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How to make a loan between individuals ?

Every time that money is lend between private individuals , a real contract is concluded , even if this agreement takes place orally. We speak, more properly, of a mortgage . The mortgage, therefore, is not a contract that only banks can stipulate, but any other private person, regardless of their job or profession.

The loan between private individuals is legal and lawful; it is not only the banks authorized to lend money to citizens, but private individuals can do so, without the need for special authorizations. There is even no need for a written contract. It is also common practice to lend money to relatives and friends, especially for low figures, without caution or specific forms. Contrary to what is often believed, in fact, the loan contract does not necessarily require that one of the two parties (the lender) is a bank, as well as being a private individual. The only thing to pay attention to, in the case of loans between individuals with interests, is that the measure of the latter does not exceed usury .

Are interest on private loans due?

The loan agreement provides for “automatic payment” of interest payments to the legal essay updated annually by the ministry. However, the parties are free to agree otherwise and do not provide any remuneration for the loan. Therefore, if the lender and the borrower have established nothing in relation to the interests, these are due. The mortgage with interest is called a mortgage for interest or interest ; the interest-free mortgage is called a free or non-interest bearing loan .

Here is one of the reasons why it is advisable to provide a contract: in it the parties can establish a measure of interests different from the legal essay (provided it is not usurious) or specify that the loan is free of charge. In the absence of a written test, in fact, it will be difficult to prove any different agreements between the parties with respect to the legal standard of the mortgage contract (ie interest-bearing loan with legal interest) use  gold eagle capital to improve your private money loan in california.


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