How does borrowing work

Legal question of the day:

One of my friends is financially in a tight spot. In order to overcome a dry spell, he wants € 1,000 from me. How can I cover myself so that I can get the money back?


A popular saying goes that friendship ends when there is money. That doesn't have to be the case, of course. However, if you want to help a good friend out of a predicament, you should keep a few things in mind when lending money. Most importantly, a short one written contract put on. So nobody can later claim that the money either did not flow or was given as a gift.

Write down your name and address as the lender. Your friend is named as the borrower with address. Write in the contract what amount should go to your friend. If you want, you can also agree on an interest rate. Or you can agree that the money will be loaned out interest-free.

What is important is the handover of the money in theContract called a loan becomes. Alternatively, you can write that you are loaning or borrowing the money to your friend. The only thing that should be clear from the wording is that you do not want to give him the money.

In order for the contract to have the desired evidential value, you must have the Document the transfer of the money. If you want to pay him the amount later, ask for a receipt. Or keep the transfer slip with which you sent the money on its way. Ultimately, the contract should be signed by both parties.

If you have not agreed a fixed repayment date in the contract, you must terminate the contract in due course. The notice period is 3 months. Of course, even such a written agreement does not guarantee that you will ever see your money again. You have a good chance of winning a lawsuit in court. But if your friend is penniless, stick to the outstanding claim as well as the Litigation costs to sit.

A Right of withdrawal (similar to banks) you do not have to record. Because private loans are not consumer loans within the meaning of § 491 ff. German Civil Code (BGB). It is also perfectly legal to lend money privately. But ask of your friend Interest, you need this in your Income tax return specify.