Lending Money Repayable “On Demand”: Beware Prescription!

KVV Inc Attorneys

Published on: 04/03/2025

"On demand" loans, often used for family or business lending, can be tricky when it comes to prescription (the time limit for claiming debt). A recent Constitutional Court case clarified that unless otherwise agreed, these loans are "due and payable" the moment the money is advanced, not when you demand repayment. This means prescription starts ticking immediately, not years later when you decide to call in the loan. To avoid losing your money, clearly specify in your loan agreement what "on demand" means and when the debt becomes due.