FAQ

ABOUT CREDI (6)

Credi.com is a world-first relationship-lending platform that empowers ‘The Bank of Mum and Dad’. It is an efficient, cost-effective means of formalising loan agreements between family members, friends and businesses. It reduces the stress, heartache and potential for court action.

Credi is a web-based app specially designed to allow you to create, manage and automate your personal lending with friends, family members and business acquaintances. Credi does not lend money, it is simply the software that helps you manage and formalise your lending and borrowing with another party. Credi is designed and commercialised by Credi Pty Ltd Australia (Credi).

At Credi, we have a clear and simple fee structure. All loans on the Credi platform under $2000 AUD are free of charge. For loans over $2000 AUD, Credi charges a one-off fee of $88 AUD including GST.

No, Credi Pty Ltd is not a money lending company. At Credi, we only provide you with the Credi platform to facilitate the management of your loan information, formalise it, track repayments and record updates.

Credi does not count towards your credit score, but that may change in the future, so treat a loan through Credi as you would any other loan.

Credi is not a lending marketplace and does not connect users to lenders. Credi is simply a platform that a lender and borrower use to facilitate their loan, making the process easier to manage and formalised all in one place.

Credi allows you to build your loan, varying terms such as loan amount, term, interest rate, repayments using the loan builder functionality until they are right for you. Then you personalise the loan request and send it to one or more people, accept, negotiate or reject offers and once two parties agree, a loan agreement is e-signed. Communications and alerts will advise of forthcoming repayments on the due date and the repayment will be recorded or amended and the loan record updated.

The Borrower and Lender deal directly with each other, setting up the loan parameters, negotiating and agreeing on the document.

I’M NEW TO CREDI / GENERAL (20)

Credi is a web-based app specially designed to allow you to create, manage and automate your personal lending with friends, family members and business acquaintances. Credi does not lend money, it is simply the software that helps you manage and formalise your lending and borrowing with another party. Credi is designed and commercialised by Credi Pty Ltd Australia (Credi).

At Credi, we have a clear and simple fee structure. All loans on the Credi platform under $2000 AUD are free of charge. For loans over $2000 AUD, Credi charges a one-off fee of $88 AUD including GST.

No, Credi Pty Ltd is not a money lending company. At Credi, we only provide you with the Credi platform to facilitate the management of your loan information, formalise it, track repayments and record updates.

Yes

Treat a personal loan from a friend or family member like you would any other loan. You must be prepared to meet all of your obligations on time until the loan is paid in full. A private loan just means a loan from someone other than a bank or lending institution, and the agreement is drawn up between the two of you. The fact that you may know your lender/borrow well should not change the responsibilities associated with any loans. A loan agreement and repayment schedule should be drawn up to avoid any misunderstandings or conflict.

Credi is offered to over 50 countries around the world. Credi.com calculates loans in the currency of your selected country and the Credi loan agreement is governed by the law in the country that the borrower resides in. This may mean that Credi is applicable and usable by you.

While a loan agreement between family and friends may not be necessarily a legal document, it does protect both sides if the matter goes to court.

Formalising a loan agreement just means putting in writing something that may have been talked about. This is to clearly identify the relevant interest rates, loan terms and conditions.

Before committing to a loan, think about how realistic the repayment schedule for the recipient of the loan is. Consider multiple ways to safeguard the loan from becoming embroiled in emotions if loan is from a known party. Ultimately, both parties should be aware of the obligations and responsibilities associated with taking on the loan. It is wise to draw up a contract between parties to protect against any disagreement.

A loan agreement should describe the loan terms, terms of repayments, interest, what happens if the borrower misses a repayment, the relevant dates, and persons involved. Each person involved should have a copy of the loan agreement, or have it electronically. This written agreement is legally binding.

Your loan is subject to the lender’s local tax and lending laws, as well as the borrower’s local tax and lending laws.

Credi does not count towards your credit score, but that may change in the future, so treat a loan through Credi as you would any other loan.

Credi is not a lending marketplace and does not connect users to lenders. Credi is simply a platform that a lender and borrower use to facilitate their loan, making the process easier to manage and formalised all in one place.

Credi allows you to build your loan, varying terms such as loan amount, term, interest rate, repayments using the loan builder functionality until they are right for you. Then you personalise the loan request and send it to one or more people, accept, negotiate or reject offers and once two parties agree, a loan agreement is e-signed. Communications and alerts will advise of forthcoming repayments on the due date and the repayment will be recorded or amended and the loan record updated.

The Borrower and Lender deal directly with each other, setting up the loan parameters, negotiating and agreeing on the document.

Credi does not guarantee repayment of loans. Lenders fund loans at their own risk and goodwill to help out a friend, family member or business acquaintance.

Yes, you can! The way to build an interest only loan in the Credi platform is to enter the same amount in the fields ‘loan amount’ and select ‘balloon amount’, as well as entering your interest rate of course. The periodic repayment schedule will then reflect interest only payments with the final payment being the loan principal.

While you can give an interest free loan to a family member, financial planners don’t endorse this practice. To minimise pain and conflict, financial planners advise charging interest on the loan, treating it like any other loan. A minimum amount of interest for example, is an amount that will ensure that repayments keep up with inflation. Putting together a contract such as Credi’s loan agreement that leaves out any room for assumptions. Giving an interest free loan to a relative or friend might also fall under the tax definition of a ‘gift’, which has its own rules and regulations you would have to check for your locality.

When considering committing to giving or receiving the loan, think about how you or your friend/relative will pay back the money. Consider the realities of your relationship with the person and ways can you safeguard yourself from anything going wrong in relation to money. Do you have a loan contract and a reliable way to track repayments without emotions being entangled?

The interest rate for a personal loan to give should be determined by the length of repayment and any national government approved interest rates for family loans. The annual limit for tax-free gifts to family members in Australia is $14000, so especially when you loan is beyond that, should you charge interest.

Credi is a web-based application accessible from any device. There is no download required at all.

Yes, Credi works across all devices: desktop, laptop, tablets and mobile.

LOANS 101 (18)

A friends, family and businesses relationship loan is a type of Peer-to-Peer lending (P2P). These types of loans are part of a fast growing trend of people lending/borrowing money to each other without the intermediary of a bank or financial institution. Often P2P loans are unsecured loans, which means the lender does not require the borrower to pledge assets or belongings as collateral.

Treat a personal loan from a friend or family member like you would any other loan. You must be prepared to meet all of your obligations on time until the loan is paid in full. A private loan just means a loan from someone other than a bank or lending institution, and the agreement is drawn up between the two of you. The fact that you may know your lender/borrow well should not change the responsibilities associated with any loans. A loan agreement and repayment schedule should be drawn up to avoid any misunderstandings or conflict.

The main purpose of a loan contract is to define what the parties involved are agreeing to, what responsibilities each party has and for how long the agreement will last.

While a loan agreement between family and friends may not be necessarily a legal document, it does protect both sides if the matter goes to court.

Formalising a loan agreement just means putting in writing something that may have been talked about. This is to clearly identify the relevant interest rates, loan terms and conditions.

Before committing to a loan, think about how realistic the repayment schedule for the recipient of the loan is. Consider multiple ways to safeguard the loan from becoming embroiled in emotions if loan is from a known party. Ultimately, both parties should be aware of the obligations and responsibilities associated with taking on the loan. It is wise to draw up a contract between parties to protect against any disagreement.

Your loan agreement should include how much the loan is for, the interest rate, what the money is to be used for, clear repayment terms, what will happen if you fall behind or miss a payment (such as a late fee), and signatures from both parties.

A loan agreement should describe the loan terms, terms of repayments, interest, what happens if the borrower misses a repayment, the relevant dates, and persons involved. Each person involved should have a copy of the loan agreement, or have it electronically. This written agreement is legally binding.

Yes, you can! The way to build an interest only loan in the Credi platform is to enter the same amount in the fields ‘loan amount’ and select ‘balloon amount’, as well as entering your interest rate of course. The periodic repayment schedule will then reflect interest only payments with the final payment being the loan principal.

While you can give an interest free loan to a family member, financial planners don’t endorse this practice. To minimise pain and conflict, financial planners advise charging interest on the loan, treating it like any other loan. A minimum amount of interest for example, is an amount that will ensure that repayments keep up with inflation. Putting together a contract such as Credi’s loan agreement that leaves out any room for assumptions. Giving an interest free loan to a relative or friend might also fall under the tax definition of a ‘gift’, which has its own rules and regulations you would have to check for your locality.

When considering committing to giving or receiving the loan, think about how you or your friend/relative will pay back the money. Consider the realities of your relationship with the person and ways can you safeguard yourself from anything going wrong in relation to money. Do you have a loan contract and a reliable way to track repayments without emotions being entangled?

The interest rate for a personal loan to give should be determined by the length of repayment and any national government approved interest rates for family loans. The annual limit for tax-free gifts to family members in Australia is $14000, so especially when you loan is beyond that, should you charge interest.

Yes. Charging interest on a loan is important because it sets up the agreement as something other than a gift or a handout. Interest can also make up for differences in inflation between the start and the end of the loan. The interest rate for a personal loan to give should be determined by the length of repayment and any national government approved interest rates for family loans. The annual limit for tax-free gifts to family members in Australia is $14000, so especially when you loan is beyond that, should you charge interest.

If the loan is formally agreed upon in writing with a plan to repay it by the borrower, it does not interfere with any taxation. However, if a loan is written off, it counts as a ‘gift’ on behalf of the lender, which does have tax implications. For the borrower, if the loan is forgiven, at that point it becomes classified as income and must be declared for tax purposes.

You can forgive a loan from a family member, however this does affect your taxation. Check your local area’s tax rules about this. For example, in many places a gift over $15,000 incurs a tax for the giver which must be accounted for.

Most loan contracts define clearly how the proceeds will be used. There is no distinction made in law as to the type of loan made for a new home, a car, how to pay off new or old debt, or how binding the terms are. The signed loan contract is proof that the borrower and the lender have a commitment that funds will be used for a specified purpose, how the loan will be paid back and at what amortization rate. If the money is not used for the specified purpose, it should be paid back to the lender immediately.

A breakdown in a personal relationship when you have financial commitments can be tricky to navigate. You can get free legal advice if something goes wrong, otherwise try to maintain a civil relationship and deal with your mutual obligations. Using Credi, or some other loan documentation service will protect both of you if the relationship does break down.

Making a loan agreement just means that there are safety nets for both parties involved in the loan. This does not mean that there is no trust, but rather, a clear definition and set of expectations around the loan that you are both happy with and are willing to follow. This shows that you value your relationship and can safely know that a loan will never come in between your friendship or relationship together.

LOANS BEST PRACTICE (5)

Your loan agreement should include how much the loan is for, the interest rate, what the money is to be used for, clear repayment terms, what will happen if you fall behind or miss a payment (such as a late fee), and signatures from both parties.

When considering committing to giving or receiving the loan, think about how you or your friend/relative will pay back the money. Consider the realities of your relationship with the person and ways can you safeguard yourself from anything going wrong in relation to money. Do you have a loan contract and a reliable way to track repayments without emotions being entangled?

Yes. Charging interest on a loan is important because it sets up the agreement as something other than a gift or a handout. Interest can also make up for differences in inflation between the start and the end of the loan. The interest rate for a personal loan to give should be determined by the length of repayment and any national government approved interest rates for family loans. The annual limit for tax-free gifts to family members in Australia is $14000, so especially when you loan is beyond that, should you charge interest.

A breakdown in a personal relationship when you have financial commitments can be tricky to navigate. You can get free legal advice if something goes wrong, otherwise try to maintain a civil relationship and deal with your mutual obligations. Using Credi, or some other loan documentation service will protect both of you if the relationship does break down.

Charging interest on a loan is important because it sets up the agreement as something other than a gift or a handout, and can also account for inflation. The interest rate for a personal loan to give should be determined by the length of repayment and any national government approved interest rates for family loans (if any). The annual limit for tax-free gifts to family members in Australia is $14000, so especially when you loan is beyond that, should you charge interest.

PRICING (2)

At Credi, we have a clear and simple fee structure. All loans on the Credi platform under $2000 AUD are free of charge. For loans over $2000 AUD, Credi charges a one-off fee of $88 AUD including GST.

Yes

RULES & REGULATIONS (9)

Credi is offered to over 50 countries around the world. Credi.com calculates loans in the currency of your selected country and the Credi loan agreement is governed by the law in the country that the borrower resides in. This may mean that Credi is applicable and usable by you.

While a loan agreement between family and friends may not be necessarily a legal document, it does protect both sides if the matter goes to court.

Formalising a loan agreement just means putting in writing something that may have been talked about. This is to clearly identify the relevant interest rates, loan terms and conditions.

Your loan is subject to the lender’s local tax and lending laws, as well as the borrower’s local tax and lending laws.

Credi does not count towards your credit score, but that may change in the future, so treat a loan through Credi as you would any other loan.

While you can give an interest free loan to a family member, financial planners don’t endorse this practice. To minimise pain and conflict, financial planners advise charging interest on the loan, treating it like any other loan. A minimum amount of interest for example, is an amount that will ensure that repayments keep up with inflation. Putting together a contract such as Credi’s loan agreement that leaves out any room for assumptions. Giving an interest free loan to a relative or friend might also fall under the tax definition of a ‘gift’, which has its own rules and regulations you would have to check for your locality.

If the loan is formally agreed upon in writing with a plan to repay it by the borrower, it does not interfere with any taxation. However, if a loan is written off, it counts as a ‘gift’ on behalf of the lender, which does have tax implications. For the borrower, if the loan is forgiven, at that point it becomes classified as income and must be declared for tax purposes.

You can forgive a loan from a family member, however this does affect your taxation. Check your local area’s tax rules about this. For example, in many places a gift over $15,000 incurs a tax for the giver which must be accounted for.

Most loan contracts define clearly how the proceeds will be used. There is no distinction made in law as to the type of loan made for a new home, a car, how to pay off new or old debt, or how binding the terms are. The signed loan contract is proof that the borrower and the lender have a commitment that funds will be used for a specified purpose, how the loan will be paid back and at what amortization rate. If the money is not used for the specified purpose, it should be paid back to the lender immediately.

USING CREDI / THE NITTY GRITTY (5)

Credi allows you to mark a loan as cancelled inside the platform. This will notify both parties of the loan cancellation, once agreed the loan will be marked as cancelled in your Credi account. The ‘Cancel Loan Action’ is under the ‘Loan Action’ drop down on the top right of the manage loan page.

Yes, you can! The way to build an interest only loan in the Credi platform is to enter the same amount in the fields ‘loan amount’ and select ‘balloon amount’, as well as entering your interest rate of course. The periodic repayment schedule will then reflect interest only payments with the final payment being the loan principal.

On the Manage Loan page, below your agreement details, you will see the Manage Repayments section. Here you can view your repayment schedule and your repayment transactions.

At the top of the repayment schedule, you’ll see the initial disbursement amount. This is the full amount lent. Below this is the repayment schedule with the planned transaction dates and amounts. Lenders can mark previous repayments as Overdue, Cancelled or even Forgiven. Repayments will be marked on the schedule automatically as Cleared unless specified otherwise.

Future repayments can only be Cancelled or Forgiven. The borrower is automatically notified by email as changes are made.

Borrowers also have the ability to stop individual repayment reminder emails in this section.

The Credi platform supports the following browsers listed below:

  • Chrome 54 and later
  • Firefox 48 and later
  • Safari 10 or later
  • Microsoft Edge

Unfortunately, Credi does not support any version of Internet Explorer. For the best experience, we recommend downloading the newest version of your preferred browser.

To make sure works to the best of the platforms ability we suggest checking your browser settings:

  • Make sure cookies are enabled in your browser so all elements of our application work as expected.
  • Pop-ups and JavaScript should be enabled in your browser, so you can view errors, alerts and preview screens.
  • The minimum screen resolution should be set to 1024 x 768 for optimal viewing.
  • If you’re using a Netbook, try setting the resolution to 1200 x 800 if you’re seeing things out of place in the application.
  • The latest version of Flash and/or HTML5 is required to view any of the videos on our site.

To add manual payments click on the ‘Loan’ icon at the top of the dashboard page. From the list of loans, click on ‘Manage’ icon from the loan to add the extra payment (right-hand side). Scroll down the ‘manage a loan’ page up to the ‘Manage Repayments’ section and click on the ‘Add a Payment’ button. Enter the extra payment details such as date, status (mark as cleared), amount and click done.

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