Lending to a Friend or Relative – When Must You Register as a Credit Provider?

Lending to a Friend or Relative – When Must You Register as a Credit Provider?

Lending to a Friend or Relative – When Must You Register as a Credit Provider?KVV Inc Attorneys
Published on: 04/03/2025

Lending money to friends or family can be risky. While it seems natural, if the loan isn't "at arm's length" (a formal business arrangement) it may not fall under the National Credit Act (NCA). A recent case highlighted this, where a R15m informal loan between friends was deemed outside the NCA, saving the lender. However, relying on informal agreements is dangerous.

Credit Law
The Trouble with Family Loans: A R540,000 Lesson

The Trouble with Family Loans: A R540,000 Lesson

The Trouble with Family Loans: A R540,000 LessonKVV Inc Attorneys
Published on: 04/03/2025

Family loans can be risky. A recent court case highlights the importance of written contracts, even with family. In this instance, parents lost R540,000 because they couldn't prove a loan agreement with their daughter. Without a contract specifying terms, repayment, and intent, family ties offer no protection.

Credit Law

KVV Inc. Attorneys: Celebrating 10 Years of Excellence in Property Law and Conveyancing.

Fostering Partnerships, Driving Results.

© KVV Inc. Attorneys 2025. All Rights Reserved. Privacy Policy | POPIA

KVV Inc. Attorneys: Celebrating 10 Years of Excellence in Property Law and Conveyancing.

Fostering Partnerships,

Driving Results.

© KVV Inc. Attorneys 2025.

All Rights Reserved. Privacy Policy | POPIA