# Personal loan to my partner



## Kalada (12 Dec 2019)

Hi,

I would like to agree a personal loan with my partner. No interests involved.

Is that possible without paying any taxes whatsoever? Do you know where I can find a template?

Thanks


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## Easel (12 Dec 2019)

How much is the loan for? What are the repayment terms?

Loaning money to partners is similar to loaning it to family members. There is a chance it may not be repaid and in that event any "agreement" will be very difficult to enforce.

There is very little up shot to mixing money and personal relationships. If it is possible to avoid this in a way that will not cause offence I would


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## lledlledlled (12 Dec 2019)

you can gift €3,000 to anyone per year, tax free. Assuming you trust your partner to repay you, this might be the way to go


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## Kalada (12 Dec 2019)

Easel said:


> How much is the loan for? What are the repayment terms?
> 
> Loaning money to partners is similar to loaning it to family members. There is a chance it may not be repaid and in that event any "agreement" will be very difficult to enforce.
> 
> There is very little up shot to mixing money and personal relationships. If it is possible to avoid this in a way that will not cause offence I would



It would be between 30-60k to be repaid in 4-5 years? Monthly payments flexible? Tbh, I don't know what is the best way to go.

I understand what you mean by not mixing money and personal relationships but if we want to avoid the involvement of any bank/solicitor.


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## lledlledlled (12 Dec 2019)

30-60k is a lot of money to loan a partner. I'm with Easel on this one now. Avoid if at all possible.
What is the money to be used for?
How would you rate your partner's ability to repay? Chance of default, losing job if economy nose-dives, etc? 
How stable is your relationship? If you guys were to split up, it might be difficult to retrieve the loan. 
How long are you guys together? 
Is your partner aware that you have 30-60k available that you could possibly loan?


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## Feemar5 (12 Dec 2019)

I don't see how you can avoid involving a bank as you will have to do a credit transfer or write a cheque.     It's a bad idea without some paperwork especially since repayments are flexible.


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## Setanta12 (12 Dec 2019)

Don't. Do. It. Without. A. Solicitor. Drawn-Up. Agreement.


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## Kalada (12 Dec 2019)

Thanks guys.

It makes sense. We will involve a solicitor. Do you know what is the paperwork's cost of such agreement? Do you know where I can get any template?

Thanks.


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## Purple (12 Dec 2019)

Kalada said:


> Do you know where I can get any template?


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## Laughahalla (14 Dec 2019)

Go down to the registry office and Marry your partner. It will cost you a couple of hundred euro. Then loan them what you like.

I wouldn't loan that amount unless I could afford to lose it. The relationship will turn toxic if you "loan" money. The relationship will change.


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## noproblem (14 Dec 2019)

Laughahalla said:


> Go down to the registry office and Marry your partner. It will cost you a couple of hundred euro. Then loan them what you like.
> 
> I wouldn't loan that amount unless I could afford to lose it. The relationship will turn toxic if you "loan" money. The relationship will change.



Don't know about getting married for money, but you're right in saying if there's a money loan the relationship will change.


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## Saavy99 (14 Dec 2019)

Kalada said:


> Thanks guys.
> 
> It makes sense. We will involve a solicitor. Do you know what is the paperwork's cost of such agreement? Do you know where I can get any template?
> 
> Thanks.



If you worried about the solicitors fees then you definitely shouldn't be lending money you can ill afford to lose.


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## peemac (16 Dec 2019)

Did it many years ago myself.

Herself is rubbish at finance. She had credit card debt, personal loan, overdraft and a good salary.

Bank would not consolidate. We were only a couple for about two years at the time. 

Drew up a standard loan document with a 3% interest (deposit rate at the time) and she paid it off over 4 years.

Once both parties know and understand that the transaction is totally independent of any relationship, then it should be fine. 

As deposit rates are currently zero, a zero interest rate would be appropriate. Hence no loss or gain.


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## Thirsty (17 Dec 2019)

60k is a big chunk to lend without security.

Unless you are comfortable with the possibility that you might never get it back, don't do it.

Incidentally, the assumption is being made that this is a personal relationship, if a business partner there are different options.


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