How do private loans work?

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 […]

How do I write a loan agreement?

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.

Can I give an interest free loan to a relative?

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 […]

What to consider with loans involving friends and family?

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 […]

What are some considerations I should make before committing to a loan?

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. […]

Can I build an interest only loan?

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 […]