When the sum lent exceeds euros or if a person has contracted several loans each below this amount but the cumulative is greater than euros a year, the loan contract must be declared to the tax administration on a print-out n° 'Declaration of loan agreement'.
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