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Loan to help a family member
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Pixie_Trixie205
Posts: 2 Newbie
in Loans
Hello, my boyfriend recently took a loan out in his own name with his own details to help a family member pay for car repairs and other household items. I know he is fully responsible for paying the loan back he is not looking payment back from the family member but they are paying him back as a gesture of goodwill.
Is this legal? Is it okay that he took out a loan to help a family member, and they they are paying him back?
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Comments
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Individuals can give each other money for whatever reason they like. There is no gift tax in the UK so no issue from a tax perspective or legal perspective.
Whether it is OK that he took a loan out to help a family member depends on what agreement he made with the bank that loaned him the money. Assuming your boyfriend pays the bank back on time I doubt they care too much what the money was used for.2 -
What answer did he get when they asked what the loan was for?All shall be well, and all shall be well, and all manner of things shall be well.
Pedant alert - it's could have, not could of.3 -
Not sure what answer he gave.0
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As per the previous replies - strictly speaking he could, in theory, get into trouble if he lied about the reason for the loan. In practice, as long as he repays each instalment on time, the chances of anything bad happening are nil.
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You do need to be clear on the reason for the loan - but did they even ask?0
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Essentially he`s taken out a loan for car repairs, which is a service banks offer.
Who`s car is being repaired is irrelevant in the equation, why would it not be legal?I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0
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