Document background
The Personal Loan Between Friends Contract is designed for situations where individuals wish to formalize a lending arrangement with someone they know personally, while ensuring legal compliance under Belgian law. This document becomes necessary when friends agree to a loan that needs to be properly documented for legal certainty and potential tax purposes. It includes essential elements required by the Belgian Civil Code, such as clear identification of parties, specific loan amount, repayment schedule, and any interest arrangements. While maintaining the informal nature of a friendly agreement, it provides important legal protections for both parties and can be crucial for avoiding future misunderstandings or disputes. The document is particularly relevant in Belgium where private lending must comply with specific civil law requirements and may need to be reported for tax purposes above certain thresholds.
