Most banks lend money to private customers and businesses. In order to establish a new bank, there are some specific requirements that must be met. It is among other things to apply for permission from the Danish Financial Supervisory Authority.
Loans by banks
Based on stated equity, the composition of the board and other requirements, the Danish FSA assesses whether there is a basis for issuing a grant. In addition, a bank must be established as a public limited company and comply with the Financial Business Act.
Individuals must lend money
There is no law that an individual should not lend money to family and friends. Furthermore, there is also no requirement that as a private person one must impose interest and fees on the loan. However, in this case, it is still relevant that both the lender and the borrower agree on the amount, the repayment and if any. must be interest on the loan and general conditions. This can be designed in a contract where both parties sign. In this way, one is certain that no misunderstandings will arise during the loan period.
Loans from own company
“ However, a new law on shareholder loans came in 2017, which makes it possible if you meet a number of conditions.
If you as a private person have their own business and need to borrow money, it can be tempting to borrow money from their own company. But do you have to do it at all? If you have a sole proprietorship, you can borrow money from it, as income and expenses are part of the owner’s private finances. If, on the other hand, a company is set up as a capital company, that is, a limited liability company, a public limited company or an entrepreneurial company, it must not, in principle, lend money to you or your family. However, a new law on shareholder loans came in 2017, which makes it possible if you meet a number of conditions.
Who must be lent to
The banks must not lend money to persons under the age of 18, as one must be of age to sign any contract and in this case a loan contract. Although in principle you only have to be 18 years of age and be able to borrow money, there are many banks, especially online banks, that set the age limit higher somewhere between 18 and 25 years. The vast majority of banks also have a requirement that the borrower must not be registered as RKI or debtor. The banks always make a credit assessment of the applicant to assess whether they want to offer the person a loan.
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