Borrowing money from acquaintances

Borrow money from acquaintances

Borrow money from acquaintances

We have already devoted an information article to borrowing money from acquaintances. Then it makes sense to pay attention to lending money to acquaintances. It is of course a noble endeavor to provide a loan to family or friends. Yet lending money is not always without risks.
We are happy to tell you which steps you could go through if you want to provide a loan to acquaintances. Lending the money to acquaintances must also be arranged clearly and transparently so that no misunderstandings can arise about this.
Incidentally, we call a loan that is provided in this way a private loan.

Make a money loan agreement

Make a money loan agreement

If you are going to lend money to acquaintances, it is important to make a loan agreement. After all, you cannot take out a loan without making proper agreements.
It is wise to include some basic information in this agreement. The data should be:

  • The names and addresses of both parties
  • The amount to borrow
  • The moment of first repayment
  • (monthly) terms and conditions
  • Amount of the interest rate
  • Signature of all parties
  • Copy of proof of identity of the person borrowing

The loan agreement serves as a basic document. In this document you clearly record all agreements made, so there can be no misunderstanding. Incidentally, it may also be useful to also include the arrangements for late payment. It may seem a bit businesslike. However, a good loan agreement can save a lot of trouble when lending money to acquaintances.

 Lend payments with the money to acquaintances

 Lend payments with the money to acquaintances

If you are going to lend money to acquaintances, we recommend that you pay the amount that is borrowed per transfer. As a result, it is always clear in black and white which payments have been made. This does not only apply to the payment of the loan, but also to the repayments. In this way, unlike cash payments, there can never be a discussion about the payments made.

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