Loans from family members or friends are popular. They often offer better conditions due to the personal relationship. But that is precisely the challenge. So that a loan from family or friends does not end in a dispute, it is advisable to observe a few, but important points.
In the event of a liquidity bottleneck or an upcoming investment, the family or friends are often asked for financial aid first. Such loans are very widespread, be it to finance basic and further training, the renovation or furnishing of a property or the purchase of a new car . The conditions of such personal loans are often better – after all, you know each other and are well-disposed. The loan from a well-known person often leaves you feeling better.
Despite the lack of regulations – written agreements are worthwhile
In addition, there are no special formal requirements for such loans . The general norms of the Swiss Code of Obligations (OR) apply. This simplifies the process of taking out a loan from family members or friends. And yet it is advisable to note a few points. So that the loan does not eventually burden the relationship with the family or friends.
Because even such a loan always involves certain risks. Both your own professional and private situation, as well as that of the lender, may change. What happens if the debtor can no longer pay the installments or can only pay them late? What to do if the creditor wants or has to get her money back early? Such and a few other questions can be settled by contract before taking out or paying out a loan. A written contract creates clarity and thus security – for all parties.
Tax benefits through a written contract
A written loan agreement also enables the debtors to deduct the loan interest from their income in the tax bill. To do this, however, the loan interest must be documented in writing, i.e. contractually. An oral agreement is not sufficient here.
In addition to the interest on the loan, a written loan contract can also specify the amount of the loan, the purpose, the repayment modalities, the duration of the contract and other collateral. There is a possible contract template here . So that the loan is a positive experience for everyone involved and does not lead to the next argument.