On Réunion Island, a peer-to-peer loan follows French civil law and is agreed in euros: you need a signed document, a traceable transfer, a tax declaration above €5,000 and never any fees paid upfront to a stranger.
The 974, a department where the Civil Code applies
As an overseas department in the Indian Ocean, Réunion is fully subject to French law. Money lending between individuals is governed by the Civil Code, and any interest rate must not exceed the usury rate published every quarter.
The IEDOM, the Banque de France's local arm
The Institut d'émission des départements d'outre-mer in Saint-Denis carries out the Banque de France's tasks locally: FICP register checks, the right to a bank account and the over-indebtedness commission secretariat. Its services to individuals are free and it never lends money.
Formulaire 2062: a step for the borrower
Once the sum lent exceeds €5,000, the borrower on Réunion reports the contract to the tax authority using formulaire 2062 (French tax form for declaring loans), attached to their income tax return. The lender declares any interest received, which is taxed as investment income.
A certain date thanks to €125 registration
Registering an acknowledgement of debt costs a fixed duty of €125 and gives it a certain date. For a property purchase or a large sum, a notary on the island can draw up an authentic deed, directly enforceable if repayments stop.
Crowdlending from the Indian Ocean: check AMF authorisation
Crowdlending platforms accessible from the island must hold the European crowdfunding service provider authorisation, issued in France by the AMF. Before investing savings there, a resident of Saint-Benoît checks the regulator's register and its blacklists.
Dock dues, freight and household cash needs
The octroi de mer, a local import duty, plus sea freight and distance raise prices for cars, materials and equipment. A household may then need a private loan to replace a vehicle, repair a roof after a cyclone or fund back-to-school costs in the Hauts.
Family support and the diaspora in mainland France
Many Réunionnais living in mainland France support a relative back home. A transfer between two French banks is simple, but a family advance is better written, dated and quantified; our page on the loan between friends and family explains this precaution.
Time difference and rushed payments, fertile ground for scammers
Two hours ahead of Paris in summer and three in winter, Réunion residents often receive messages from fake lenders at odd hours. These scammers demand immediate processing fees, sometimes in prepaid vouchers or cryptocurrency, before any promised payout.
Fake notaries and fake bailiffs in online exchanges
A common scenario features a so-called notary in charge of releasing the funds against payment. A genuine notarial office on Réunion never asks for an advance by money order or cryptocurrency; our page on the fake notary loan scam details this scheme.
Complaints, PHAROS and Signal Conso from the island
The victim files a complaint at the police station or gendarmerie, reports fraudulent ads on PHAROS and describes the practice on Signal Conso. Keeping conversations, phone numbers, IBANs supplied and proof of payment helps both investigators and the bank.
Over-indebtedness: a free file rather than one more loan
A household already unable to meet its instalments solves nothing with a new private loan. It can file an over-indebtedness application free of charge, processed by the IEDOM for the departmental commission, which can impose rescheduling or even partial debt write-off.
Access to justice and town-by-town guides
The departmental council for access to justice, ADIL 974 for housing and consumer associations guide residents free of charge. Our pages on private lending in Saint-Denis and in Le Tampon look more closely at each town's realities.
Steps for a well-structured private loan on Réunion
- Meet the other party in person, in Saint-Denis, Saint-Pierre or elsewhere on the island, and check their ID rather than trusting an online profile.
- Draft a loan contract or acknowledgement of debt stating the amount in euros, the term, the rate and the date of each instalment.
- Make sure the agreed rate stays below the quarterly usury rate applicable to that loan category.
- Pay the funds only by bank transfer, ruling out cash, prepaid vouchers, anonymous money transfers and cryptocurrency.
- Attach formulaire 2062 to the borrower's income tax return when the sum exceeds €5,000.
- Consider €125 registration or a notarial deed for a large amount, then keep every proof of repayment.
What a peer-to-peer loan costs in the 974
| Item | Amount in euros | Good to know |
|---|---|---|
| Interest set by the parties | Free, zero rate possible | Never exceed the current usury rate |
| Registration of a private deed | €125 (indicative) | Optional, gives the loan a certain date |
| Authentic deed by a Réunion notary | According to fees and quote | Recommended for a large sum |
| Declaration on formulaire 2062 | No charge | Filed by the borrower above €5,000 |
| Tax on interest received | Varies with circumstances | Declared by the lender with their income |
| Fees demanded by a fake lender | Money usually lost | A sign of fraud, report it immediately |
File to prepare before signing
- Valid identity card or passport of the lender and the borrower
- Proof of address on Réunion or in mainland France
- Borrower's last three payslips or tax notice
- Loan contract or acknowledgement of debt signed by both parties
- Bank details (RIB) of each account used
- Formulaire 2062 if the principal exceeds €5,000
- Repayment schedule and proof of the transfer of funds
Common traps and warning signs on Réunion
- Paying insurance, processing or transfer fees to a lender met online before receiving a single euro in your account.
- Trusting a so-called European notary who demands a security deposit by international transfer to release a promised loan.
- Advancing several thousand euros to a neighbour or cousin with nothing in writing, which makes any recovery much harder.
- Agreeing to pay with prepaid cards, vouchers or cryptocurrency at the request of someone you have never met.
- Sending a photo of your bank card, your access codes or your tax notice to a profile found in a local Facebook group.
Your questions on private lending on Réunion
Is the usury rate the same on Réunion as in Paris?
Yes. The usury thresholds published by the Banque de France apply across the whole national territory, overseas departments included. A lender who exceeds this ceiling faces criminal penalties and may have to refund the excessive interest.
Can the IEDOM vet a private lender for me?
No. The IEDOM does not supervise individuals who lend money. It does, however, let anyone check their own FICP listing and it receives over-indebtedness applications. For a platform, the AMF register and the ORIAS register are the right places to look.
Must a loan sent from Lyon to a relative in Saint-Paul be declared?
Yes, above €5,000 the borrower living on Réunion attaches formulaire 2062 to their income tax return. The fact that the lender lives in mainland France changes nothing, since both are under the same French tax authority.
Where can I get free legal advice on the island?
The points-justice of the departmental council for access to justice, free lawyer consultations offered by the bar and approved consumer associations all receive the public. For a complex arrangement or a property guarantee, a notary or lawyer remains essential.