Tips for lending money to family members or acquaintances
Unemployed people in particular often have poor chances when applying for a loan. Unemployment benefit does not count as regular income and so many applications are negative. The private credit checker query is also usually disadvantageous for this group of people. However, there are also credit marketplaces where money seekers and unemployed people can borrow money from private individuals.
However, caution is required here. If the loan amount is chosen too high, overindebtedness can be brought about. As an alternative to such credit marketplaces as trucredit, unemployed people can also borrow money from relatives or acquaintances. You can find out which aspects need to be considered in the following article.
Personal loans – what needs to be considered?
As already mentioned, personal loans are not only available on credit marketplaces. Unemployed people in particular have the opportunity to ask for credit in the private environment. Any loans can be used to finance high additional payments, car repairs or the purchase of important household appliances such as a washing machine. Not only can the unemployed get a financing opportunity, but also students who want to buy a car, for example, can gather sufficient capital.
Personal loans are no longer uncommon, especially among relatives. However, granting a personal loan is a risk for donors. Therefore, this form of financing should only take place if there is sufficient trust and the creditors are sure that they will get their money back. For security, lenders should insist on written evidence. A committed credit agreement with repayment agreements can secure the lender.
Credit agreements between private individuals?
Credit contracts do not have to be concluded between institutions and private individuals, i.e. customers. Rather, such contracts can also be concluded between natural persons and legal entities, but also between two private individuals. This means that loan contracts can also be granted by relatives or acquaintances. However, any loans should only be closed if there is a good relationship of trust.
The fronts should also be clarified. Financial issues can also have an impact in other areas. This can lead to significant disputes. It is not uncommon for families to break apart from the burden of debt. An exact loan agreement serves to clarify the fronts. This offers legal certainty to both parties and enables objective clarification in the event of differences.
Key points of a personal loan
In order for a private loan to not trigger disputes, the data must be recorded in the same way as with a conventional loan agreement with the bank. These data include the following aspects:
- Personal data of the lender, i.e. name and address
- Personal data of the borrower, i.e. name and address
- Signatures of lenders and borrowers
- Amount of the loan
- Agreed interest rate
- Repayment duration
- Date of repayment and borrowing
- Possibly. Special repayment clauses
The most important data from a loan agreement between two private individuals is thus characterized by the recording of the personal details of the borrower and the lender. In addition, the loan agreement must contain data on the borrowed money itself. With a possible contract, both parties secure themselves and the awarding of the money is based on trusting cooperation.
This gives the lender in particular the opportunity to prove the debt relationship. But the borrower also has some protection. This does not run the risk that the creditor will demand early repayment.