What is the loan between individuals?

FIRST CITY BANK OF NEW YORK is the first platform in Switzerland for lending without bankers. We offer a credit from a collaborative system, but it is not a credit between individuals per se. Credit funds are collected from professional investors (individuals, companies, pension funds, insurers, foundations, etc.). Explanations on the specifics and mode of operation of the loan between individuals.

Credit between individuals: a new term

The loan or credit between individuals has been a "fashionable" term for a few years now. Some borrower profiles no longer trusting banks are now turning to the collaborative system to apply for credit.

In the United States, the loan between individuals has already existed since 2006 with the first global platform for credit between individuals: Lending Club. This company, founded by a Frenchman, was a real success from its launch. Almost ten years later, it claims to have granted more than 4 billion euros in loans.

Information and form of a loan agreement between individuals

The loan between individuals is governed in the same way as a "classic" credit. This inevitably implies the establishment of a contract between the borrower and the private lender. This writing can take the form:

  • Or a loan contract (form n ° 2062, to be signed by the borrower and the lender, who each keep a copy).
  • Or an acknowledgment of debt (to be drafted, dated and signed by the borrower; an original for the lender, another for the tax department, and a copy for the borrower). Beyond 1,500 euros, this document must be drawn up by a notary.

Said contract must mainly mention:

  • The names, surnames and full addresses of both parties;
  • The loan conditions (amount, duration, frequency of monthly repayments, interest rate).