Unlike banks, the borrower can directly contract with the lender without going through long and complicated formalities. Also, the borrower will be able to benefit from an approximately low interest rate and a cheaper cost of credit. Lender and borrower are the only actors in shaping the contract that unites them, based on trust and mutual respect.
The maximum amount of this sum depends mainly on the lender and the understandings between the two parties to the contract. However, he can grant a loan up to a limit of 100,000.00 euros. Note that the lender is required to make a declaration to the tax authorities as long as the amount paid exceeds 760 euros under penalty of a tax fine of 150 euros.
The establishment of an act is necessary to prove the existence of the agreement.
On the one hand, the document can be drafted by both parties or by a lawyer, this is the private deed. Once finalized, the deed is registered with the tax department and acquires probative value.
