Most of the people in their lives have found themselves in the situation of having to borrow money or lend a sum of money to a friend, a brother, a son or a relative, often without thinking of drafting a contract for better protect yourself.
Technically these cases fall within the definition of “private loan”, which is a legal operation and required by law through the possibility of entering into a specific contract that protects both parties involved. This should make private lending a completely safe transaction, but there are still some risks of private lending that should be taken into consideration before lending or borrowing money from individuals. Helping a friend or a relative in difficulty financially, in fact, is a generous gesture, but must be done consciously to avoid being in an unpleasant situation, especially if the sum lent is considerable.
Risks of loans between individuals: attention to fraud and loot
In the event that you find yourself borrowing money from someone you do not know well or do not know at all, especially if contacted through some website, it is a good idea to pay close attention to the data you provide. to be sure not to entrust sensitive data to unsafe hands.
When there is an urgent need for money, there is also the risk of ending up in bad hands: it is always appropriate to understand who you are applying for a loan and, in case of doubt, prefer a credit institution or a financial institution, which almost surely they will know how to find a solution that’s right for you. A loan contracted with the wrong person, in fact, is often the beginning of a real personal and family tragedy.
Loan between individuals: check the interest rates
When the loan between individuals also provides for the payment of interest, it is good to be informed and check that the proposed interest rate is within the threshold rates set by the Bank of Italy. If the rate is higher you are facing someone who is trying to take advantage of your hard time; that is, to configure itself as a crime of usury.
Loan between individuals: the risk of insolvency
When you need a large or small amount of money to make an urgent source of unexpected expenses, the first thing that often comes to mind is to turn to family or friends. Lending money to a loved one in trouble is undoubtedly an admirable gesture, but what to do in case of insolvency? This situation can lead to the creation of an unpleasant situation in the family or with friends. Also in this case the best solution would be to protect yourself with a written contract valid for all purposes.
Loans between individuals: how to protect yourself?
Often, being a loan between friends or relatives, the bureaucratic formalities are neglected, relying solely on an oral guarantee or a handshake. Unfortunately, however, in many cases this way you lose the chance to recover your money in case of insolvency of the debtor.
It is therefore always better to formalize the loan between individuals, to protect both parties involved, with a contract that establishes the terms and times of disbursement and repayment of the loan.
Contract for a loan between individuals: how it should be stipulated
The ways in which a loan can be signed and formalized between individuals also change according to the relationship between the two parties, but in general these three types of stipulations are used:
- loan with private writing
- loan with bills
- social lending through dedicated online platforms
In any case, the contract for a loan between individuals, to be stipulated always in duplicate, should always contain these data:
- the personal data of the subjects involved: name and surname, date of birth and social security number
- the amount of the sum paid, clearly written
- the methods and timing of the repayment of the loan, including any penalties for late payment
- if foreseen, the interest rate that will be applied
- the express wording of a loan contract pursuant to art. 1813C.C.
- the date and the autograph signatures of the parties involved on each page of the contract
If the amount loaned or borrowed is substantial, however, it is advisable to assist an expert and also to use the presence of two witnesses who can sign the contract at the bottom.
Which types for a loan between individuals?
Among the many items to report on the contract stipulated for a loan between individuals, it is also necessary to indicate the type, which can be:
- fruitful, that is, which provides for an agreed interest rate
- non-interest bearing, when no interest is expected
- personal, ie when the beneficiary does not specify the intended use of the loan
- finalized, when instead a precise use of the sum paid is foreseen.