Borrowing money privately or a private loan

Borrowing money privately or a private loan means that you borrow money directly from someone without the intervention of an institution such as banks or other financial institutions. This has a number of advantages, but can also have a number of disadvantages.

Borrow without the intervention of financial institutions

When borrowing money privately, you borrow money from someone without involving financial institutions. This can be a solution if you cannot borrow money elsewhere because, for example, you have a negative BKR registration. The disadvantage of this is that you run the risk of borrowing too much money while you can no longer pay it back. So first think carefully about whether you can pay the loan before you take it out. There may also be other reasons why you want to take out a private (private) loan. If they are acquaintances of yours or family, the terms of the loan may be more favorable than taking out a loan from the bank.

How do you get a private loan?

You can borrow money from family, friends or acquaintances, but you can also obtain a private loan via the internet or the newspaper. If you do not have any acquaintances who are interested in lending money, you can, for example, look at advertisements in newspapers or on auction sites such as Marktplaats.

Advantages and disadvantages of a private loan


  • Interest-free or cheaper interest
  • No BKR assessment, which makes it possible to borrow money with a negative BKR registration.
  • Draw up the conditions together with the lender


  • Higher interest if you borrow money from strangers
  • If you borrow money from acquaintances, unpleasant situations can arise if one of the parties does not keep to the agreements.
  • A reliable and watertight contract must be drawn up.

Benefits for the lender

There can be several reasons for someone to lend their money. For example, the lender wants to help finance the private home of the person to whom he lends the money. It can be a great help in setting up an independent business. Want to give an advance on the inheritance or because you can achieve a higher return this way than on savings.

Loan agreement

It is wise to enter into a loan agreement together. This contains all the rights and obligations that both parties have and in the event of disagreement about the loan, you can fall back on the agreement. The loan agreement can be drawn up or ratified by a notary, but this is not mandatory. The agreement is also valid if it has been signed by both parties.

What does a loan agreement contain?

There are different ways to draw up a loan agreement. What is often included in a loan agreement is:

  • Who is involved in this agreement
  • What amount is borrowed
  • When does the loan commence?
  • Amount of interest
  • Is it a fixed or variable interest rate?
  • When and how payment is made
  • What happens if payment is not made on time
  • Can early repayment take place?
  • What conditions are attached to early repayment?
  • What happens in the event of a disagreement

The loan agreement must be signed with the name, date and place by both parties to be valid. To ensure that the agreement meets all legal requirements, you can have it drawn up or checked by a notary.