Why is there a loan between individuals? What are the precautions to take and what is the legal and fiscal framework surrounding the procedure? What are the pitfalls of a loan of money on the Internet?
So many questions that deserve you to read our special file. We also warn you against many proposals that swarm on the web, but that you can sometimes receive by mail. These are, of course, dishonest attempts that must not be answered.
Situations that lead to an individual
The activity of loan between private individuals remains limited in France and for the most part is reserved for the restricted frame of the family or the friends. But caregivers sometimes pose a problem by their too often informal nature, especially in case of default of the borrower as we will see later.
My loan was refused by my bank
One of the reasons for an individual to go to another individual is when his or her own bank has denounced him or her. These are more frequent situations because since the beginning of the financial crisis, funding agencies have hardened their position.
The major network banks are today distinguished by a stricter compliance with the maximum debt ratio , and the “remainder to live” and by a more rigorous risk analysis than before.
- Your loan is refused? Find an alternative solution
I am stuck at the Bankord
The situation of an over-indebted household is particularly complicated to manage. The situation becomes all the more critical when the over-indebtedness file has not been accepted by the Banque de France. The household no longer has access to credit and the only way to repay the debts is through a family loan.
I am looking for a low rate
In some cases, opting for a personal loan is simply guided by the sole purpose of making savings by avoiding a bank loan, expensive and time consuming to obtain. It must be said that consumer loans and even more money reserves are actually quite expensive.
In addition to the many formalities that await the borrower (constitution of the file, many pieces to provide …), it is sometimes necessary to be patient to have the answer of the banker. There will be additional charges. Count on average 1% of the amount loaned for the application fee plus the cost of the credit insurance which will depend on both the amount borrowed and the age of the beneficiary.
Loans from individual to individual do not in any way constitute a regulated activity, which remains the monopoly of the banks, but are fully authorized and otherwise subject to tax obligations.
The reporting obligation
If the loan amount exceeds € 760 (in one or more installments), creditors and debtors must submit to the declaratory tax liability before February 15 following the year in which the loan was granted. It does not matter whether you have taken care to write the loan or not. If the loan is granted without interest , you will have to fill the form nº2062 , available in all the tax centers or downloadable on the site of the tax administration.
Declaration of interests by the lender
If the loan has been granted at an interest rate, it must not exceed the rate of attrition set by the Bankord. The lender will also have to declare the interest received on the movable capital heading .
It is strongly advised to formalize the loan by writing. It does not matter if the document is authenticated or not at a notary. The private writing is perfect. Remember to write the act in two forms : one for the lender and one for the creditor.
Debt recognition does not require a great deal of formalism. The only thing you need to pay attention to is to include the legal notice, that is: the date, the borrower’s signature and the amount of debt in figures and letters. The original is to be kept by the lender. Nevertheless, it is preferable that the borrower keeps a photocopy.
The loan agreement
It is possible to sign a private document that constitutes a real loan agreement. For that, it is necessary in addition to the elements which appear in the recognition of debt that the borrower also signs the form and adds by hand the amount in figures and in letters. It will also fill as many originals as there are borrowers.
Register forms at the tax office
Even though registration is not mandatory, it is highly recommended. Registering the debt recognition or the loan agreement with the tax office is a way of giving them an official character , but also of certifying the date. In addition, only acts authenticated by the taxes can be opposed to them in case of tax control or in front of a court in case of litigation.
Internet scams: be vigilant
Internet has given rise to a vocation of financial intermediaries which with few exceptions do not seem very reliable. Be aware that outside the family, it is nevertheless possible to find loans granted by individuals, provided to be vigilant.
Never lend money via the internet, regardless of the rate conditions and guarantees provided by the so-called serious borrower. You are likely to never see your money again.
In the same way, never borrow via internet without guarantees. You could be the victim of identity theft. These are very common practices in forums or social networks. Do not disclose any personal information to strangers and transmit even less documents about you (payroll, bank statement, ID …)