How to request a LOAN from an Individual (non-corporate)

[sean]

Hello,

I was wondering how can I request a loan from an individual with proof that I have intentions on paying them back?
The proof of employment is out of the question, as I am currently unemployed.

Obviously, a written agreement would be necessary....But any ordinary piece of paper won't do, would it?
What do I have to do to legally confirm that that I am taking responsibility on requesting such loan? Are there any places that will serve as a witness?... A bank, for example?

What are the legal process(es) that I have to go through in order to request a loan from one person?

Please let me know.
Thanks.

 

[NYClex]

Hm, this is difficult to answer. It totally depends on the potential creditor.

It is up to him to formulate the conditions under which he wants to give you his money. Some people are happy with the word of honor.

Some think it is sufficient if you write one sentence on a piece of paper like: Hereby I offer to borrow $ 10,000 from Uncle Frank and I will pay him back the sum until August 31, 2010 with 1% interest per year."

Some do want to write a sophisticated contract and take a corporate contract as a guideline.

And so on and so on.

The only rule I can give you is this: The less clear and detailed the contract the more you open the door for later arguments about it.


The same goes for proof of collateral. It depends on what the creditor thinks is sufficient. If you are unemployed, may be you have assets. If you have no income and no assets, then it is basically down to the trust that you might have income in the future. The creditor must know if he wants to rely on that or not.

Basic truth in this is: Even if you have an airtight contract, if your debtor has no money, you simply won't be able to collect.