Today, obtaining a loan without accruing interest from a bank seems impossible in most cases. However, there are other ways to raise funds, namely loans between legal entities and individuals. In such cases, an interest-free loan is provided, all the terms of which are set out in detail in the agreement of the parties.
In this article we offer a free download of a sample interest-free loan agreement concluded between a legal entity and an individual. The download form is located at the bottom of the article (word).
According to current legislation, a loan agreement in the Russian Federation is an agreement that regulates the legal relations arising between the borrower and the lender, and in addition transfers the subject of the loan directly to the person who is the borrower. The latter, in turn, assumes the obligation to return what was received in full no later than the period strictly specified and agreed upon by the parties.
If an interest-free loan agreement needs to be concluded between individuals, a sample agreement can be downloaded here. An interest-free loan from the founder is formalized by such an agreement.
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interest-free loan agreement concluded between: individuals - sample; legal entities - sample.
Filling out a loan agreement between individuals
A loan agreement between individuals must be very detailed so that its arbitrary or incorrect interpretation is excluded. Otherwise, disputes will have to be resolved in court and it will be impossible to predict the outcome of the proceedings. Therefore, the most important points in the content of the contract should be determined:
- A correctly executed agreement will contain an indication of the date of signing, place of preparation and information about the parties;
- The agreement must include information about the transfer of money to the borrower. If third parties were present, they must be indicated. All participants in the action must sign copies of the documents;
- The agreement contains information about the loan amount, interest and repayment period. Detailed reflection of such information in the contract is very important. After all, this is what will eliminate disputes in the future. The detail of the contract becomes the best protection of the interests of both parties;
- The contract must provide for early termination conditions. For example, at the initiative of the borrower in connection with early repayment of the loan or at the initiative of the lender due to the borrower’s failure to fulfill its obligations.
Such an agreement is a standard form. It is printed, after which the form itself is filled out. It is important to follow the template for filling out the contract, but also not to forget to include the specifics of the current transaction.
Taxation
The lender who provides an interest-free loan does not receive any material benefit. When the settlement date arrives, he only receives his money back, and this cannot be considered income.
In this situation, you do not need to pay any taxes (regardless of who the lender is - an individual or a legal entity).
As for the borrower, there is not a big nuance here. If the borrower is a legal entity, taxes are again calculated.
If the debtor is an ordinary citizen, you will have to pay personal income tax (NDFL) for the benefits received from saving on interest (Article 212 of the Tax Code of the Russian Federation).
The exception is when an interest-free loan is issued for the construction or purchase of housing (the borrower must have the right to receive a property tax deduction).
Obligations of the borrower to repay the loan amount
A loan agreement between individuals imposes certain obligations on them. The second part of the Civil Code of the Russian Federation in Article 810 states that the borrower undertakes to repay the borrowed money. Moreover, do this completely, in the allotted time and in the order prescribed in advance.
All these conditions are specified in the loan agreement. But there are times when contracts do not specify the exact terms for repayment of the borrowed amount. In such a situation, the law also has regulations. In particular, the money must be returned within 30 days. The countdown should be carried out from the moment the lender demands his funds back, provided that the loan agreement between individuals does not provide for other options.
If the loan is interest-free, it can be repaid early in full or in part. But only if the loan agreement between individuals, drawn up on the basis of the transaction in question, does not imply other conditions.
You can fully or partially repay the loan ahead of schedule (if it was taken out with interest) if you notify the lender about this at least a month before depositing the funds. This applies to loans taken for business, personal, family or household needs. The documents may specify other deadlines for providing the lender with notification that the borrower plans to return the borrowed funds to him if he does so ahead of schedule.
A money loan agreement between individuals, where a transaction for providing money at interest is agreed upon, may not be taken into account if the lender has given his official permission to repay the loan outside of the deadlines. Although the consent in question may be provided in a contract. As soon as the money is transferred to the lender, the debt will be closed. Typically, the funds should be deposited into a bank account - this will make it much easier to confirm the fact of the transaction. At the same time, early return of money should not contradict the law.
Sample interest-free loan agreement
The type of contract under consideration is drawn up with the participation of two parties:
- Lender.
- Borrower.
Under the terms of the agreement, the lender transfers to the other party a certain amount of money or valuables, free of charge.
The borrower undertakes to repay the loan within the agreed time frame. If the document does not provide for a repayment period, then by law, the lender must notify the borrower 30 calendar days before the repayment date.
According to general rules, the agreement must contain a description of the transaction, the responsibilities of the parties, rights and obligations, amount, and other conditions as agreed by the parties.
Additional documents that play the role of an application may include debt repayment schedules, additional agreements, protocols of disagreements, etc.
Between the founder and the organization
Receiving a loan from the founder means that funds are issued:
| To solve the economic problems of the organization | and for the purpose of financing new business projects |
| Providing financial assistance | due to personal relationships between the heads of organizations, other goals at the discretion of the founder |
This type of loan is possible if such a point is reflected in the text of the agreement. If this is not provided, the loan may be considered interest-bearing, taking into account the refinancing rate of the Central Bank of the Russian Federation. This clearly entails tax consequences.
The provision of funds is carried out on the principle of remuneration; the organization is obliged to repay the debt within the period established by the agreement. The agreement becomes legally binding from the moment the funds are transferred to the borrowing organization. The moment of transfer of the loan is reflected in the receipt, indicating the date, amount of funds, information about the parties to the agreement.
When drawing up a contract, the following points are indicated:
| The text indicates the date and place of its composition | and data of the parties to the transaction, with their full decryption |
| The essential terms of the contract are prescribed, indicating its subject, amount, terms | mandatory emphasis is placed on the fact that the loan is interest-free |
| The rights and obligations of the parties are indicated | and the method of debt repayment |
| Dispute Resolution Options | if they arise, the procedure for terminating the agreement, and the document will be completed by the details and signatures of the parties |
Between legal entities
An interest-free loan agreement between legal entities is a fairly common transaction. Most often, companies that have partnerships resort to this type of financing. There are even special companies providing services for issuing such loans.
Drawing up an agreement between legal entities does not have certain distinctive points from the standard sample.
Therefore, it includes standard conditions:
| Date and place of compilation | information about the parties entering into the transaction (full names of organizations, names of founders, etc.) |
| Subject of the agreement | the condition that the funds are transferred under an interest-free loan (this condition is better separated into a separate clause) |
| Duration for which the loan is transferred | and the method of debt repayment |
| Rights, responsibilities | and responsibility of the parties, details and signatures of the parties to the agreement |
Thus, a standard loan agreement concluded between two legal entities becomes interest-free if it includes a condition that the funds are transferred free of charge.
Between a legal and physical person
When doing business in modern economic situations, many entrepreneurs are faced with the problem of finding additional financial resources. As an alternative to bank lending, you can take out a loan from an individual.
An interest-free loan agreement is drawn up on the basis of the civil legislation of the Russian Federation and contains general information that is standard for this type of document.
One of the terms of the agreement will be an indication that the individual is transferring funds or other material things of value to the legal entity.
As in other cases of interest-free loans, such an agreement must necessarily contain a condition on the gratuitous transfer of funds.
To learn about loan repayment (repayment) to an individual, read the article: loan repayment (repayment) in 2021. How to get a loan on a card without refusal online, read here.
To a company employee
These types of loans are issued on general terms and conditions provided for by the current legislation of the Russian Federation. According to the established rules, a legal entity has the right to enter into loan agreements with employees officially working at the enterprise. When drawing up an agreement, it is important to state the condition that funds are issued without interest.
Most often, when issuing such a loan, the following requirements may be presented to the employee:
| Work experience in the company | for at least three years, and the amount issued is determined privately |
| The employee must submit a corresponding application addressed to the manager | It is better to indicate in the application the purpose of receiving the loan |
| Employee age | from 21 to 60 years |
If such a loan is issued to an employee, the material entry will be calculated, from which personal income tax will be withheld. The postings may indicate how the loan will be repaid, that is, with property or cash, depending on what type was originally envisaged.
The issuance of the type in question is carried out under an agreement, the form and content of which is stipulated by the general provisions of the civil legislation of the Russian Federation - Article 808.
Confirmation of the transfer of funds from the organization to the employee will be a receipt. The loan is issued upon receipt of a corresponding application from the employee.
An agreement with an employee for an interest-free loan must include the following information:
- the amount of funds issued;
- the period for which they are transferred;
- conditions for free use of funds.
After signing the main agreement, an order is prepared to issue a loan to the employee.
Between individuals
Individuals who decide to enter into an interest-free loan agreement must discuss the amount of the transferred amount, the timing and procedure for its return. All essential conditions must be spelled out in detail, especially regarding the mention of the gratuitous nature of the transaction.
This type of agreement can be concluded only by legally capable individuals who have reached the age of majority and have identification documents.
The document is drawn up in two copies and includes:
| Personal data of the parties to the transaction | date, place of conclusion of the agreement |
| Subject of the transaction, amount of transferred amount | term, procedure for its return, as well as the condition of transferring funds free of charge |
| Rights and obligations of the parties | their responsibilities, final provisions (force majeure, dispute resolution, etc.), signatures and details of the parties |
When transferring funds, a receipt is issued, which will serve as proof of this fact.
Consequences of violation by the borrower of the terms of the agreement
You should not violate the terms of a loan repayment agreement between individuals, as this is fraught with various unpleasant consequences. If a person does not want to return the money within the prescribed time frame, additional interest is imposed on the debt, the amount of which is specified in the law (Clause 1 of Article 395 of the Civil Code of the Russian Federation). They will grow from the moment when the funds were supposed to arrive until the moment when the money does arrive.
Sometimes a money loan agreement between individuals provides for the condition of repaying the debt in installments. If a person fails to repay the next amount on time, the lender has every right to demand that the debtor return the entire remaining amount, including interest on the use of the loan that has accumulated during the period before its repayment.
Parties entering into a gratuitous loan agreement
The agreement can be concluded in various forms between individuals and legal entities. Both individual citizens among themselves, and in cooperation with companies, can enter into mutually beneficial gratuitous loan agreements.
Due to the fact that firms and individual citizens can take part in the agreement, there are no certain strict canons in drawing up an interest-free loan agreement. The point is that certain points must be present:
- the gratuitous loan agreement is numbered and the date of conclusion is indicated;
- information is provided about the parties entering into the agreement;
- the subject of the gratuitous loan agreement indicates the amount that appears in the agreement;
- the obligations and rights of each party to the agreement are listed;
- the method by which the borrower returns the funds received is prescribed - in parts or in full, early repayment of obligations;
- responsibility of the parties to comply with the gratuitous loan agreement, circumstances that may affect the agreement.
If necessary, the gratuitous loan agreement includes a clause on maintaining the confidentiality of each of the parties during the validity period and at the end of the agreement. In case of conflict situations, the parties are guided by special clauses of the agreement. If a situation arises when it is not possible to resolve the conflict on their own, the lender and borrower can resort to outside services.
Dispute Resolution
Often, a loan agreement between individuals provokes many disputes arising on its basis. To avoid the most acute conflicts, it is advisable for the parties to agree in advance on all possible nuances, interpretations and conditions for the implementation of certain instructions.
If a dispute does arise, it is desirable that it be resolved peacefully. Thus, in case of dissatisfaction, the parties can simply send each other claims and close controversial issues without court intervention.
The lender and borrower must think through every nuance of cooperation and include it in the interest-bearing loan agreement between individuals or its interest-free analogue. This especially applies to the timing of when a response to a submitted claim should be received. You also need to discuss the procedure under what circumstances to go to court if the conflict cannot be resolved peacefully. Disputes of this type are resolved in the Arbitration Court at the place of residence of the defendant.
Features of legal regulation of agreements
Legally, the contract comes into force at the moment of its conclusion.
In addition, the emergence of rights and obligations under an interest-free loan agreement is tied to the fact of transfer of the loan subject.
In law enforcement practice, a loan agreement without interest is quite often encountered, relating to obligations that are based not on the transfer of funds or property, but on installment or deferred payment for a consignment of goods received,
If the agreement on installment or deferred payment for goods does not indicate the absence of interest for the use of funds, then the loan agreement is considered interest-bearing, regardless of whether there is a direct indication of the loan rate or not. (Read about the features of an interest-bearing loan agreement in this article).
Conditions for changing and early termination of the loan agreement
If you need to terminate an interest-free loan agreement between individuals earlier, this can be done in the same way as an interest-bearing agreement. All the subtleties of this process are spelled out in Articles 450 and 452 of the Civil Code of the Russian Federation, where there are conditions not only for terminating, but also for changing the contract.
If changes are made to the document, they must be specified in an additional agreement. It is attached to the main contract and becomes an integral part of it.
In case of any concerns, the parties can individually stipulate early termination of the contract, and under what conditions it can occur. Typically, such a measure is introduced only by agreement of the parties. If there is no such agreement, the contract can be terminated early solely for the reasons specified in Article 450 of the Civil Code of the Russian Federation.
Comments on the document “Loan Agreement (interest-free)”
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What are the conditions under which a gratuitous loan agreement is drawn up?
It is mandatory that the parties to the agreement must reach the age of majority - this applies to the participation of individuals. Otherwise there are no special requirements.
The concluded gratuitous loan agreement must be submitted in writing, in two copies, each of which is given to one of the parties to the agreement. In a situation where we are talking about the subject of the contract, the value of which does not exceed one thousand rubles, an agreement can be reached without writing, even if the parties are individuals. One of the consequences of failure to repay part of the loan within the agreed period may be the forced accrual of interest, which is indicated in the body of the gratuitous loan agreement.
Regarding the actual body of the agreement, there are several recommended actions that are beneficial to both parties to the agreement:
- a notarized gratuitous loan agreement has greater legal force;
- a written agreement will act as evidence in any instance;
- invited witnesses can help resolve conflict situations.
Thus, each of the parties to the concluded gratuitous loan agreement can insure themselves in case of unforeseen circumstances. It is worth remembering that when inviting witnesses to an agreement, you need to ensure that these are people who do not know each other and who are not colluding.
Receiving a free loan under an agreement
A gratuitous loan for an individual is available in several directions. So, receiving can be done through:
- banking sector, according to the proposed programs;
- microfinance organizations that quite often hold similar promotions;
- employer, which is often practiced among employees.
To enter into an agreement on a gratuitous loan at the place of employment, the employee must submit an application to the accounting department. If the company has a fund of financial assistance, the applicant may well receive a profitable loan.
Microlenders often attract potential clients with similar programs - the first loan without interest and the like. Some large banking structures can afford the same.
As for the positive and negative features of this kind of interaction with creditors, the benefits for individuals are especially visible:
- instant execution of a gratuitous loan agreement;
- often no special cases are required for approval;
- there are no overpayments or hidden fees.
The negative aspects are the rather short periods for which funds are issued. At the same time, the gratuitous loan agreement may stipulate penalties for late repayment of funds received in an amount that greatly exceeds the loan received.
The conclusion of an agreement of this kind is accompanied by written confirmation, with the desired certification of a notary and the presence of witnesses. If these simple conditions are met, both parties to the concluded gratuitous loan agreement will be satisfied with the transaction.
Samples of gratuitous loan agreements (forms, blanks)
- Sample gratuitous loan agreement between individuals
- Sample gratuitous loan agreement between legal entities
