A money loan agreement is one thing that transfers the ownership of another set amount of money to be repaid in a given manner and time. For its effective conclusion, only a consistent statement by both parties is needed, sometimes even oral.
The loan agreement is one of the most popular and simple procedures classified as credit activities. Sometimes it is concluded even orally, although in the event that its value exceeds $ 1,000, a written form is indicated, mainly for evidence purposes, in the event of breach of contract by one of the parties. The receipt of the money can be treated as evidence of the conclusion of the contract.
Loan agreement – template
The loan agreement templates are available on numerous websites, but the transaction can also be documented on a regular piece of paper. However, the right elements should be found there:
- date and place of conclusion of the contract;
- specification of who is the lender and who is the borrower and – if they are natural persons – providing their personal data (when one of the parties conducts business activity, the contract must include the NIP, in the case of legal persons also the entry number in the National Court Register);
- accurate description of the subject of the contract (both money and things);
- conditions for repayment of the loan (repayment in installments, interest or return is to be in cash or by bank transfer);
- conditions for terminating the contract;
- signatures of both parties.
Family loan agreement
A family loan contract is quite advantageous because the parties are entitled to a tax exemption, which should be paid in other situations of this type (eg a 2% tax on a loan loan agreement).
A loan between spouses, siblings, descendants (children, grandchildren), ascendants (parents, grandparents) or stepchildren does not require documentation at the tax office, if it does not exceed $ 9,637. If it is higher, to avoid tax, you must submit the PCC-3 declaration to the competent tax authority within 14 days from the date of the act.
Loan agreement without interest
When concluding a money loan agreement, you must specify the conditions for its return. Although in terms of the Civil Code this type of contract is free of charge, the parties may agree on any form of payment. The most popular are interest. The maximum may not exceed twice the amount of statutory interest (equal to the sum of the NBP reference rate and 3.5 percentage points).
If the debtor is late in providing the cash benefit, the creditor may demand interest for the delay (if their rate was not included in the contract, it is set as the sum of the NBP reference rate and 5.5 percentage points).