In the context of individual-to-individual lending, the private lender and the individual borrower agree on the interest rate applicable to the loan. Under these conditions, personal loans are often more attractive. As for the methods of obtaining, the latter are more flexible.

Beyond a certain amount borrowed, it is necessary to file a tax return. According to the Consumer Code, the declaration of funds borrowed from individual to individual requires the 2 parties to declare to the tax authority within 12 months any loan between individuals of an amount greater than or equal to 5,000 euros.

Peer-to-peer lending: the answer to the urgent need for money

Credit between individuals: what you need to know

In terms of credit, the bank holds a significant market share, compared to peer-to-peer lending institutions. However, the enthusiasm of individuals for this method of financing is real and growing.

For good reason, the relatively flexible conditions for obtaining loans between individuals are one of the reasons for the growing success of loan agreements between individuals. In addition, this type of financing is accessible to the borrower profile who obtains a refusal to his loan file to finance his projects (car purchase, work in his real estate,...).

When the lending credit organizations consider that the credit file does not meet the necessary conditions to obtain a loan, the loan between individuals is then an effective solution to finance your projects on credit without a bank.

As a young entrepreneur, for example, it can be difficult to meet the multiple conditions required by traditional credit agencies without solid guarantees. This observation is all the more true for the individual registered in the FICP (File of Incidents of Repayment of Credits to Individuals).

The same applies to the borrower registered in the FCC (Central File of Checks) deprived of any possibility of contracting a personal loan with a bank. From another point of view, credit without a bank is also aimed at the borrower who simply wants to get out of the classic banking system and its often high rates.

At first glance, peer-to-peer credit is a rapidly emerging term that is becoming part of consumer habits. In fact, it is becoming common to use the collaborative loan system to apply for credit, compared to consumer loans offered by traditional banks.

Credit from individual to individual: legal obligations

For information and non-exhaustive purposes, the interest rate on peer-to-peer lending is 3% in the second quarter of 2023. According to the Public Investment Bank, the application of the interest rate is optional and is based on the goodwill of the individual lender.

What is the interest rate on peer-to-peer lending?

Overall, peer-to-peer lending financial organizations have a relatively similar mode of operation for establishing a loan agreement between individuals. In a way, investors who have capital invest a sum of money within the credit organization of their choice.

In return, the loan organization guarantees a yield that can reach 3% per year, depending on each financial organization. In principle, this return is generated by the interest paid by individual borrowers.

From this point of view, the loan between individuals is governed in the same way as a conventional consumer credit. In this case, the establishment of a credit agreement between the individual borrower and the private lender remains applicable. Here are the mandatory information included in this type of loan operation :

From individual to individual: the loan agreement is drawn up via Form n ° 2062 signed by the borrower and the lender and the lawyer. Then everyone keeps a copy.

As part of a debt recognition: the loan agreement between individuals takes the form of a statement written, dated and signed by the borrower. In which case, the lender retains the original copy. As for the second copy, this declaration is sent to the tax service. For the individual borrower, the latter keeps a copy of his declaration of recognition of debt. Note that beyond 1,500 euros, this document takes the form of a notarial deed which must be drawn up by a notary.

In all cases, the loan agreement between individuals must mainly mention the last names, first names and full addresses of the 2 parties. At the same time, this type of contract must include the terms of the loan (amount, duration, frequency of monthly repayment payments, interest rate applied, if applicable).

Loan agreement between individuals: what are the mandatory information?

peer-to-peer lending with us: how does it work?

Since its creation, we have been revolutionizing the banking sector with low-interest loan offers that are among the most attractive on the consumer credit market. With more than a million projects financed to date, the digital platform has a system for lending money anywhere in the world.

Therefore, this most innovative lending system makes it possible to obtain funds in a minimum of time, under the best conditions. As an intermediary, the digital platform offers particularly advantageous loans to individuals. For professional investors, consumer credit is a business investment product.

In this context, the digital platform excludes peer-to-peer lending from its offers for a simple reason. It is professional investors who finance borrowers' life projects, whatever they may be. Through the personal loan, these professional investors (associations, private or public companies,...) take part in the participatory credit system of the innovative digital platform.

In this way, the borrower can finance his project without going through a bank. It is also a way to obtain an attractive consumer loan financed by a single financial institution.

Do you want to have the assurance of obtaining a sum of money quickly to repair your broken-down vehicle, do work on your property or regularize your bills? In response to your urgent need for money, the credit simulation of the 100% digital platform is the first step to take to accelerate your projects quickly.

Good to know: Once your credit file has been accepted, you will receive the funds in your bank account in record time.

How to quickly get a personal loan with us?

Finally, you now know how peer-to-peer lending works. Do you want to be sure to find the best credit offer of the moment without a bank?

Money lending between individuals: 5 key points to remember

To finance his projects (car purchase, work in his real estate,...), peer-to-peer lending is the answer to the urgent need for money without a bank and simpler.

Credit between individuals is a money loan established between 2 natural persons or between a natural person and a professional investor via collaborative platforms specialized in loans.

Accessible to any borrower profile, peer-to-peer lending is an effective alternative to traditional bank lending.

Beyond a certain amount borrowed, it is necessary to file a tax return for a loan application between individuals. According to the Consumer Code, the declaration of sums of money borrowed from individual to individual requires the 2 parties to declare to the tax administration any loan between individuals of an amount greater than or equal to 5,000 euros.

By choosing to trust the digital platform, the borrower obtains a loan from a collaborative system with funds from professional investors.