In Algeria, a loan between private individuals is possible as a written civil loan in dinars, but the Civil Code makes such loans interest-free in principle, while regular lending activity is reserved for banks and financial institutions licensed by the Banque d'Algérie.
The Algerian framework: civil loans and the banking monopoly
Algerian law distinguishes an occasional loan granted by a relative, a neighbour or a colleague, governed by the Civil Code, from regular lending activity, which requires a licence from the Banque d'Algérie under the monetary and banking law of the country.
Article 454 of the Civil Code and interest between individuals
Article 454 of the Algerian Civil Code provides that a loan between individuals is granted without interest, and any clause to the contrary is void. A private lender demanding a monthly rate in dinars invites a dispute; ask a lawyer how the text applies.
Banks, Islamic finance and ANGEM microcredit
Before looking for a private lender, compare the regulated options: public and private banks, Islamic finance windows open since 2020 offering murabaha, ANGEM microcredit for a small business, and the ANADE and CNAC schemes for people who want to set up a company.
Crowdfunding supervised by the COSOB
Algerian crowdfunding is supervised by the COSOB, the securities regulator, whose Regulation 23-01 of April 2023 created the status of crowdfunding investment adviser. These platforms mainly serve start-ups and SMEs raising capital, not personal credit between two private individuals.
Drafting a valid acknowledgement of debt
A dated, signed document remains the best protection: full identity of both parties, the amount in dinars written in figures and in words, the handover date, the schedule and repayment terms. Our detailed template for a loan agreement between individuals helps you forget nothing.
Notarial deeds and the Chamber of Notaries
For a large sum, an authentic deed drawn up by a notary registered with the Chambre nationale des notaires gives a certain date and stronger evidential weight. Fees and registration duties vary with the deed, so ask the office for a written quote before signing.
The diaspora, euros and the parallel currency market
Many family loans mix euros sent by relatives living in France with dinars handed over in Algeria. Informal exchange, such as at Square Port-Saïd in Algiers, escapes foreign exchange regulations, so keep a bank record of every sum you transfer between the two countries.
Fraud targeting CCP and BaridiMob account holders
Fraudsters target Algérie Poste CCP accounts: they ask for the Edahabia card PIN, a code received by text message or a screenshot of the BaridiMob app, then empty the account. No genuine lender ever needs your codes in order to send you money.
Fake lenders on Facebook and classified ad groups
Facebook pages promise fast loans in dinars or euros in exchange for application, insurance or stamp duty fees. This advance-fee pattern is described in our report on the social media loan scam; never pay anything before the money has actually reached your account.
Filing a complaint: DGSN, gendarmerie and public prosecutor
A victim can file a complaint at a police station, with the national gendarmerie or directly with the public prosecutor of the competent court. The DGSN, the national police, has cybercrime units; keep the messages, phone numbers and receipts as evidence for investigators.
Recovering an unpaid debt through the courts
If a loan is unpaid, a formal written notice usually precedes an action in the civil section of the court. Without an acknowledgement of debt or proof of transfer, the lender will struggle to prove the claim; a lawyer can assess the chances and timescales.
Tax questions and guides to Algerian cities
An interest-free loan does not in principle create taxable income, but a disguised gift or interest received may raise questions; check with the Direction générale des impôts. Our guides to the peer-to-peer loan in Oran and to Algiers describe local practices.
Steps to a secure private loan in Algeria
- Check the identity of the lender or borrower with their biometric national identity card and an address you can confirm.
- Set the amount in dinars, the term and the schedule, keeping in mind the interest-free principle laid down by the Civil Code.
- Draft and sign an acknowledgement of debt in two copies, or have a notary draw up a deed for large amounts.
- Pay the funds by bank or postal transfer into an account in the borrower's name, never in cash without a signed receipt.
- Record every repayment received with its date and transaction reference, and give the borrower a receipt each time.
- If an online offer looks doubtful, refuse any upfront payment and report the advert to the police.
Costs of a private loan in Algeria (indicative)
| Item | What you need to know | Benchmark |
|---|---|---|
| Interest between individuals | Interest-free principle under Article 454 of the Civil Code | 0 DA interest, to be confirmed by a legal adviser |
| Notarial deed | Notary fees and registration duties | Varies with the amount; ask for an indicative quote |
| Islamic bank financing | Profit margin set by the bank at signature | According to each licensed bank's price list |
| Bank or CCP transfer | Account maintenance and transfer fees | Low, according to the institution's tariff |
| Fees demanded by a fake lender | Application, insurance, stamp or release fees claimed upfront | Total loss; no such fee is ever legitimate |
File to prepare before the dinars are paid out
- Biometric national identity card or passport of both parties
- Proof of income: payslip, employment certificate or pension statement
- Acknowledgement of debt or loan agreement signed in two copies
- Bank details or CCP account number of the borrower
- Proof of the initial transfer of funds
- Dated and initialled repayment schedule
Mistakes and warning signs in Algeria
- Paying application or tax stamp fees to an unknown lender before any money arrives, often via Flexy, BaridiMob or postal order.
- Giving the PIN of your Edahabia card or a confirmation code received by text message to a so-called financial adviser.
- Handing over dinars in cash in exchange for a mere verbal promise, with no acknowledgement of debt and no witness.
- Accepting a high monthly interest rate imposed by an informal lender, when the Civil Code makes loans between individuals interest-free.
- Believing that a fake foreign notary must collect a deposit before releasing a loan in euros.
Common questions about private loans in Algeria
Can a private individual lend with interest in Algeria?
Article 454 of the Algerian Civil Code provides that a loan between individuals is granted without interest and that any contrary clause is void. A lender who charges interest may be unable to enforce it in court. Have your situation checked by a lawyer or a notary.
Are there licensed peer-to-peer lending platforms in Algeria?
The COSOB framework covers crowdfunding of projects through crowdfunding investment advisers, mainly for start-ups and SMEs. It does not amount to a personal credit website between individuals. Be wary of sites claiming otherwise without displaying a licence you can verify.
Is it compulsory to go through an Algerian notary?
No, a private acknowledgement of debt can be enough between relatives. A notarial deed becomes worthwhile for a large amount, a loan secured on property or when the parties do not know each other well, because it provides a certain date and better proof.
What should I do if a relative in France wants to lend me euros?
Choose a traceable transfer through an official banking channel and write a document stating the currency and the amount. The exchange rules of the Banque d'Algérie apply, and our report on fraudulent international transfers also describes the most frequent traps.
Where can I report a loan scam in Algeria?
File a complaint at the police station, the gendarmerie brigade or with the public prosecutor. Attach screenshots, phone numbers, Facebook profiles and payment receipts. Also warn your bank or Algérie Poste to try to block any transactions still being processed.