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FAQ

I’M NEW TO CREDI / GENERAL (20)

Credi is a web-based app specially designed to allow you to create, manage and automate your personal lending with friends, family members and business acquaintances. Credi does not lend money, it is simply the software that helps you manage and formalise your lending and borrowing with another party. Credi is designed and commercialised by Credi Pty Ltd Australia (Credi).

At Credi, we have a clear and simple fee structure. All loans on the Credi platform under $2000 AUD are free of charge. For loans over $2000 AUD, Credi charges a one-off fee of $88 AUD including GST.

No, Credi Pty Ltd is not a money lending company. At Credi, we only provide you with the Credi platform to facilitate the management of your loan information, formalise it, track repayments and record updates.

Treat a personal loan from a friend or family member like you would any other loan. You must be prepared to meet all of your obligations on time until the loan is paid in full. A private loan just means a loan from someone other than a bank or lending institution, and the agreement is drawn up between the two of you. The fact that you may know your lender/borrow well should not change the responsibilities associated with any loans. A loan agreement and repayment schedule should be drawn up to avoid any misunderstandings or conflict.

Credi is offered to over 50 countries around the world. Credi.com calculates loans in the currency of your selected country and the Credi loan agreement is governed by the law in the country that the borrower resides in. This may mean that Credi is applicable and usable by you.

While a loan agreement between family and friends may not be necessarily a legal document, it does protect both sides if the matter goes to court.

Formalising a loan agreement just means putting in writing something that may have been talked about. This is to clearly identify the relevant interest rates, loan terms and conditions.

Before committing to a loan, think about how realistic the repayment schedule for the recipient of the loan is. Consider multiple ways to safeguard the loan from becoming embroiled in emotions if loan is from a known party. Ultimately, both parties should be aware of the obligations and responsibilities associated with taking on the loan. It is wise to draw up a contract between parties to protect against any disagreement.

A loan agreement should describe the loan terms, terms of repayments, interest, what happens if the borrower misses a repayment, the relevant dates, and persons involved. Each person involved should have a copy of the loan agreement, or have it electronically. This written agreement is legally binding.

Your loan is subject to the lender’s local tax and lending laws, as well as the borrower’s local tax and lending laws.

Credi does not count towards your credit score, but that may change in the future, so treat a loan through Credi as you would any other loan.

Credi is not a lending marketplace and does not connect users to lenders. Credi is simply a platform that a lender and borrower use to facilitate their loan, making the process easier to manage and formalised all in one place.

Credi allows you to build your loan, varying terms such as loan amount, term, interest rate, repayments using the loan builder functionality until they are right for you. Then you personalise the loan request and send it to one or more people, accept, negotiate or reject offers and once two parties agree, a loan agreement is e-signed. Communications and alerts will advise of forthcoming repayments on the due date and the repayment will be recorded or amended and the loan record updated.

The Borrower and Lender deal directly with each other, setting up the loan parameters, negotiating and agreeing on the document.

Credi does not guarantee repayment of loans. Lenders fund loans at their own risk and goodwill to help out a friend, family member or business acquaintance.

Yes, you can! The way to build an interest only loan in the Credi platform is to enter the same amount in the fields ‘loan amount’ and select ‘balloon amount’, as well as entering your interest rate of course. The periodic repayment schedule will then reflect interest only payments with the final payment being the loan principal.

While you can give an interest free loan to a family member, financial planners don’t endorse this practice. To minimise pain and conflict, financial planners advise charging interest on the loan, treating it like any other loan. A minimum amount of interest for example, is an amount that will ensure that repayments keep up with inflation. Putting together a contract such as Credi’s loan agreement that leaves out any room for assumptions. Giving an interest free loan to a relative or friend might also fall under the tax definition of a ‘gift’, which has its own rules and regulations you would have to check for your locality.

When considering committing to giving or receiving the loan, think about how you or your friend/relative will pay back the money. Consider the realities of your relationship with the person and ways can you safeguard yourself from anything going wrong in relation to money. Do you have a loan contract and a reliable way to track repayments without emotions being entangled?

The interest rate for a personal loan to give should be determined by the length of repayment and any national government approved interest rates for family loans. The annual limit for tax-free gifts to family members in Australia is $14000, so especially when you loan is beyond that, should you charge interest.

Credi is a web-based application accessible from any device. There is no download required at all.

Yes, Credi works across all devices: desktop, laptop, tablets and mobile.

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