A loan between individuals is legal when it stays occasional, is put in writing and, in France, is declared to the tax office above 5,000 €; anonymous offers found online, by contrast, are very often scams.
What person-to-person lending really covers
A loan between individuals links two private persons with no bank in between: a parent advancing a deposit, a friend helping out, a colleague funding a car. The French Civil Code treats it as a loan for consumption that must be repaid.
The banking monopoly and occasional lending
The French Monetary and Financial Code reserves regular credit operations to institutions authorised by the ACPR, the banking supervisor. An individual may therefore help a relative now and then, but anyone repeatedly offering loans to strangers is carrying on an illegal banking activity.
Written proof required above 1,500 euros
Article 1359 of the Civil Code requires written proof once the sum exceeds 1,500 €. An acknowledgement of debt signed by the borrower or a contract signed by both parties is enough; our template loan agreement between individuals details the useful clauses.
Formulaire 2062 and optional registration
According to impots.gouv, a loan above 5,000 € must be declared on formulaire 2062 (French tax form for declaring loans) with the tax return. Optional registration, charged 125 €, gives the contract a certain date enforceable against third parties, useful in an inheritance.
Freely agreed interest, capped by the usury rate
The parties choose an interest-free or interest-bearing loan. The rate nevertheless remains subject to the usury ceiling published each quarter by the Banque de France, and the interest received by the lender is added to their taxable investment income.
Authorised crowdfunding platforms
Since EU Regulation 2020/1503, platforms lending to businesses must be authorised as crowdfunding service providers (PSFP) by the AMF. Consumer lending between individuals through a website remains reserved to credit institutions, which is why genuine platforms for the general public are rare.
The typical fake lender scam
A Facebook profile or a classified ad promises 2 % interest, with no paperwork and no Banque de France credit check. After an official-looking contract, the victim must pay application, insurance or notary fees, then the lender vanishes with the money.
Spotting a serious lender before any exchange
A genuine lender never asks for payment before releasing the funds. Check their identity, search the name in the AMF and ACPR blacklists, and follow our method to vet a private lender before sending a single document.
Family, friends and disguised gifts
Between parents and children, a loan with no repayment schedule and no real repayments can be reclassified as a gift by the tax authorities. Traceable monthly transfers and an amortisation table attached to the contract prove that the debt is genuinely repayable.
Security options between two individuals
For a large amount, the lender can ask for a personal guarantee, a mortgage registered by a notary or a pledge. A notarised deed also carries enforceability, which avoids going through the judicial court if the borrower stops paying.
Reporting an online loan scam
In France, a fraudulent advert is reported on PHAROS, a dubious commercial practice on Signal Conso, and a loss of money leads to a complaint at the police station or gendarmerie, as detailed on our page on reporting a loan scam.
Our guides by topic, country and situation
The site covers car loans, property, students, borrowers listed on the FICP register and seniors, plus dozens of countries from Belgium to Japan. Each guide recalls the local regulator, the currency and the warning signs specific to that market.
Stages of a properly documented private loan
- Agree together on the amount, term, any interest rate and the first instalment date before any transfer.
- Draw up a signed acknowledgement of debt or contract, required as proof above 1,500 € under Article 1359 of the Civil Code.
- Pay the funds by named bank transfer rather than in cash so that an indisputable record exists.
- Declare the contract on formulaire 2062 when the capital lent exceeds 5,000 €, with the annual income tax return.
- Attach a precise schedule and repay by standing order to prove that the debt is really being honoured.
- Keep the contract, statements and correspondence until full repayment, then have the lender sign a final receipt.
Costs and tax to plan for in France
| Item | Order of magnitude | Note |
|---|---|---|
| Agreed interest rate | Free, from 0 % up to the usury rate | Quarterly Banque de France ceiling |
| Registration of the contract | 125 € (indicative) | Optional, gives a certain date |
| Notarised deed | Regulated fees and taxes | Useful for a large sum or a mortgage |
| Tax on interest received | 30 % flat-rate levy (indicative) | Option for the progressive scale |
| Fees demanded by a fake lender | Total loss | No legitimate lender charges before paying out |
Minimum file for a family or friendly loan
- Valid ID documents for both parties
- Signed loan agreement or acknowledgement of debt
- Bank details of the lender and the borrower
- Repayment schedule attached to the contract
- Formulaire 2062 if the loan exceeds 5,000 €
- Proof of the initial transfer of funds
- Proof of the borrower's income to assess their ability to repay
Common mistakes and scam signals
- Paying application, insurance or release fees before receiving the capital: this is the near-certain signature of an advance-fee scam.
- Lending to a relative with nothing in writing and no schedule, then having no proof before a judge or a tax office suspecting a gift.
- Trusting a lender met on Facebook, Instagram or WhatsApp who promises a very low rate without examining the borrower's finances.
- Sending a passport copy and bank details to a stranger, material later used to open accounts or take out credit in your name.
- Agreeing to pay a so-called notary, lawyer or bailiff by prepaid voucher, cryptocurrency or international money transfer.
Your questions about peer-to-peer lending
Do I always need a notary to lend money to a relative?
No. A private written agreement is legally sufficient. A notary becomes worthwhile for a large sum, a mortgage or an enforceable deed, but a real notary never demands payment on behalf of an unknown lender whom the borrower met online.
Must an interest-free loan between parents and children be declared?
Yes, once the capital exceeds 5,000 €, even when free, using formulaire 2062. Charging no interest is not forbidden, but real, documented repayment remains essential to avoid reclassification as a gift and the transfer duties that follow.
Can I lend money regularly to strangers?
No. Repeated credit operations for the public fall under the banking monopoly and require authorisation. A private person posting permanent loan offers on social media is either breaking the law or, far more often, a fraudster.
What can I do if the borrower stops repaying?
First send a formal notice by registered letter, then attempt conciliation. Failing that, the judicial court can order the borrower to pay on the basis of the signed contract; an enforceable notarised deed allows direct action through a judicial officer.
Can the site put me in touch with a lender?
No. Pretentrepersonnes.com is an independent information guide: it does not lend, forwards no requests and recommends no individual. For personalised advice, contact a notary, a lawyer or your local public finance centre.