An interest-free loan between private individuals may not provide for the payment of an interest rate, but your contract must be drawn up according to precise indications: the risk is in fact that the Inland Revenue believes that it is a suspected undeclared income, on which the payment of penalties could also be pending. Despite this danger, in times of economic difficulty or when you have immediate liquidity problems, contacting family members or trusted individuals could be an easy solution to obtain financing, if you don’t want to or can’t (see the case bad payers) turn to traditional credit institutions, such as banks.
Unlike a personal loan, the non-interest-bearing loan is in fact easier to obtain
First of all, we are talking to people with whom we are connected by a family relationship or trust, who are available to help in a moment of difficulty. Furthermore, no particular guarantees should be presented, nor should an interest rate be paid: for this reason the loan is called “non-interest-bearing”, given that it should not guarantee a remuneration to those who provide it, as long as the latter does not make special requests .
Just to certify the conditions of the loan, it is better to draft a document that certifies the loan
Another important reason to carry out this operation is to make sure that the tax authorities do not consider that undeclared income , and therefore a penalty is paid: the anti-money laundering regulations that came into force in recent years have in fact tightened the controls on current accounts and suspicious revenue. If there is no documentation to attest that it is a loan, you really risk incurring the negative attention of the Revenue Agency. It may however be sufficient that the loan constitutes an occasional payment and is made through a transfer to a current account with very clear reasons.
Otherwise, the solution to avoid any problem with the non-interest-bearing loan between private individuals is to draw up a private document at the time of disbursement. The document must contain the personal data of the contracting parties, their tax identification number, the repayment terms and repayment deadlines, the purpose of the loan and any other clauses envisaged between the parties, such as penalties for late payment or interest. This document must be signed on each page and show a certain date: the stamp of any Post Office may suffice. The private writing must then be registered with the Agency (with relative payment of the registration tax) or exchanged between the parties by registered letter with return receipt.