At present we have many alternatives to get a loan, and today we are going to tell you more about the loans between individuals, a new formula that is revolutionizing the loan market, and what we think can be very interesting.
What are loans between individuals?
Loans between individuals have become a very popular financing option in recent times. Especially for those who prefer to avoid the interests of banks.
One option is to ask friends and / or relatives to ask them to lend us money. Both parties can benefit if agreeable conditions for both are agreed.
Although these loans should be based on trust, it is important to record through a loan contract between individuals to avoid problems in the future.
How is the agreement between individuals formalized?
If you chose to formalize the agreement, you will need a loan contract between individuals, which must be registered with the Treasury. There are two contract models, with and without interest.
A contract should always include the following information:
- The personal data of both the borrower and the lender
- The date and place
- The amount of the loan
- The duration or repayment term
- If you are going to apply interest or not, and the interest rate
It should be noted that loans between individuals will be subject to Capital Transfer Tax, but what with this contract will be exempt from taxation.
Although you will have to present the model 600 and in the Autoliquidación section mark the EXEMPT box (21).
What can happen if you do not sign a contract?
According to the Personal Income Tax Law, if you do not sign a contract, the Treasury will assume that there is a payment, even if there is none, and will force the lender to declare the interest in the IRPF.
Another problem is that the Treasury may consider this action as a disguised donation so as not to have to pay the interest, and therefore the loan will be subject to the Inheritance and Donations Tax.
On the other hand, what can happen if the borrower or lender dies?
- If the borrower dies the debt will be inherited and the heirs will pay the debt
- If the lender dies the debt will be a right and the heirs will receive the money
Loans between individuals are becoming more common, and if you are thinking about doing so, we strongly recommend that you sign a contract and formalize the loan agreement.
Person to person loan platforms
If you do not know anyone who can lend you the money you need, there is no problem, there are many Person to person platforms to get in touch with other individuals.
The loans between individuals, also known as Person to person of English peer to peer and that means from person to person, are the best online loans that you will find, and through which you can get a lower interest rate than what your bank could offer you.
These loans are based on the crowdlending model, which consists of financing different projects through a multitude of private investors.
They can be requested and hired through online Person to person platforms, which include people who need financing and others who are willing to lend them that money to achieve profitability.
To participate you will only have to register on the platform and then analyze your profile to assign a level of risk to establish a price of the loan accordingly.
When we have the approval our project will be published on the web so that the investors who are interested can contribute their money to collaborate in the loan.
Once the amount we need is reached, they will enter it in our account.