Loan agreement between private individuals (Romania)

Published byDocMuse

The agreement for a loan of money between relatives, friends or acquaintances in Romania: the sum, how and when it is handed over, the repayment schedule, interest and what happens on late payment. It states the rule that makes excessive interest between private persons void — no more than the legal rate plus 50% a year (Ordinance no. 13/2011) — and that, notarised, it becomes an enforcement title.

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Common questions

What interest may be charged on a loan between private individuals in Romania?

At most the legal rate plus 50% a year. Between people not acting in business, the legal rate is the National Bank of Romania's reference rate reduced by 20%, and agreed interest more than half again above it is void, in which case the lender also loses the right to the legal rate (arts. 3 and 5 of Ordinance no. 13/2011). A loan of money is presumed to carry interest (art. 2159 of the Civil Code), and where no rate is stated the legal rate is owed — so an interest-free loan writes a rate of 0% into the agreement.

Does a private loan have to be in writing?

The loan is valid without a document, but a transaction over 250 lei can no longer be proved by witnesses (art. 309 of the Code of Civil Procedure), and agreed interest must be set in writing — otherwise only the legal rate is owed (art. 6 of Ordinance no. 13/2011). A written agreement, with proof the money was handed over — a bank statement or a receipt — is what decides any later case.

What does notarising the loan agreement add?

A notarised loan agreement is an enforcement title: if the money is not repaid, the lender can go straight to a bailiff, without a lawsuit. A privately signed agreement needs a judgment or a payment order first.