What are loans between individuals?

préstamos entre particulares

Loans between individuals consist of those credits that are provided by individuals instead of lenders or traditional banks .

These personal loans are regulated by Law 16/2011, of June 24, on consumer credit contracts

Loans between individuals are those that are produced when we request money from colleagues, relatives or what is currently called P2P financing .

P2P loan platforms give the possibility to private lenders to lend money to individuals who need it, acting as intermediaries and regulators of each of the operations through their platform.

Should I formalize a contract in loans between individuals?

From GeorgeDreams we always advise to formalize a contract even if it is money that is loaned between individuals , especially to ensure the lender that he will receive the money from the borrower.

We already know that when it comes to money, even between friends or family, it can lead to serious problems. But it is not just that the process is reliable, in order to present the operation to the Tax Agency, a consumer loan contract must be formalized between individuals, according to the law.

We can draft the contract ourselves with all the personal conditions that we want to introduce in the financing operation between individuals. It is not necessary to present any public deed signed by a notary, that we save ...

You can find a type of loan contract between individuals here .

Where to request loans between individuals?

If you can't or don't have any friends or family members who can lend you the money, you can go to P2P loan platforms.

Regardless of the fact that this process or formula of loans between individuals is very old, lately they have been modernized a lot due to the increase in the market share of this product. Currently the Internet allows a greater connection between people, and this is a field that does not escape all this.

There are numerous platforms that are in charge of putting individuals or companies in need of money in contact with individuals or companies that want to get their money's worth . Private lenders leave the money in exchange for an agreed interest rate according to the risk they take.