Also known as tiny-credit, area credit, crowdfunding or social credit, the loan between individuals is widespread in many countries. Find out what a loan between individuals is.
Loan between individual
What is the purpose of this type of credit?
Just as banks offer credits to earn interest, so do individuals. The purpose of the loan between individuals is to allow everyone to earn money with a higher profitability than a booklet. It also allows the borrower to benefit from a lower rate than the rates offered by banks and credit organizations, as well as simplified formalities.
Who is it for?
The loan between individuals is for everyone, especially those who do not have access to credit in a financial institution, unemployed individuals, unemployed, difficult financial situation, overindebtedness or investors wishing to return their capital.
Loans between individuals are booming in France, there is now a multitude of platforms specific to this type of credit. They make it possible to put lenders and borrowers in contact by informing them of all the terms and conditions to be fulfilled in order to proceed with setting up the loan.
If you are lending money to an individual, it is recommended that you have written evidence to prove the debt of the individual. Dated and signed by both parties, and to be established in 3 copies, an acknowledgment of debt remains mandatory when the amount lent is greater than 1500 euros. The terms of repayment must be indicated. This writing allows you to justify the loan by specifying the conditions (rate, terms of repayment).
Tax formalities For the borrower: declaration of the existence of the credit and statement of interest paid to the lender. For the lender: declaration of interest received when he proceeds to the declaration of his income.
Who to turn to for credit between individuals?
Someone in your family, friend, or other individual lends you money to help you regularize your financial situation. You have written a debt acknowledgment and would like to insure you in the event of a problem that makes it difficult to repay your debt.
It should be noted that not all insurance companies offer this type of loan. You must first make this credit official by completing a loan agreement (printed n ° 2062) that you can download freely from the impots.gouv.fr website. Then you need to save this document to the nearest tax receipt for your home. This is a paid formality. After registering the deed, you can then contact an insurer to see you offer a loan insurance contract.