Loan agreement examples: promissory note vs. consumer credit
Not all loan agreements are the same. A promissory note between two private individuals and a credit company's consumer-credit contract rest on different laws and give different protection. Here is the structure of both — so you know which one you're dealing with.
Example 1: promissory note between two private individuals
When both parties are private individuals, the loan rests on the Promissory Notes Act (622/1947) and freedom of contract. The Consumer Protection Act does not apply — no rate cap, no statutory withdrawal right, no APR disclosure duty. The terms are agreed directly, but statutory protection is thinner.
A promissory note contains at least:
- Parties (names, contact details)
- Principal (the amount lent)
- Interest (annual) — agreed freely, but not excessive (usury, Criminal Code 36:6)
- Repayment schedule (due dates and amounts)
- Default interest (Interest Act 633/1982) if payment is late
- Any collateral or guarantee (Act on Guarantees 361/1999)
- Date and both signatures
Example 2: consumer credit with a credit company
When the lender is a business (a bank or credit company), it is consumer credit. Then the Consumer Protection Act (38/1978) and the EU Consumer Credit Directive apply (2008/48/EC, replaced by (EU) 2023/2225 from November 2026). The law imposes strict duties on the company:
- The annual percentage rate (APR) must always be disclosed — it includes interest and all costs.
- Rate cap: nominal interest at most 15% + the Interest Act reference rate (for 1 Jan–30 Jun 2026 the reference rate is 2.50% → at most 17.50%), and the nominal rate is never above 20%.
- Other credit costs at most 0.01% of the loan amount per day, and never more than €150 per year.
- A 14-day right of withdrawal without reason.
- A creditworthiness assessment before granting — this is what leads to a rejection for someone with a payment default.
- The right to repay the loan early.
- A written contract and statutory pre-contract information.
A consumer-credit contract is drafted by the credit company under the law — you don't make it yourself. This section is for comparison, so you recognise the difference.
Comparison — what differs
| Private promissory note | Consumer credit (company) | |
|---|---|---|
| Governing law | Promissory Notes Act 622/1947 | Consumer Protection Act 38/1978 + CCD |
| Rate cap | None (limit: usury) | 15% + reference rate, max 20% |
| APR disclosure | Not required | Required |
| Right of withdrawal | Only if agreed | 14 days by law |
| Credit check | Not required | Required |
| Who drafts it | The parties (promissory note) | The credit company, by law |
Which one applies to you
On Vertaislaina24 the agreement always forms between two private individuals — it's a promissory note, not consumer credit. We are not a lender or a credit company, so the rate cap and withdrawal right don't come from law; the terms are agreed in the promissory note. That gives flexibility (for example for someone with a payment default), but it also means a written, careful agreement is both parties' responsibility. Use a template and state the terms clearly.
Frequently asked questions
Does the interest rate cap apply to a loan between private individuals?
No. The consumer-credit rate cap (nominal interest at most 15% + the Interest Act reference rate, and never above 20%) applies to consumer credit granted by a business. Between two private individuals the rate is agreed freely, with the ceiling coming from usury (Criminal Code 36:6) — an excessive rate is unlawful.
Does a private loan have a right of withdrawal?
There is no statutory 14-day withdrawal right that consumer credit has (Consumer Protection Act 38/1978). In a private loan, withdrawal can be agreed in the promissory note, but the law does not grant it. This is one key difference.
What is the annual percentage rate (APR)?
The APR expresses all the credit costs (interest plus fees) on a yearly basis, and a credit company must always disclose it. A private individual has no such disclosure duty, but for clarity you should still record the interest and all costs in the promissory note.
Is a loan made through Vertaislaina24 consumer credit?
No. Vertaislaina24 is a classifieds board between private individuals. The agreement forms between two private persons, so it is a promissory note — not consumer credit. We are not a lender or a credit company.
Get the agreement right
Once you know the difference, a promissory note is easy to make. Post a listing — your contacts stay private.
General information, not legal advice. The rate-cap figures are in force in 2026 (the reference rate is reviewed every six months). Vertaislaina24 is a classifieds board — not a party to the agreement.